Matthias Stepancich
Apr 9, 2025
How to Measure the ROI of Reddit Ads
Comprehensive guide to measuring Reddit advertising effectiveness and ROI with advanced tracking and analytics techniques.
Measurement
Channels
Marketing Mix Modeling

Reddit’s Explosive Growth in Search Visibility
Reddit made its debut on the New York Stock Exchange (NYSE) in March 2024, a highly anticipated IPO that quickly demonstrated Reddit’s potential as a powerhouse in social media and online forums. The company went public with an initial share price of $34, which soon skyrocketed.
A significant factor behind Reddit’s stock surge is its unprecedented visibility on Google, which has amplified the platform’s reach and engagement. Since mid-2023, Reddit’s content has been appearing more frequently in Google search results, fueled by an update that prioritized “helpful content” from forums and community discussions. This spike in visibility is unparalleled in the history of Google search; according to SISTRIX data, Reddit’s visibility on Google’s U.S. search index leaped from 77 to over 2,000 points in a year and a half, an increase that no site had previously achieved in such a short time. Reddit quickly climbed from the 80th most visible site on Google to the 6th, solidifying its place as a primary source of authentic, user-driven information.
This exponential growth in search visibility appears linked to Google’s $60 million annual content licensing partnership with Reddit, announced in early 2024. Although Google denied that this deal influenced Reddit’s search rankings, the timing has led to widespread speculation. The partnership allows Google to train its AI models on Reddit’s data, enhancing its generative AI capabilities with insights derived from real user conversations. This AI deal, along with Reddit’s integration into Google’s “Discussions and Forums” feature, has propelled the platform’s prominence in search results, providing it with a consistent stream of organic traffic that has further boosted its stock performance and investor appeal.
Reddit’s Growing Influence in Search Results and Implications for Brands
A Semrush research revealed that Google search results prioritize content from Reddit with 10x higher weighting compared to Bing and 22x higher weighting compared to SearchGPT.
With Reddit’s newfound prominence in Google results, the platform has solidified its role as a critical space for online discussions and recommendations. As Reddit content becomes more visible in Google’s search landscape, it offers brands a unique opportunity to reach audiences organically, especially for smaller brands with limited resources for generating organic traffic. This prominence signifies a shift in the SEO landscape: brands must now consider Reddit as part of their marketing strategy to stay competitive in search results.
The reasons for Reddit’s growing importance for brands are multifaceted. First, users trust Reddit as a reliable source of genuine opinions, with surveys showing that 87% of redditors believe influence comes from valuable content, not popularity (source: Reddit/Talk Shoppe, US, Commissioned Research), and valuable, credible content leads to purchasing decisions. Given this, Reddit has become a valuable space for consumers seeking honest feedback, making it a critical channel for brands wanting to engage with potential customers authentically. For smaller brands, building a presence on Reddit, whether through organic participation in discussions or targeted ads, can offer cost-effective exposure to highly engaged audiences without the same level of investment required for broader advertising campaigns.
Reddit’s content also aligns well with Google’s focus on “helpful” and human-centric information, making it easier for brands to achieve visibility. Unlike traditional platforms, Reddit fosters user-led discussions, where brands can participate by providing value without the overt marketing tactics that can deter users on other social media channels. This approach helps brands establish credibility and foster loyalty, particularly in communities where users are cautious of overt self-promotion.
Additionally, with the rise of AI-generated content, people increasingly crave the personal, subjective, nuanced, or even brutally honest perspectives that only real human communities can credibly offer. Subreddits excel at delivering these authentic viewpoints, filling in the gaps that AI can’t quite bridge. Users value the raw, unfiltered discourse that thrives in these forums, which is precisely why Reddit stands out for brands looking to build trust and meaningful connections.
In light of these trends, Reddit has emerged as an invaluable platform for brands to engage users through community-centric strategies and enhance search visibility. While many brands now recognize Reddit’s potential, few take the crucial next step of integrating organic community-building with strategic paid campaigns. This integration gap represents a significant missed opportunity, as brands that successfully blend authentic engagement with targeted paid promotions can amplify their reach exponentially. One of the reasons for this hesitation is that brands still struggle to quantify Reddit ad ROI through traditional marketing tools.
Understanding Reddit’s Unique Audience
In order to craft winning creatives for Reddit campaigns, it’s crucial to first grasp the human element. Reddit’s user base is broad, spanning various demographics and geographies, but what binds them is a community-first mindset:
Authenticity: Redditors look for real conversations, honest feedback, and thoughtful contributions.
Deep Engagement: Subreddit threads often stretch for hundreds of comments, allowing people to solve problems, debate issues, or share personal experiences.
Community Moderation: Each subreddit enforces its own rules and etiquette, managed by volunteer moderators and active members.
Redditors are famously passionate about their interests. They share advice, swap stories, and seek recommendations from like-minded enthusiasts. If your product or service naturally fits these niche communities, the potential for engagement is high. At the same time, Reddit users have a built-in radar for disingenuous marketing. If you want to use Reddit as a marketing channel, your messaging needs to be transparent and value-driven.
For brands, this can be both a blessing and a challenge. Nail the tone, and you’ll earn trust – often more so than on many mainstream platforms. But push a hard sell or ignore community norms, and you could face scrutiny, downvotes, and even bans.
Why This Matters for ROI
ROI hinges on how well your brand message resonates with subreddit users. The more you mesh with a community’s language and culture, the higher your potential for conversions. However, vanity metrics (like comment counts) won’t give the full story. Accurate ROI measurement demands a rigorous approach – one that looks beyond clicks and impressions to see how Reddit ads truly impact your bottom line. We’ll see this in a moment.
Key Metrics to Consider Before Launching Reddit Ads
When planning a Reddit Ads campaign, you’ll encounter classic performance marketing metrics such as CPC, CPM, CTR, CPA, ROAS.
These metrics are crucial, but they’re only part of the puzzle. While they offer short-term snapshots of ad performance, they don’t necessarily reveal the real, long-term impact of your campaigns. In the following paragraphs, we’ll see how traditional tracking mechanisms can fall short and why advanced testing methods are needed to get a complete ROI picture.
Tactics for Targeting and Ad Creation
Niche Targeting
Reddit’s targeting features allow you to zero in on specific subreddits, demographics, or interests. This is one of the platform’s biggest draws. If you’re selling artisanal coffee accessories, for example, subreddits like r/Coffee or r/Barista can be fertile ground. By honing in on these relevant communities, you’re more likely to reach people who actually care about your product.
Ad Types
Promoted Posts: These ads appear in subreddit feeds but are labeled as sponsored. They blend with organic posts.
Display Ads: Larger, more visual ads that often appear on the sidebar or top of the page.
Video Ads: Auto-playing videos that catch a user’s attention as they scroll.
Selecting the right format depends on your goals: promoted posts can encourage discussions, while display ads offer eye-catching visuals.
Copy and Creative
Use Reddit’s authentic tone to your advantage. Don’t write like an old-school billboard; instead, spark curiosity or provide insight. Show a deep understanding of each subreddit’s culture. A bit of humor can help, but avoid memes if they don’t fit your brand’s voice. Most importantly, keep your CTA clear and relevant.
Respecting Community Rules
Always check a subreddit’s rules before posting or advertising. These guidelines exist to maintain quality discussions, and they vary from one subreddit to another. By respecting local customs, you not only preserve your brand reputation but also increase your chances of positive reception.
Common Tracking Techniques
To measure the ROI of Reddit ads, you need to track more than just impressions and upvotes. Here are the typical measurement tactics commonly adopted by small to medium-sized businesses:
Conversion Pixels
Reddit provides a tracking pixel you can add to your site. This code monitors visitor actions after they click your ad. Did they buy something? Sign up for a newsletter? Download an eBook? Conversion pixels help attribute these outcomes to specific campaigns.
UTM Parameters
UTM parameters attach small bits of identifying info to your URLs. For example:https://www.yoursite.com/product?utm_source=reddit&utm_medium=cpc&utm_campaign=summer_sale
When a visitor arrives at your site through this link, your analytics tool (like Google Analytics) knows which Reddit campaign led them there. This data can be essential for seeing which ads spark clicks and conversions.
Coupon Codes and Unique Offers
If you run an eCommerce store, you can use special promo codes, think “REDDIT10”, to link sales back to a specific campaign. Anyone who uses that code clearly arrived from Reddit. It’s straightforward and often cost-effective for small or medium-sized businesses.
However, while these methods provide surface-level insight, they’re still not robust enough to give you the full ROI picture, especially in a multi-channel world. That’s where incrementality testing (or a combination of incrementality and MMM) steps in, which we’ll dive into shortly.
Common Measurement Tools
When it comes to aggregating and analyzing data from your Reddit campaigns, this is how the average SMB does it:
Google Analytics: Used to track goals (like purchases or sign-ups) and map user journeys from Reddit to site.
Reddit Ads Dashboard: Offers baseline metrics: impressions, clicks, and conversions as measured by Reddit.
Attribution-based Third-Party Analytics: Tools like Mixpanel can offer more granular user-behavior insights, while still employing attribution models to assign credit to the specific campaigns or ads that generated revenue.
Heatmaps: Used for visualizing how Reddit-driven visitors interact with landing pages.
Limitations of Standard Tracking
Even with these tools, certain blind spots remain. People may discover your brand on Reddit, leave, and return later via a different channel. Or they may see your ad, talk about it offline, and eventually purchase without clicking a tracked link. These real-world behaviors can slip through the cracks, making it tricky to truly measure how many leads or sales your Reddit ads are driving.
This challenge is particularly pronounced because Reddit functions predominantly as an upper-funnel channel, excelling at brand-building and awareness rather than direct response marketing. The consumer journey from Reddit exposure to purchase can span weeks or even months as users move through various consideration stages. Most attribution tools operate on much shorter timeframes and simpler models, meaning they fail to capture these extended, complex pathways to conversion.
When marketers see minimal or no directly attributable sales from their Reddit campaigns, frustration often sets in.
This leads to a common pattern where businesses enthusiastically test Reddit advertising, only to hastily abandon the platform when conventional metrics fail to show immediate ROI, despite the real but unmeasured value being generated through brand familiarity and trust-building. This premature abandonment means many brands never realize Reddit’s full potential as part of an integrated marketing strategy.
Are Reddit Ads Worth It?
Before we explore advanced ROI measurement methods, let’s address a core question: are Reddit ads even worth the effort? The quick answer is yes… if there’s a relevant subreddit or interest group for your offering, and if you’re ready to adopt a transparent, community-centric approach.
Reddit’s niche communities are a treasure trove of potential advocates. A well-placed ad in a subreddit that truly aligns with your brand can lead to enthusiastic engagement. Yet this advantage also comes with risk. Reddit’s user base is vocal and quick to spot disingenuous marketing. To capitalize on the opportunity, you must be prepared to offer genuine value, and manage your community interactions carefully.
Despite Reddit’s potential, it remains an under-tested channel for top-of-funnel awareness campaigns and broader brand-building. Many marketers have heard horror stories about brands struggling to prove value on Reddit, so they discuss it in strategy sessions but rarely push a campaign live. This hesitation means most brands miss out on the platform’s unique strengths (engaged audiences, niche forums, and high-quality discussions) because they aren’t sure how to accurately track their investment and demonstrate tangible results.
Cost-Effective Approaches to Reddit Advertising
Strategic Bidding
Reddit’s ad platform suggests a bid range based on your targeting. Start near the lower end, watch results, and adjust accordingly. This approach keeps initial spend under control while you learn.
Creative Rotation
Avoid “ad fatigue” by regularly testing new headlines, copy, and visuals. Communities can grow weary of repetitive ads, leading to lower CTR.
Timing Your Ads
Reddit usage peaks at certain times and days. Experiment with different posting schedules to find when your target subreddits are most active.
Integrating Paid with Organic Engagement
Alongside paid ads, you should also post organically: answer questions or share insights in subreddits where your expertise is relevant. Over time, building a reputation for authenticity can elevate the impact of your paid ads.
Nurturing Long-Term Relationships and Brand Loyalty
While you might see immediate conversions from a carefully placed campaign, the real value of Reddit often surfaces over time. Here’s how to cultivate ongoing brand loyalty:
Stay Active: Maintain your presence in relevant subreddits, responding to user questions or feedback.
Reward Advocates: Offer special discount codes or product samples to loyal Redditors who champion your brand.
Demonstrate Transparency: If you adapt your products or messaging based on subreddit discussions, let the community know.
With consistent effort, you can turn curious Redditors into lifelong brand fans, and that’s an outcome that standard click metrics barely begin to quantify.
Embrace Better Measurement with Incrementality Testing
While the above-mentioned common tracking tactics (tracking pixels, UTM parameters, and coupon codes) offer a useful baseline to track Reddit ads’ ROI, they only reveal part of the story, especially in an environment where potential customers might engage with your brand multiple times across different channels.
If you’re new to Reddit campaigns, the only way to measure the ROI of Reddit ads with true accuracy is by designing and launching an incrementality test. Incrementality testing helps you isolate the effect of a specific channel or campaign from other marketing activities, by comparing performance in controlled environments. This approach can tell you whether your revenue is actually increasing because of your Reddit campaigns, or if the same increase would’ve happened anyway, even without those ads.
For businesses that have been running Reddit ads for at least one to two years (and thus have historical data to review), Marketing Mix Modeling (MMM) combined with incrementality testing is the gold standard. MMM analyzes how all your marketing channels interact over time, while incrementality testing refines these insights by confirming the unique contribution of Reddit ads. The combination offers the clearest picture of how each part of your marketing strategy works together, letting you confidently scale campaigns or make budget shifts based on data-driven insights.
Why This Matters
Adopting these advanced methods might sound daunting, especially if you’re a small or medium-sized business without an in-house data science team. However, without incrementality testing or MMM, you’re going to make budget allocation decisions based on partial or misleading data. You may allocate more or less budget to Reddit ads without a true sense of their impact, potentially missing out on untapped revenue or, conversely, overspending on underperforming channels.
Let BlueAlpha Build Your Next Incrementality Test
That’s where BlueAlpha steps in. We understand that designing robust incrementality tests and sophisticated MMM frameworks can be complex. Our team has deep expertise in data-driven strategies, without requiring you to hire (and manage) a specialized data science team in-house. We’ll help you set up a precise incrementality testing plan (or combine it with MMM) to measure the real-world causal effect of your Reddit campaigns.
No Data Science Headaches: We take care of the technical heavy lifting.
Custom-Tailored Approach: Every brand is unique. We’ll design tests that fit your specific goals, budget, and audience.
Actionable Insights: No obscure charts. Our reports break down exactly by how much your Reddit ads are impacting (or could impact) sales and customer acquisition, so you can make confident decisions moving forward.
Ready to see how incrementality testing can unlock the true potential of your Reddit Ads?
Let’s talk. BlueAlpha is here to design a measurement strategy that goes beyond clicks and attribution modeling, revealing the genuine value your Reddit campaigns bring to your business.

