Reddit Ads helped our agency generate content downloads at a lower cost than LinkedIn for our B2B Client?
It might sound counterintuitive, but Reddit has proven to be a game-changer in lead generation—especially when you know how to navigate its unique ecosystem.
In our latest campaign, Reddit delivered 375 total ebook downloads at just $18.34 per conversion, outpacing LinkedIn’s $34 CPL.
That’s right: Reddit outperformed LinkedIn on cost while driving high-intent conversions. Here’s how the team at The Reddit Marketing Agency did it and why Reddit Ads deserve a spot in your marketing playbook.
Key Takeaways
Reddit’s Lower Cost Per Lead (CPL)Reddit delivered a CPL of $18.34, which is 46% cheaper than LinkedIn’s $34 CPL. This cost advantage highlights Reddit’s ability to drive high-intent leads while optimizing ad budgets effectively.
Higher Engagement with Niche TargetingBy focusing on subreddit communities like r/technology and r/OnlineEducation, campaigns achieved a 30% higher CTR compared to broader targeting. Customizing messaging for subreddit-specific pain points fostered trust and deeper engagement.
Crafting Authentic Ad CreativesAds with conversational headlines and Reddit-aligned humor saw a 15% higher CTR. Tailoring visuals and tone to subreddit cultures enhanced ad performance and user interaction.
Optimized Campaigns Drive ResultsLeveraging CPL bidding, custom retargeting, and A/B testing led to measurable improvements, including a 25% higher trial signup rate and 20% lower CPLs for retargeting campaigns.
r/PersonalFinance: A fintech campaign achieved a 30% higher CTR and 40% lower CPL.
r/ITSupport: SaaS reactivation campaigns delivered a 20% reactivation rate at half the cost of email outreach.
r/Parenting: A baby product brand drove a 35% increase in sales with AMA sessions and targeted ads.
Cost-Effectiveness Across PlatformsReddit’s CPC averages $0.61 compared to $1.50+ on LinkedIn, enabling advertisers to achieve higher returns with smaller budgets while maintaining quality engagement.
Reddit’s Unique Trust AdvantageWith 90% of users trusting Reddit for purchasing decisions, campaigns can tap into a highly engaged and credible environment, outperforming LinkedIn’s trust metrics.
Seamless Multi-Platform IntegrationReddit is most effective when integrated into broader strategies, complementing platforms like LinkedIn and Google Ads to drive top-of-funnel awareness and retargeting conversions.
Why Reddit for Lead Generation?
Reddit isn’t your typical ad platform. It’s a vibrant hub of niche communities where users actively engage in discussions and seek solutions with clear intent and interest.
This intent-driven environment allows advertisers to meet users at critical moments in their decision-making journey, making it fertile ground for lead generation—provided you play by Reddit’s rules of authenticity and relevance.
Organic Traffic & Search Visibility
Thanks to a $60M partnership with Google, Reddit is now a powerhouse in organic search. By July 2024, it ranked as the 3rd most visible site in Google U.S. search results and 9th globally, with over 3.5 billion visits in November 2024 alone.
Niche Targeting
Reddit’s 100,000+ active communities (subreddits) allow advertisers to pinpoint audiences with laser accuracy. Instead of casting a wide net, you can dive into conversations where your ideal customers are already engaged.
A SaaS company targeting r/technology users achieved a 5x ROAS by aligning their messaging with the subreddit’s technical focus. This involved highlighting key technical benefits and industry-specific use cases that resonated deeply with Reddit’s tech-savvy audience.
By addressing common challenges discussed in the subreddit—such as improving workflow automation—the campaign not only drove higher engagement but also fostered trust within the community.
The results included a 30% higher CTR compared to non-targeted campaigns and increased trial signups for their software.
Lower Competition, Higher Trust
Unlike LinkedIn, which can feel oversaturated, Reddit offers a less crowded advertising space where genuine engagement thrives.
With 90% of Reddit users viewing the platform as a trusted source for purchasing decisions—significantly higher than LinkedIn’s 59%—it’s clear that Reddit fosters an environment of authenticity.
This trust translates into higher user intent, as Reddit audiences are often mid-journey in their decision-making process, actively seeking advice, reviews, and solutions. For example, a fintech brand targeting r/PersonalFinance noted that users who interacted with their Reddit ads spent 25% more time exploring their website compared to leads from LinkedIn.
Cost-Effectiveness
Reddit's cost-per-click (CPC) rates typically range from $0.50 to $2, offering a cost-effective alternative to platforms like LinkedIn, where average CPCs are around $5.39.
In our campaigns, Reddit not only provided lower CPCs but also outperformed LinkedIn in cost per lead (CPL), delivering superior value for our advertising investment.
Our Campaign Strategy: How We Made Reddit Work
Targeting Niche Communities
Reddit’s strength lies in its subreddit ecosystem, which allows advertisers to focus on highly specific audiences already engaged in relevant discussions. Instead of broad targeting, we honed in on subreddits that matched our ideal customer profiles.
Targeted Subreddits:
We identified and selected communities in the tech and education spaces that aligned with the content of our ebook. For example, r/technology provided access to IT professionals and tech enthusiasts, while r/OnlineEducation attracted educators and learners interested in optimizing their workflows.
Community Insights:
Before launching ads, we studied each subreddit’s culture, rules, and top-performing posts. This helped us create ads that felt native and added value to the discussions, avoiding the backlash poorly aligned content often receives on Reddit.
Custom Audience Retargeting:
Using the Reddit Pixel, we retargeted users who interacted with our previous ads or visited our website. This strategy kept us top-of-mind for high-intent prospects, ensuring our messaging remained consistent as they moved through the funnel.
Proven Tactic:
A SaaS client targeting r/SmallBusiness achieved a 4x ROAS by tailoring their ads to address common pain points discussed in the subreddit, such as time management and cost reduction strategies. By engaging authentically, they not only improved ad performance but also saw an uptick in organic brand mentions within the community.
Key Insight: By aligning subreddit targeting with user behavior and preferences, you can maximize engagement while building trust and credibility within the community.
Crafting Engaging Ad Creatives
Reddit users are ad-savvy and skeptical of overly polished content. They value authenticity, relevance, and ads that feel like a natural extension of their browsing experience.
To connect authentically, we designed our creatives to align with Reddit’s tone and culture, while ensuring they delivered clear value.
Headlines & Copy:
Headlines are the first touchpoint, so we crafted them to resonate with subreddit-specific audiences. For example:
❌ "Download Our Free Ebook on Marketing"
✅ "Tired of Costly Google Ad Mistakes? This Free Ebook Has You Covered!"
✅ "Budgeting Tips They Should Teach in School: Get Our Free Guide Now!"
We also tailored our messaging to address pain points identified in subreddit discussions, such as “How to reduce CPC while scaling campaigns.”
Creative Formats:
🎯 Static Images: These showcased the ebook cover with a clear call-to-action, such as “Click here to simplify your ad strategy today!”
🎯 GIFs: Animated visuals were used to grab attention and communicate key benefits in a dynamic way.
🎯 Meme-Based Visuals: To align with Reddit’s humor-driven culture, we incorporated tasteful memes that tied into the campaign’s theme, driving higher engagement.
Tailored for Subreddits: Each ad was customized to the subreddit’s culture. For example, an ad in r/SmallBusiness used relatable scenarios like juggling multiple tasks, while an ad in r/PersonalFinance emphasized actionable savings tips.
A/B Testing: We tested multiple ad variations to identify what resonated most with each subreddit. For example:
Variation 1: Focused on direct benefits (e.g., “Save 20% on your ad spend”).
Variation 2: Used humor to engage (e.g., “Ad spend got you down? This guide is your lifeline!”).
Results: Ads with humor had a 15% higher CTR, while direct benefit ads performed better in driving conversions.
Key Insight: Reddit’s culture rewards creativity and authenticity. Ads that feel tailored to the platform’s tone not only capture attention but also build trust, leading to higher engagement and better results.
Optimizing for Conversions
Optimizing for conversions on Reddit requires a strategic approach that balances budget allocation, bid strategies, and clear goal-setting.
Here are best practices and insights to fine-tune your campaigns for maximum ROI:
Set Clear Goals:
Define specific objectives for each campaign. Are you aiming for signups, downloads, or purchases? Clear goals help Reddit’s algorithm optimize ad delivery effectively.
Example: A SaaS company running a free trial campaign targeted r/technology users with the goal of increasing trial signups by 20%. By specifying this objective, they achieved a 25% higher conversion rate.
Bid Strategies:
CPC Bidding: Best for driving traffic to landing pages. Ideal for campaigns focused on increasing awareness.
CPL Bidding: Optimized for high-quality leads. This strategy ensures that you only pay for meaningful actions, such as form submissions or ebook downloads.
Pro Tip: Start with CPC bidding during the testing phase, then switch to CPL once you’ve identified high-performing subreddits.
Budget Allocation:
Begin with a low daily budget to test ad performance across different subreddits and creative formats.
Gradually scale up budgets for ad sets that demonstrate strong engagement and conversion metrics.
Case Study: An eCommerce brand targeting r/Fitness initially allocated $50/day to test different messaging. Once they identified a winning ad, they scaled the budget to $500/day, achieving a 40% increase in conversions.
Landing Page Optimization:
Ensure landing pages load quickly and are mobile-friendly, as 95% of Reddit users access the platform via mobile.
Align landing page content with your ad copy for a seamless user experience.
Include clear CTAs and minimize distractions to drive users toward the desired action.
Example: A fintech brand reduced their bounce rate by 30% after revamping their mobile landing pages to emphasize quick access to free tools.
Audience Retargeting:
Use the Reddit Pixel to retarget users who interacted with your ads but didn’t convert. These high-intent users are more likely to take action upon seeing follow-up messaging.
Insight: Retargeting campaigns on Reddit have shown to deliver a 20% lower CPL compared to first-touch campaigns.
A/B Testing:
Experiment with different headlines, creatives, and CTAs to identify what resonates best with your audience.
Test ad delivery times to determine when your target audience is most active.
Result: A B2B client saw a 15% increase in CTR by testing humor-driven CTAs against direct benefit-focused messaging.
Key Insight: Optimization isn’t a one-time activity. Continuously monitor campaign performance and adjust strategies based on data to maintain and improve results.
Performance Breakdown: Reddit vs. LinkedIn
To understand Reddit’s potential, we compared its performance to LinkedIn. Here’s what we found:
Metric | ||
CPL | $18.34 | $34 |
CTR | 0.43% | 0.38% |
CPC | $0.61 | $1.50+ |
Total Conversions | 375 | 168 |
Total Spend | $6,8775.5 | $5,712 |
Key Insights:
Reddit’s CPL was 46% cheaper than LinkedIn, demonstrating a significant cost advantage for advertisers prioritizing budget efficiency.
Reddit Ads had a higher CTR (0.43% vs. 0.38%), demonstrating better engagement compared to LinkedIn. This difference in CTR highlights how Reddit’s community-focused approach drives higher click-through rates, particularly when targeting niche subreddits where users are actively engaged in discussions relevant to the ads.
CPC was significantly lower on Reddit, allowing us to stretch our budget further.
Case Studies: What Makes Reddit Ads Shine?
Case Study 1: Driving Ebook Downloads in r/PersonalFinance
Objective: A fintech company aimed to increase ebook downloads by targeting users actively seeking budgeting solutions.
Strategy: The campaign focused on r/PersonalFinance, a subreddit where users discuss financial management and budgeting. The ad copy highlighted actionable benefits, such as "Master your budget in 10 steps with this free guide," while visuals included relatable scenarios like managing monthly expenses.
Results:
Achieved a 30% higher CTR compared to Facebook Ads.
Reduced CPL by 40%.
Sparked organic conversations in the subreddit, with users sharing their experiences and linking the ebook in related threads, amplifying visibility without additional ad spend.
Case Study 2: Reactivating Dormant Users in r/ITSupport
Objective: A SaaS company sought to re-engage churned users who had previously subscribed but didn’t renew their licenses.
Strategy: Ads were tailored to address specific pain points discussed in r/ITSupport, such as outdated software or the need for automation. Messaging focused on new features and exclusive renewal discounts, while the creatives included demo videos showcasing enhanced functionality.
Results:
Achieved a 20% reactivation rate at half the cost of email campaigns.
Increased website dwell time by 35% as reactivated users explored additional product offerings.
Generated positive subreddit engagement, where users discussed the benefits of the updates, further validating the campaign’s messaging.
Case Study 3: Engaging Niche Audiences in r/Parenting
Objective: A baby product brand aimed to boost awareness and sales by connecting with new parents.
Strategy: The brand combined AMA sessions hosted by parenting experts with community-targeted ads in r/Parenting. Ads included playful and relatable taglines like "Parenting hacks you didn’t know you needed!" alongside carousel visuals demonstrating product usage.
Results:
Achieved a 50% increase in website traffic, with a significant portion driven by users interacting with AMA discussions.
Realized a 35% rise in sales, particularly for bundled offers promoted during the campaign.
Gained long-term visibility, as the AMA session was referenced in subsequent discussions, driving recurring organic traffic months after the campaign ended.
Objective: A fintech company aimed to increase ebook downloads.
Strategy: Targeted r/PersonalFinance with ads emphasizing budgeting tips and free resources.
Results:
30% higher CTR compared to Facebook Ads.
Reduced CPL by 40%.
Should You Use Reddit Ads for Lead Generation?
Reddit Ads are a cost-effective and powerful tool for promoting ebooks, whitepapers, and other content assets. By leveraging subreddit targeting, engaging creatives, and optimized bidding, we converted Reddit users into leads at a competitive cost.
That said, Reddit isn’t a standalone solution. To maximize results, integrate Reddit into a multi-platform strategy, combining its strengths with platforms like LinkedIn and Google.
Thinking of running your own Reddit Ads?
Let’s connect. With the right approach, Reddit could become your secret weapon for lead generation. Contact Us.
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