Mobile-first news aggregator Reddit announced new video advertising capabilities this week, in addition to a revamped self-serve buying platform. Along with previously announced features including profile pages for select publishers and promoted posts, the strategy helps Reddit diversify its revenue while promising brands a more targeted experience.
With mobile ad spend about to hit $100 billion this year, traditional brands are opening their pocketbooks and increasing their digital advertising budgets. Video has been one of the key drivers in shifting budgets, promising cheaper and wider reach and better targeting capabilities relative to traditional media.
With over 250 million monthly visitors spending more than 14 minutes on the site, Reddit offers brands a way to expand their reach. The platform also offers clear ROI and measurement tools (i.e. what Snapchat is missing), helping brands reach a more targeted demographic of millennials. Major brands like Toyota, eBay, Coca-Cola and Duracell are already flocking to the social news site.