Reddit Advertising Cost: Full Breakdown of Pricing

Reddit is one of the most underrated ad platforms out there. Most marketers skip it because they assume it’s expensive or too complicated. 

The truth is the opposite. Reddit ads can be extremely affordable if you know how the pricing works and how to target the right communities.

This guide gives you a clear, easy-to-understand breakdown of Reddit advertising costs, how the bidding system works, examples of CPMs you can expect, and how to set the right budget based on your goals.

Let’s start with the simple answer.

Quick Answer: How Much Does Reddit Advertising Cost?

Reddit ads typically cost:

• $0.50 to $3.00 CPM for Promoted Posts
• $2.00 to $8.00 CPM for Video Ads
• $5.00 to $10.00 CPM for Display Ads

Reddit also has one of the lowest minimum bids in the industry. You can start at $0.20 CPM, depending on competition.

Most brands begin with $10 to $20 per day when testing audiences. You can run real experiments at a very low cost, especially in niche subreddits.

If you want extremely targeted impressions- for example, in r/SaaS, r/Entrepreneur, or r/Fitness, expect to pay more because of competition. But even then, Reddit stays cheaper than Meta or LinkedIn for most niches.

Types of Reddit Ads and Their Costs

Reddit offers a few ad formats, and each comes with different costs and best-use scenarios. Here’s the quick breakdown.

1. Promoted Posts

These appear inside subreddit feeds and feel like regular posts. Promoted Posts give you the most natural visibility on Reddit. They blend in well, and users often comment, upvote, or ask questions.

• Average CPM: $0.50 to $3.00
• Best for: engagement and reaching niche communities
• Why they work: users interact with them as if they’re normal content

2. Display Ads

These are the banner-style or sidebar ads shown across Reddit. These are good if you’re trying to get your brand in front of a massive audience quickly.

• Average CPM: $5.00 to $10.00
• Best for: wide brand awareness
• Why they work: large reach across the entire platform

3. Video Ads

Auto-play videos that grab attention as users scroll. Short, engaging videos tend to perform best here.

• Average CPM: $2.00 to $8.00
• Best for: products that need visuals or storytelling
• Why they work: Reddit users actually watch ads when they feel relevant

4. Carousel Ads

Multiple images or steps in one ad. Carousels are great for SaaS features, product benefits, or ecommerce items.

• Average CPM: usually $1.00 to $4.00
• Best for: showing features, steps, or product variations

How Reddit Ad Pricing Works

Reddit ads follow a pricing system that rewards good targeting and relevance, so understanding how it works helps you spend smarter.

Reddit Charges You Based on CPM

Reddit uses a cost-per-1,000-impressions model, which means you pay for every thousand times your ad is shown. You’re not charged for clicks or conversions, only for visibility. This makes Reddit cost-effective if your main goal is brand awareness. It works especially well for brands trying to introduce themselves to niche communities.

You Control Your Bid, Budget, and Targeting

You decide who you want to reach, how much you want to spend, and what your ad will look like. Your bid tells Reddit the maximum you’re willing to pay for impressions. Your targeting tells Reddit who should see your ad. The platform then uses this information to place your ad where it’s most likely to perform well.

Relevant Ads Get Priority Over High Bids

Reddit doesn’t only reward the highest bidder. It rewards ads that make sense for the audience. If your ad fits the subreddit’s interests and users respond positively, Reddit may show it more often even if someone else is bidding higher. This means thoughtful creatives and good targeting can help you beat big-budget competitors.

The Auction System Determines Placement

Reddit runs a live auction every time a user loads a page. Your ad competes with others that are targeting similar audiences. The algorithm compares your bid and your ad’s expected performance to decide who wins the placement. Ads that are relevant or likely to get engagement often win cheaper placements.

Strong Creatives Reduce Your Costs

If your ad gets clicks, comments, saves, or even upvotes, Reddit sees it as a good experience for users. When an ad performs well, Reddit rewards it with lower CPMs because it keeps the platform healthy. This is why simple, genuine, community-fit creatives often perform better than overly polished ad-style posts.

Narrow or Competitive Targeting Increases CPM

If you target very small subreddits or highly competitive niches (like finance or tech), your CPM naturally rises because many advertisers are chasing the same audience. Broader interest categories or niche-but-active subreddits tend to cost less. The more flexible you are with targeting, the more stretch you get from your budget.

Minimum Bid Requirements

Reddit sets a minimum bid to keep the system competitive. If you target popular subreddits like r/technology, r/Investing, or r/DIY, you’ll pay more because more advertisers are bidding too:

• Minimum CPM: starts at $0.20
• Popular subreddits: may require $2.00+ bids
• High-competition niches: may require even higher bids during peak times

Factors That Influence Reddit Ad Cost

Your CPM increases when:

• your targeting is too narrow
• you’re advertising in highly competitive subreddits
• your ad isn’t relevant
• you’re bidding too low during peak hours
• your creative gets poor engagement

Your CPM decreases when:

• you target niche subreddits
• your ad gets good engagement
• your bid is fair
• your creative matches the subreddit tone

How Targeting Impacts Your Cost

Targeting plays a huge role in how much you end up paying for Reddit ads, and choosing the wrong approach can quickly increase your CPM.

Subreddit Targeting

Subreddit targeting is the most precise, and usually the most expensive option. You’re reaching users inside very specific communities, which means competition for impressions is higher. For example, ad costs in r/SaaS often fall between $2 and $5, r/Fitness ranges from $1.50 to $4, r/Entrepreneur from $2 to $6, and r/Technology can climb to $4 to $8. The more popular the subreddit, the higher the cost.

Interest-Based Targeting

Interest-based targeting is broader and usually cheaper because you’re not competing inside a single subreddit. Instead, Reddit shows your ads to people who follow certain topics across the platform. This approach works well for awareness campaigns but is less effective when you need very specific or conversion-focused targeting.

Device Targeting

Reddit is heavily mobile-driven, so mobile-only targeting often gives you lower CPM compared to desktop. Mobile users scroll more, engage more casually, and generate a higher volume of impressions, which helps bring down your cost. If your ad format is simple and visually clear, mobile targeting can stretch your budget further.

Location Targeting

Location targeting can also affect your CPM, especially if you’re focusing on competitive countries. Regions like the United States, the United Kingdom, and Canada tend to have higher CPM because advertisers aggressively target users in these markets. Expanding to additional countries or including broader regions often brings down cost significantly.

Reddit Ad Costs by Industry

Here’s what you can expect on average:

Industry	Average CPM	Notes
SaaS	$2–$5	More competition in B2B subs
E-commerce	$1–$3	Strong performance in lifestyle subs
Fitness & Wellness	$1–$4	Highly engaged audience
Gaming	$1–$3	Popular niche, affordable CPM
Finance	$4–$10	High competition, expensive subs
Education	$1–$3	Great for course creators
Tech Products	$3–$7	Tech subs are competitive

Comparisons with Other Platforms

Below is a quick comparison of Reddit’s ad costs versus other major advertising platforms. This helps you understand where Reddit sits in terms of pricing and strengths:

Platform	Typical CPM Range	Strengths
Reddit	$0.50–$10.00	Highly engaged, niche community audiences
Facebook	$5.00–$15.00	Strong targeting options and massive reach
Google Ads (Display)	$2.00–$20.00	High-intent traffic driven by search behavior
LinkedIn	$6.00–$20.00	Best for B2B and professional audience targeting

How Much Should You Actually Spend?

If you’re new to Reddit ads, the safest approach is to start small and learn before scaling. 

A budget of $100 to $300 is enough to test a few creatives, experiment with targeting, and see how different subreddits respond. 

Once you have early data, moving into the $500 to $1,000 range lets you run multiple ads, compare performance, and optimize confidently. Larger campaigns, launches, or multi-week pushes usually perform best with $1,000+, since you can combine formats and test more aggressively. 

The goal isn’t to spend big, it’s to spend smart, gather insights, and scale only when the results prove it’s worth it.

How to Reduce Reddit Advertising Cost

Here are methods that always lower CPM:

• Target niche subreddits instead of huge ones

• Use clean, simple ad creative

• Match your tone to the subreddit

• Use short text + curiosity-driven headlines

• Test multiple creatives

• Start with a medium bid, then adjust

• Avoid over-targeting

• Use mobile-only campaigns

• Keep your ads fresh (Reddit punishes ad fatigue)

Conclusion

Reddit advertising is one of the most cost-effective ways to reach niche, engaged communities. With CPMs starting at just a few cents and powerful targeting options, you can test ideas, run campaigns, and reach passionate audiences without needing a huge budget.

Start small, test often, and let Reddit’s community-driven culture guide your content. Once you understand what resonates, Reddit becomes one of the highest-ROI channels you can use.

Useful Links:

1. Budgets and Bidding – Reddit Help
2. Reddit Advertising Cost: How Much Does It Cost to Advertise on Reddit?