Reddit Tests Search Ads as Q3 Ad Revenue Rises 54% Year Over Year

Reddit is testing ads in search results with a select group of eligible advertisers, adding paid placements to product-related queries as its ad business grows.

The test may select ads using several factors, including relevance to a search query. A search for “espresso station” could show ads for espresso machines, coffee beans or mugs. A search for “home office setup” could surface monitors, desks or office chairs. Reddit plans to evaluate user responses and refine the experience for users and advertisers.

Reddit’s advertising revenue was $846.996 million in the quarter ended Sept. 30, up 54% year over year from $549.342 million. The company has not disclosed how much revenue the search placements could generate.

Separately, Reddit’s search-referral decline exceeded 1 million referrals per week on average in October.