Reddit Tests In-App Search Ads as Google Traffic Declines

A limited first phase

Only a limited group of advertisers will have access to the format at first, but Reddit suggested the ads will expand over time. "During this test, we will evaluate and understand how users respond to these ads so we can refine the experience for users and advertisers over time," the company said.

Pressure from AI

The test arrives as Reddit reshapes how its platform works. Last week the company said Google's AI mode has caused significant declines in search traffic to Reddit. It also plans to restrict logged-out users from most of its content. CEO Steve Huffman said a logged-in-only model would help improve ad targeting.

Reddit has already locked down its developer platform and Old Reddit to combat scraping. On last week's earnings call, Huffman said, "At this point, we're the only platform that doesn't do this," adding that Reddit "has just evolved so much that I think this just meets the needs of the time."

For advertisers, search ads offer a way to reach shoppers at the moment they are researching a purchase. For users, the changes show how AI is pushing Reddit to change long-standing features and find new revenue inside its own app.