As it continues to put the final elements in place ahead of its coming IPO, Reddit has today announced its first Conversions API partner, with data management platform Tealium signing on to offer a more advanced Reddit analytics offering.
Tealium provides advanced data management solutions, and the integration with Reddit will facilitate more opportunities for brands to maximize their Reddit campaigns.
As explained by Reddit:
“Our Conversions API enables advertisers to directly connect their vetted and trusted partners with Reddit to seamlessly share conversion signals and data, while enhancing data efficiency and compliance through simplified measurement integrations. Aligning with Tealium, an industry-leading customer data platform, as our first Conversions API partner is the latest example of our commitment to empowering performance-focused advertisers with measurement solutions that drive business results.”
It’s the next step in Reddit’s plan to become a more serious business, ahead of its planned IPO, which will see Reddit priced at around $5 billion.
Though that’s below what Reddit had initially projected. But still, the launch of its IPO is a culmination of years of work to improve Reddit’s value as an ad platform, by providing more brand safety measures, and more accurate targeting and ad options, in order to improve its ongoing value, and maximize its listing.
The deal with Tealium is another step in legitimizing its ad offering, and facilitating broader use cases and assurance.
As per Tealium:
“Reddit's Conversions API provides a more accurate and streamlined way to track conversions, by leveraging data directly from your server instead of relying solely on client-side data. The combination of Tealium’s Customer Data Management and Reddit’s advertising solutions helps brands use omni-channel, consented first-party data to better target, measure, and optimize their campaigns.”
It’s difficult to project the platform’s long-term value, because while Reddit is growing, rising from 52 million DAU in 2021 to 70 million now, it’s still a long way behind other social apps in terms of ad value and focus.
Reddit’s changes, which have also seen it implement more rules around the types of content that can be shared, have also had some impact on engagement, and with these factors in mind, it’s difficult to know what to expect from the app, and how it will, or won’t, drive brand value.
But then again, Reddit has a lot of highly engaged, highly active, highly knowledgeable communities, and there is value in reaching these members, and enhancing brand value.
This new partnership is another step in facilitating more use cases for brands, and it’ll be interesting to see how Reddit looks to evolve its API offerings moving forward.