Why Reddit's ad hiding feature isn't so bad for brands

Social media platform Reddit has introduced a new feature which allows its users to hide ads from their feeds. In a post seen on the Reddit Safety thread by an employee known as cozy_sheets, the function will be rolled out in an update from this week onwards.  

By clicking "hide" on an ad, future ads from the same advertiser account will be automatically muted for at least a year. After that period of time, users will have the option to re-hide the ad again.

This came amidst growing concerns of transparency in data use for targeted advertising, with the European Data Protection Board (EDPB) suggesting last year that Meta and other online platforms should give users the choice to use their services without targeted advertising.

The EDPB said that by offering users a choice between consenting to the processing of personal data for behavioural advertising purposes or paying a fee, known as the ‘consent or pay’ model, it will not be possible for large online platforms to comply with the requirements for valid consent. It also added that offering only a paid alternative to targeted advertising services should not be the default way forward for controllers. Instead, platforms should provide individuals with a free alternative without behavioural advertising which is an important factor in assessing valid consent under the General Data Protection Regulation (GDPR).

Don't miss: Meta should allow users to opt out of targeted advertising for free, says EU privacy watchdog

As Reddit hands users the power to hide unwanted ads, likely due to user feedback over quality, frequency and relevance, the question beckons, how will advertisers get their money's worth by spending on the platform?

Don't hate the player, or the game

Whilst on the surface this may seem strict towards advertisers, in reality, Sunny Johar, managing director of KRDS Southeast Asia said the new feature showcases the platform's focus on effectiveness over efficiency.

"By allowing brands to receive strong feedback from consumers based on ad quality, relevance and frequency, it will push advertisers to create more effective content."

"A common complaint when advertising on Reddit is the high volume of click-bots that make it extremely challenging to determine whether an ad is actually effective or not. By incorporating negative feedback mechanisms, Reddit will actually allow advertisers to gain deeper insights on their ad execution," she added. 

Echoing similar sentiments, Don Anderson, chief executive officer of Kaddadle consultancy said in theory, advertisers and users both stand to win in this situation. 

"Improved targeting should lead to less ad waste. Users have to expect that Reddit will ratchet up its advertising solutions as it seeks to attract more global, regional and local advertisers in order to match revenue growth expectations of shareholders," he said. 

In the long run, Rengeeta Rendava, founder and managing director of Mad Hat Asia, and Kim Chew, head of social media and community, SEA for Mad Hat Asia see the opt-outs to be great for optimising ad spend, forcing brands to be sharper with targeting instead of just throwing ads at the masses and hoping for the best.

At the end of the day, relevance beats reach.

More than just a placeholder

Inevitably as with any form of advertising, it is always much more than just the space booked itself, it is the intent and objective, the corresponding messaging and positioning, and what group it is targeted toward.

Anderson noted that most professionals should be sophisticated and educated enough by now to know this and be willing to spend time with a platform’s tools to be able to correctly identify the right audience and interests to construct an effective and performance-focused campaign.

"Otherwise, they’re just shooting blanks and creating additional waste, to no one’s benefit. If they get it right, then their work is more likely not to be considered irrelevant and intrusive and be blocked by users," he added. 

As Reddit is redefining the game with its new feature, Johar said the key is to create ads that users don't want to skip. 

"Reddit ads often miss the mark because they don’t feel native to the platform. Too many brands treat them akin to Google ads: formal, detached, and out of sync with how Reddit communities actually communicate. Instead of blending in organically, they stand out as obvious promotions, making them easy to ignore," she said. 

Know your playbook 

With several marketers treading the fine line between out-of-touch content and authentic connections with their audiences, how brands and advertisers can play the Reddit platform to their advantage is a million-dollar question.

The most successful brands on Reddit understand the culture, speak like real users, and craft content that feels like a natural part of the conversation, added Johar. "When ads feel like authentic posts rather than forced marketing, they gain traction. Frequency control is another factor—overexposure can be a turnoff, even for well-crafted ads. While engagement may not always translate into clicks, impressions still matter."

Meanwhile, Anderson said that to position any brands or businesses on any platform, marketers must spend time in it by sifting through conversations and looking at data points and recommendations. 

"The best marketers understand the importance of eating their own dog food, really know your brand but if you’re advertising on Reddit, that’s also your dog food. Get to know what it tastes like because if you don’t, the active Redditor community will come back and bite you," he said. 

By design Reddit is not a one-way street social platform; it’s a dialogue, for better or worse.

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