Reddit Ads Manager adds AI targeting tools to boost ad performance and ROI

November 10, 2025 at 4:55:10 AM

TL;DR Reddit updated Ads Manager to simplify AI-powered automated targeting, expanding reach beyond initial targeting to boost campaign performance. It uses machine learning analyzing targeting, creatives, and engagement while maintaining brand safety and exclusions. Automated targeting improves impressions, conversions, and lowers costs. Reporting offers insights into audience interests and communities. Alcohol and special ad categories aren't supported.

Reddit Ads Manager adds AI targeting tools to boost ad performance and ROI

Reddit has updated its Ads Manager UI to simplify the use of its AI-powered targeting tools, specifically automated targeting (formerly dynamic audience expansion). This feature uses machine learning to extend ad reach beyond initial audience targeting by analyzing factors such as Reddit Audience targeting, ad creative, landing page content, and user engagement. It respects negative keyword and community exclusions as well as brand safety inventory tiers.

Key Features and Performance Benefits

Automated targeting enhances campaign performance across various objectives:

  • Brand awareness and reach: 5.2% higher impression volume
  • Traffic: 4.1% lower cost per click
  • Conversions: 11% higher conversion volume and 10% lower cost per action
  • Video views: 1.4% higher volume
  • App installs: 9.1% lower cost per install

It improves ROI without manual adjustments, expands audience targeting while maintaining brand safety, and optimizes budget allocation between manual and automated targeting based on performance signals.

Reporting and Transparency

The Ads Manager includes an insights panel and downloadable reports featuring interest and community data for automated targeting. Users can view aggregated insights or detailed performance metrics in the Report Center, enhancing transparency into audience behavior.

Important Considerations

  • Automated targeting is not available for alcohol or special ad category advertisers.
  • It respects existing brand safety settings and exclusions.
  • For best results, automated targeting should be enabled at campaign start.
  • Budgets are dynamically optimized to prioritize the best-performing signals.
  • A minimum two-week period is recommended before assessing targeting performance for full insights.

This update aims to help advertisers reach more relevant redditors efficiently while maintaining control over brand safety and campaign objectives.

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