Reddit to test in-app search ads as Google traffic declines

Reddit, the social network and discussion platform, will soon begin testing advertisements in its internal search results. The company wants to earn revenue from users who rely on the site for buying advice and who show a high purchase intent. The move comes as Reddit faces growing pressure from a decline in traffic referred by Google.

In a blog post announcing the "initial test," Reddit said the ads would be shown based on "contextual relevance" and other factors. As an example, it said a search for "espresso station" could bring up ads for coffee-related products such as mugs, beans or espresso machines. Reddit did not say how often ads would appear, but screenshots it shared show them near the top of search results.

In the first phase of the test, only a limited group of advertisers will have access to the new format, although Reddit suggested it would expand over time. The company said it will evaluate how users respond to the ads so it can refine the experience for both users and advertisers.

Wider changes on the platform

The new ad format arrives alongside another shift: Reddit will restrict logged-out users from most of its content. The company said last week that Google's AI mode has caused significant declines in search traffic to the platform. CEO Steve Huffman said on the company's earnings call that a logged-in-only model would help improve ad targeting.

Both changes show how Reddit has increasingly had to alter longstanding features as AI disrupts parts of its business. The company has already locked down its developer platform and Old Reddit, its earlier site design, to combat scraping. Huffman said Reddit is the only platform that does not require logging in, adding that the site has evolved and that the change meets the needs of the time.