Reddit’s ad credits aim to boost spend as ad revenue growth slows

Reddit has introduced seasonal ad credits to encourage advertisers to increase spend, following a decline in search referrals and a slowdown in ad revenue growth. The company’s Q3 2026 ad revenue reached $847 million, but growth slowed to 54% year over year, down from 74% in Q1 and 64% in Q2, according to company earnings reports. The dip in search referrals, attributed partly to Google’s AI search features, has made Reddit less attractive to some advertisers, according to Accuracast’s CEO.

Industry analysts say the slowdown in search traffic and ad revenue growth may not be directly linked, but both factors are making it harder for Reddit to compete with established channels like Meta. Marketers cite a lack of proof that Reddit can drive quality traffic and nurture it over the long term, with many still viewing the platform as a place for test-and-learn campaigns rather than full-funnel investment.

For regulated-industry CMOs, the challenge remains in justifying sustained spend without stronger measurement and evidence of year-round results. The next phase for Reddit will depend on whether it can improve its ad product and measurement capabilities to attract larger, ongoing budgets.