Reddit published a new report that examines how CPG brands can reach target audiences with Reddit promotions. This comes as more people visit the platform seeking information as part of their discovery process.
Reddit has become a key resource for product insights, with the app seeing a 40% year-over-year increase in the number of high-intent shopping conversations on the platform, according to a recent press release.
This presents more opportunities for brands, and Reddit said product conversations continue to rise within subreddit communities.
As per Reddit: “Over the last six months, the U.S. alone saw over 3.1B grocery shopping conversations. From ‘which oat milk actually tastes best’ to ‘what’s the right food for a new puppy,’ shoppers are using Reddit to crowdsource real opinions at every stage of the journey.”
Reddit’s report, created in partnership with Attain, shows that Reddit delivers stronger lifetime value across every major CPG category over a five-year horizon.
“Reddit shoppers consistently generated higher post-acquisition value across every category, including 15% in beverage, 14% in food and 17% in personal care and beauty,” the report said.
Lifetime value in this context reflects the total projected value that a buyer is expected to generate over a five-year span, beginning from the point of their first purchase in the category.
In other words, consumers who are conducting research on Reddit are more likely to make expanded purchases within each category, underlining the importance of connecting with them to build that initial brand relationship.
The data also showed that Reddit users spend 22% more on their pets, 17% more on their food and 12% more on their beauty products than non-users.
Essentially, Reddit users are likely to spend more, and across more categories, based on the research and insights they glean from the app.
Reddit also referenced another study, conducted by Circana, which showed that Reddit delivers meaningfully higher returns for CPG advertisers, outperforming other social platforms across the U.S. and Western Europe.
“On average, Reddit generates 1.5x higher ROAS for CPG advertisers vs. other social platforms,” the report said.
The data suggests that Reddit could be a key promotional platform for CPG brands, putting brand promotions in front of consumers at just the right time within their discovery process, which could help to drive more sales activity as a result.
