Reddit touts 9x return on ad spend for financial services

Reddit is pitching financial services marketers on its advertising platform, citing a commissioned TransUnion analysis that found advertisers generated nine times their Reddit ad spend across Europe, the Middle East and Africa.

The marketing mix modeling study examined financial services promotions on the platform. According to the analysis, the returns were much higher than those the sector sees on other apps.

Advertising impact beyond Reddit

Reddit said TransUnion found that 81% of its total advertising impact came directly from Reddit, while 19% came from improved performance in other marketing channels. Paid search benefited most from that cross-channel effect, according to the data.

Financial services shoppers on Reddit

In its pitch to financial marketers, Reddit highlighted the role of community discussions in product research and purchasing decisions.

The company said 62% of financial services shoppers in the UK on Reddit consider honest, unfiltered experiences from everyday people an important factor when researching products or services. In Germany, 70% say Reddit helps them buy with confidence.

Reddit has more than 500 million weekly users, giving the platform a large audience spanning a wide range of interests.

Separately, Reddit reported in its Q3 earnings that search referral traffic dropped by more than one million referrals on average per week in October.