Reddit Expands Dynamic Product Ads to All Advertisers Boosting ROAS

May 23, 2025 at 4:11:02 AM

TL;DR Reddit launched Dynamic Product Ads (DPA) for all advertisers, using shopping signals to match products to users. DPAs doubled ROAS in Q1 2025 compared to standard ads. Improvements include better targeting, easier onboarding of large catalogs, and Smartly platform integration. Reddit users are active shoppers, with 85% using Reddit in product consideration and 25% expecting to spend more soon.

Reddit Expands Dynamic Product Ads to All Advertisers Boosting ROAS

Dynamic Product Ads (DPA) are now generally available in the Reddit Ads Manager, enabling advertisers to use contextual shopping signals to match products from their catalogs to Reddit users based on their shopping journey stage. This tool helps reach high-intent shoppers on Reddit by showing the right product to the right person in the right context, driving conversions and improving Return on Ad Spend (ROAS).

Performance Benefits and Case Studies

Advertisers using DPA on Reddit have seen significant improvements in lower-funnel performance. In Q1 2025, campaigns combining Dynamic Product Ads and standard conversion campaigns achieved 2x higher ROAS with DPA. Lenovo and Assembly Global reported a +7% lift in purchase conversions using DPA, while VistaPrint achieved a 4X ROAS by incorporating DPA into their full-funnel strategy.

Key Enhancements Since Beta Launch (April 2024)

Two main areas of improvement have been made:

  1. Machine Learning Model Improvements: These have enhanced targeting and ad relevancy, resulting in a +94% higher ROAS in Q1 2025 compared to Q3 2024 for advertisers running campaigns in both periods.

  2. Ease of Use and Scalability: Advertisers can now onboard and build dynamic campaigns with larger product catalogs, including millions of products. Enhanced diagnostics help optimize campaign setup and resolve pixel and catalog issues. Additionally, the new Smartly integration (currently in beta) allows advertisers to plan, create, launch, and measure Reddit DPA campaigns directly within the Smartly platform, enabling creative automation, cross-channel insights, and better performance at scale.

Audience Insights

Reddit users are highly engaged and valuable shoppers. A survey of 1,138 Redditors found that 85% use Reddit during the consideration phase of their shopping journey, mainly reading reviews to narrow down product choices. Moreover, Redditors are 25% more likely than users of competitor platforms to expect increased spending in the next six months, indicating strong purchase intent.

Overall, Reddit’s Dynamic Product Ads offer advertisers an effective way to reach motivated shoppers with personalized product ads, backed by improved technology and user readiness to buy.

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