Reddit (NYSE:RDDT) shares moved more than 6% higher after it unveiled two new AI-powered advertising tools designed to help brands better engage with its user community by leveraging real conversations and trends.
Reddit Insights is a social listening tool that provides marketers with real-time data from Reddit’s vast repository of over 22 billion posts and comments, the social media platform said. It helps identify emerging trends, test campaign ideas, and understand brand sentiment by summarizing conversations, linking to specific posts, and highlighting top subreddits relevant to the brand or topic.
Meanwhile, the Conversation Summary Add-ons feature allows brands to showcase positive user comments or sentiment summaries directly below their advertisements. It highlights authentic community feedback about the ad content, aiming to increase credibility and engagement by tapping into real user discussions on Reddit.
“With Reddit Community Intelligence, we’re not just surfacing insights and conversations; we’re offering deep context, perspective, and the voice of real people at scale.” Reddit chief operating officer Jen Wong said in a statement.
Publicis Media Exchange was the exclusive alpha tester for Reddit Insights, leveraging the tool for clients such as The Hershey Company and Comcast to increase brand awareness, understand overall sentiment and engage on the platform.
“The new Reddit Insights tool has revolutionized how we understand and present brand sentiment, delivering authentic, real-time insights from Reddit that go beyond mentions to reveal what people genuinely love or want improved,” said Joel Lunenfeld, US CEO at Publicis Media Exchange.
“With intuitive visuals, audience discovery, and actionable analysis, it’s become an indispensable asset for campaign planning, client pitches, and performance tracking.”
Early testers of Conversation Summary Add-ons included Jackbox Games and Lucid, with the tool resulting in a 19% higher clickthrough rate than standard image ads.
Shares of Reddit had added 6.5% at about $135 on Tuesday afternoon.