The news: Reddit used the first day of CES to roll out Max Campaigns, a new AI-powered, automated buying option now in beta, as the platform’s ad business accelerates.
- Max campaigns use Reddit “community intelligence” and machine learning to dynamically optimize targeting, creative rotation, placements, and budgets based on the estimated value of each impression; the offering can also generate platform-native creative.
- Reddit is positioning the product as automation with visibility. Advertisers retain access to creative insights, audience learnings, and performance signals rather than operating inside a black box.
- More than 600 advertisers participated in the alpha test; in split tests, Max campaigns delivered 17% lower CPA and 27% higher conversions versus standard campaign setups.
Why it matters: Reddit’s product push coincides with rapid growth in both user activity and ad spend.
- Daily active uniques rose 19% YoY in Q3 2025.
- US ad spending on Reddit rose 46.3% YoY as of November 2025, per Sensor Tower, outpacing every major social platform, and ad conversions more than doubled in Q3 2025, according to company data.
- That momentum is translating into revenues. We forecast Reddit’s US ad revenues will increase from $1.36 billion in 2025 to $2.06 billion by 2027, more than doubling in four years, while still representing only about 1.5% of total US social ad spend.