Reddit tests ads in search results as traffic declines and growth concerns mount – TechCrunch

Buy One Founder Summit Ticket, Get a Second for Free. Register now.Founder Summit begins Nov. 4, 9:00 a.m. ET. Get your pass savings & deals before it starts. REGISTER HERE. Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Contact Us Just days after warning investors about declining search traffic and a weaker-than-expected revenue forecast, Reddit is looking for more ways to make money from its existing users. On Tuesday, the company announced that it’s beginning to test ad placements in its search results pages, allowing advertisers to reach users as they search for products, recommendations, and other information on its platform.“Ads in search may appear based on a range of factors, including contextual relevance to a user’s search query,” Reddit shared in its announcement about the new ad placements. “This is an initial test with a select group of eligible advertisers. 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 offered examples of what sort of ads might appear, suggesting that a search for “espresso station” might display ads for espresso machines, coffee, or mugs, while a search for “home office setup” could surface ads for things like monitors, desks, and office chairs.The ad test comes at a time when Reddit is reckoning with how AI has been changing the web’s landscape, and subsequently its reach. Despite beating Wall Street’s estimates for revenue and earnings per share, the company’s stock dropped after it reported its third-quarter results last week, with fourth-quarter guidance that predicted sales of $1 billion to $1.03 billion, below expectations of $1.05 billion. This was tied to Reddit’s declining search traffic referrals resulting from Google’s move to an AI-powered search experience. AI search now sends less traffic to publishers’ websites, as features like AI Mode provide answers directly on Google’s Search Result pages, reducing clicks to other websites.Reddit also said that its global daily active users were flat quarter-over-quarter in Q3, reaching 130.3 million, while U.S. daily active users dropped from 53.2 million in Q2 to 50.7 million in the quarter, and were down 2% year-over-year. The company noted that if the trend continues, daily active users could decline to a low double-digit percentage by the fourth quarter.This leaves the company needing to earn more revenue from its existing users, which is where these new ads come in. The ads could prove to be more valuable to Reddit after it makes its planned shift to a logged-in experience, which was also announced during earnings. The company said it will make the transition gradually, initially in markets outside the U.S.The decision to limit its content to logged-in users serves multiple purposes — it protects Reddit’s site from unauthorized AI scraping, and it increases its value to advertisers. Logged-in users are worth more to advertisers because they provide additional signals about their interests and behavior, allowing for better-targeted, more profitable ads.TopicsWhen you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence. Consumer News Editor Buy One Pass, Get a Second FreeCover more ground at TechCrunch’s ultimate founder bootcamp of the year by bringing your co-founder or partner for freeBook before the BOGO deal expires Anthropic warns that it’s very close to RSI capability, aka self-building AI New York Times and other outlets sue web browser Brave over alleged content scraping Anthropic expected to receive high ‘junk’ rating from credit agencies following IPO, FT report says Google’s first data center satellite is online and writing poetry Binance pauses withdrawals as hackers suspected of stealing billions in crypto As search traffic dries up, Reddit announces it’s shifting to a logged-in experience Ex-Palantir execs launch Dream with $17M from a16z to build AI world models for construction © 2026 TechCrunch Media LLC.source