Reddit is making a change to its platform that will remove the ability for users to opt-out of personalized advertisements based on their activity. This change will be implemented over the next few weeks and does not indicate an increase in the frequency of ads, but rather aims to provide users with more targeted advertisements.
While Reddit has not yet confirmed which specific countries will still feature opt-out controls, the change is expected to enable Reddit’s models to better predict which ads will be most relevant to users. This enhancement will help brands reach higher-value consumers, increasing the effectiveness of their campaigns and improving cost-efficiency. Additionally, this change aligns with Reddit’s increased focus on monetization, as CEO Steve Huffman stated in June that reaching breakeven is a priority for the platform.
In addition to the removal of the opt-out feature, Reddit is also allowing users to see fewer ads from certain categories such as alcohol, dating, gambling, pregnancy, and weight loss. The platform is using a combination of manual tagging and machine learning to classify ads, and while the accuracy of this system may not be perfect initially, Reddit anticipates improvement over time.
Furthermore, Reddit is consolidating two toggles related to location preferences, making it easier for users to update and customize their feed and recommendations. However, it is unclear how these settings will impact post suggestions, and whether there will be an option to disable them.
Reddit’s head of privacy, known as “snoo-tuh” (Reddit does not disclose the identities of its admins), stated that the platform relies on on-platform activity rather than personal information to provide relevant advertisements. The majority of users will not see any change in their ads, and those who previously opted out of personalization based on Reddit activity will not see an increase in ads or have their on-platform activity shared with advertisers.
Overall, this change by Reddit aims to enhance the ability of its models to identify relevant audiences, making the platform more appealing to advertisers and improving the overall ad experience for users. The removal of the opt-out feature may lead to a more targeted advertising approach, benefiting brands and potentially increasing engagement and conversions.