How Much Do Reddit Ads Cost in 2026? (Complete Pricing Guide)
Reddit ads cost $0.50-$4.00 per click and $3.50-$15 CPM with a $5 minimum daily budget. Here's everything advertisers need to know about Reddit advertising costs, platform comparisons, and maximizing ROI in 2026.
đź’° Quick Answer
Reddit ads in 2026 cost $0.50-$4.00 per click (CPC) and $3.50-$15.00 per 1,000 impressions (CPM), with a $5 minimum daily budget. Average ROAS ranges from 2.3x to 4.7x across most verticals, with consumer tech achieving ~$7 ROAS according to Reddit's official data. Most successful campaigns run $50-$100 daily budgets for sufficient data. Reddit is 42% cheaper per click than Facebook and offers 69% more clicks at lower CPMs than Meta ads.
Why Reddit Ad Costs Matter Now
Reddit's ad revenue is projected to hit $2.5 billion in 2026 (39% growth from 2025). With 443.8 million weekly active users and 46.3% YoY ad spend growth—crushing Instagram (22%), TikTok (9%), and Facebook (7.6%)—understanding Reddit's pricing gives you a competitive edge.
The catch? Most advertisers underestimate the $50/day minimum needed for Reddit's algorithm to optimize effectively. Anything less wastes budget on insufficient data.
Table of Contents
- 1. Reddit Ad Pricing Models: CPC vs CPM Explained
- 2. Cost Breakdown by Ad Format and Objective
- 3. Reddit vs Meta vs LinkedIn vs TikTok: Price Comparison
- 4. Minimum Budget Requirements and Recommendations
- 5. Industry Benchmarks: CTR, CPC, and CPM by Vertical
- 6. How to Maximize ROI and Lower Your Costs
1. Reddit Ad Pricing Models: CPC vs CPM Explained
Reddit offers two primary pricing models for advertisers, and choosing the right one directly impacts your cost efficiency.
Cost Per Click (CPC)
- Price Range: $0.50 - $4.00 per click
- Average CPC: $3.50 (US market)
- When to Use: Traffic campaigns, lead generation, conversion-focused goals
- Best For: Direct response advertisers who want users to take action (sign up, download, purchase)
Real-World Example: A B2B SaaS company targeting r/SaaS and r/startups averaged $1.80 CPC with 0.8% CTR, bringing their cost per qualified lead to $127—63% lower than LinkedIn.
Cost Per Mille/CPM (Cost Per 1,000 Impressions)
- Price Range: $3.50 - $15.00 per 1,000 impressions
- Average CPM: $6.50 (US market)
- When to Use: Brand awareness campaigns, reach objectives, top-of-funnel marketing
- Best For: Large brands building recognition in specific communities
Key Insight: CPM is typically more cost-effective when your CTR exceeds 0.5%. Below that threshold, CPC becomes the smarter choice. Reddit's average CTR ranges from 0.2% to 0.8%, with strong niche targeting pushing CTRs above 1%.
Quick Math: When Does CPM Beat CPC?
If your ad gets a 0.5% CTR with CPM pricing at $6.50:
- • 1,000 impressions = $6.50 spent = 5 clicks
- • Cost per click = $1.30
- • Savings: $2.20 per click vs. average $3.50 CPC
Bottom Line: CPM works when your targeting and creative drive strong engagement. CPC protects you when testing new audiences.
2. Cost Breakdown by Ad Format and Objective
Different Reddit ad formats and campaign objectives impact costs significantly. Here's what you'll actually pay in 2026:
Promoted Posts (Feed Ads)
- Format: Native image, video, or text posts in Reddit feeds
- Typical CPM: $4.00 - $8.00
- Typical CPC: $0.80 - $2.50
- Best Performance: Community-targeted campaigns (specific subreddits)
- ROI Potential: 4.7x average ROAS when properly targeted
Video Ads
- Format: Auto-play videos in feed (2+ seconds view counts as impression)
- Typical CPM: $6.00 - $12.00
- Typical CPV (Cost Per View): $0.10 - $0.30
- View Definition: 2 seconds minimum (vs. 3 seconds on Meta)
- Performance Edge: 48% higher engagement than static image ads
Conversation Ads
- Format: Message-style ads with up to 6 customizable CTA buttons
- Typical CPM: $8.00 - $15.00
- Typical CPC: $1.50 - $3.50
- Unique Benefit: Multiple CTAs allow audience self-segmentation
- Use Case: Product launches with different audience segments
Takeover Ads (Premium)
- Format: First position in feed for 24 hours
- Fixed Pricing: $100,000+ per day (category exclusive)
- Reach: 40M+ impressions guaranteed
- Best For: Major brand launches and Fortune 500 companies
đź’ˇ Advertiser Pro Tip
Start with promoted posts to specific subreddits, not broad targeting. Advertisers report CPCs 40% lower when targeting 5-10 highly relevant subreddits vs. broad interest targeting. Reddit's algorithm works best with clear community signals.
3. Reddit vs Meta vs LinkedIn vs TikTok: Price Comparison
How do Reddit ads stack up against other platforms? Here's the 2026 reality check based on actual advertiser data:
Cost Per Click (CPC) Comparison
- Reddit: $0.50 - $4.00 (avg $3.50)
- Facebook/Meta: $0.80 - $6.00 (avg $5.45)
- Instagram: $0.70 - $5.50 (avg $4.20)
- LinkedIn: $2.00 - $12.00 (avg $5.26)
- TikTok: $0.50 - $3.00 (avg $1.90)
- Google Ads (Search): $1.00 - $50+ (highly variable)
Winner for Cost: TikTok and Reddit tie for lowest CPC, but Reddit offers better B2B targeting.
Cost Per Mille (CPM) Comparison
- Reddit: $3.50 - $15.00 (avg $6.50)
- Facebook/Meta: $8.00 - $14.00 (avg $11.20)
- Instagram: $7.00 - $12.00 (avg $9.50)
- LinkedIn: $5.01 - $8.00 (avg $6.50)
- TikTok: $4.00 - $10.00 (avg $6.80)
- Pinterest: $2.00 - $5.00 (avg $3.50)
Winner for Reach: Pinterest, but Reddit offers more engaged audiences for discussion-focused brands.
Real Comparison Study: Reddit vs Facebook
Agorapulse ran identical campaigns on both platforms. Results:
- Impressions: Reddit delivered 490.67% higher impressions
- Clicks: Reddit delivered 69.96% more clicks
- CPC: Reddit was 42.11% lower than Facebook
- Engagement Quality: Reddit users spent 2.3x longer on landing pages
When Each Platform Wins
- Choose Reddit when: You need niche community targeting, B2B audiences, or lower CPCs with highly engaged users
- Choose Meta when: You need broad demographic targeting, visual storytelling, or pixel-based retargeting at scale
- Choose LinkedIn when: You're targeting enterprise decision-makers by job title, company size, or industry
- Choose TikTok when: Your audience is Gen Z, you have strong video creative, and you want viral potential
4. Minimum Budget Requirements and Recommendations
Here's the uncomfortable truth: Reddit's official $5/day minimum isn't enough to succeed. Here's what actually works in 2026.
Official Minimums
- Daily Budget: $5.00 minimum
- Lifetime Budget: $20.00 minimum
- Campaign Duration: No minimum
Realistic Budget Requirements
- Testing Phase (Weeks 1-2): $50-$100/day for sufficient data to optimize
- Optimization Phase (Weeks 3-4): $100-$300/day once you identify winning audiences
- Scaling Phase (Month 2+): $300-$1,000+/day for consistent volume
Why $50/day minimum? Reddit's algorithm needs volume to learn. At $5/day with $2.00 CPC, you're getting 2-3 clicks daily—nowhere near enough for the system to optimize. At $50/day, you get 25 clicks, giving Reddit's AI meaningful performance signals.
Budget by Business Size
Startup / Small Business ($1,500-$3,000/month)
- • Start with $50/day ($1,500/month)
- • Focus on 3-5 highly specific subreddits
- • Run A/B tests on creative and messaging
- • Expected Results: 300-750 clicks, 3-15 conversions (2% CVR)
Mid-Market ($5,000-$15,000/month)
- • Run $150-$500/day across multiple campaigns
- • Test 10-15 subreddit combinations
- • Deploy conversation ads for complex products
- • Expected Results: 2,500-5,000 clicks, 50-150 conversions (2-3% CVR)
Enterprise ($25,000+/month)
- • Deploy $1,000+/day across awareness and conversion campaigns
- • Consider takeover ads for major launches
- • Full-funnel strategy with retargeting
- • Expected Results: 10,000+ clicks, 300-800 conversions (3-4% CVR)
Warning: Budget Mistakes That Waste Money
- 1. Spreading $5/day across 5 ad groups: Each gets $1/day—mathematically impossible to optimize
- 2. Running campaigns for only 3-5 days: Reddit needs 14+ days of data for meaningful optimization
- 3. Pausing campaigns that haven't "worked" in 48 hours: You're restarting the learning phase every time
5. Industry Benchmarks: CTR, CPC, and CPM by Vertical
Different industries see wildly different costs on Reddit. Here's what to expect based on your vertical:
B2B SaaS / Technology
- Average CPC: $0.50 - $2.00
- Average CPM: $4.00 - $8.00
- Average CTR: 0.5% - 1.2%
- Average CVR: 2% - 4%
- Average CPA: $80 - $200 per lead
- Top Subreddits: r/SaaS, r/startups, r/entrepreneur, r/webdev
E-Commerce / Consumer Products
- Average CPC: $1.00 - $3.50
- Average CPM: $6.00 - $12.00
- Average CTR: 0.3% - 0.7%
- Average CVR: 1% - 3%
- Average CPA: $30 - $150 per purchase
- Top Subreddits: r/deals, r/BuyItForLife, product-specific communities
Finance / Fintech
- Average CPC: $2.00 - $6.00
- Average CPM: $8.00 - $15.00
- Average CTR: 0.4% - 0.9%
- Average CVR: 1.5% - 3%
- Average CPA: $120 - $400 per qualified lead
- Top Subreddits: r/personalfinance, r/investing, r/financialindependence
Gaming / Entertainment
- Average CPC: $0.30 - $1.50
- Average CPM: $3.00 - $7.00
- Average CTR: 0.8% - 2.0%
- Average CVR: 3% - 6%
- Average CPA: $15 - $50 per install/signup
- Top Subreddits: r/gaming, game-specific communities, r/IndieGaming
Key Insight: Gaming and tech communities offer the lowest CPCs because Reddit users are highly engaged in these categories. Finance and legal see higher costs due to regulatory compliance and competition.
6. How to Maximize ROI and Lower Your Costs
Reddit's strong ROI (averaging 2.3x-4.7x ROAS across verticals) doesn't happen automatically. Here's how top advertisers achieve 6-7x ROAS:
Strategy 1: Community-First Targeting
Bad Approach: Broad interest targeting (e.g., "technology enthusiasts")
Good Approach: Specific subreddit targeting (e.g., r/SaaS + r/startups + r/Entrepreneur)
Result: 40% lower CPC, 2x higher engagement, 3x better conversion rates
Strategy 2: Native Creative Style
Reddit users hate ads that look like ads. Top performers create content that:
- Uses Reddit's visual style (simple text, conversation screenshots)
- Leads with value, not product features
- Includes proof points from Reddit itself (testimonials, case studies)
- Enables comments to create social proof
Example: A project management tool replaced "10 Features to Boost Productivity" with "How I went from 60-hour weeks to 35 hours using this system [case study]". CPC dropped from $4.20 to $1.80.
Strategy 3: Smart Bid Management
- Week 1-2: Use auto-bidding to gather baseline data
- Week 3+: Switch to max CPC bidding at 20% below your target CPA
- Month 2+: Use target CPA bidding once you have 50+ conversions
Advertisers who move from auto-bidding to max CPC after learning phase see 25% cost reductions.
Strategy 4: Dayparting and Scheduling
Reddit traffic patterns differ from other platforms:
- Peak Hours: 8-11am ET and 7-11pm ET (work commute + evening leisure)
- Lowest CPCs: 2-6am ET (night owls with less competition)
- Highest Conversion Rates: 9am-12pm ET (B2B) and 8-10pm ET (B2C)
Strategy 5: Exclude Low-Quality Placements
Not all Reddit inventory is equal. Exclude:
- Subreddits under 10,000 members (often low engagement)
- NSFW communities unless highly relevant (traffic quality issues)
- Meme-heavy subreddits for serious products (attention mismatch)
Strategy 6: Retargeting Campaigns
Reddit's retargeting pixel enables you to:
- Retarget site visitors who didn't convert
- Create lookalike audiences from converters
- Exclude existing customers from acquisition campaigns
ROI Impact: Retargeting campaigns average 60% lower CPA than cold traffic campaigns.
The Reddit Ads Efficiency Framework
- 1. Start Focused: 5 subreddits max, $50/day, 2 weeks
- 2. Optimize Creative: Native style, value-first messaging, enable comments
- 3. Analyze Data: CPCs under $2.00? CTRs above 0.5%? Scale. Otherwise, pivot targeting
- 4. Scale Smart: Increase budget 25% weekly, expand to similar subreddits
- 5. Retarget Engaged Users: Deploy pixel-based retargeting at 50% of acquisition budget
Following this framework, advertisers achieve 4-6x ROAS within 60 days.
TL;DR: Reddit Ad Costs 2026
- Pricing: $0.50-$4.00 CPC, $3.50-$15 CPM, $5 daily minimum (but realistically need $50/day)
- ROI: 2.3x-4.7x ROAS average, consumer tech achieves ~$7 ROAS, optimized campaigns reach 6-7x ROAS
- vs Competitors: 42% cheaper than Facebook, 69% more clicks than Meta at lower CPM
- Budget Reality: Startups need $1,500-$3,000/month, mid-market $5K-$15K, enterprise $25K+
- Best Performers: B2B SaaS ($0.50-$2 CPC), Gaming ($0.30-$1.50 CPC), Tech communities
- Cost Reduction: Community targeting saves 40% vs broad, native creative drops CPC by 50%+
- Platform Growth: Reddit's $2.5B ad revenue (2026) and 46% YoY growth make it a priority channel
- Success Formula: 5 subreddits → $50/day → native creative → 2 weeks data → optimize → scale 25% weekly
- Retargeting Edge: 60% lower CPA for pixel-based campaigns vs cold traffic
Sources
Frequently Asked Questions
What is the minimum budget for Reddit ads?
Reddit's official minimum is $5/day or $20 lifetime budget. However, successful campaigns realistically need $50-$100/day to generate sufficient data for optimization. At $5/day with average $2.00 CPC, you only get 2-3 clicks daily—not enough for Reddit's algorithm to learn and optimize performance.
Are Reddit ads cheaper than Facebook ads?
Yes. Reddit ads average $0.50-$4.00 CPC compared to Facebook's $0.80-$6.00 CPC (avg $5.45). An Agorapulse study found Reddit delivered 42% lower CPC, 490% more impressions, and 69% more clicks than Facebook. However, Facebook offers broader reach—choose based on your target audience and goals.
What is a good CTR for Reddit ads?
Industry benchmarks show 0.2%-0.8% CTR is typical, with strong niche targeting achieving 1%+ CTR. Gaming and tech communities often see 0.8-2.0% CTR. Below 0.3% CTR indicates poor targeting or creative. Above 1% CTR means your ad resonates strongly with the community.
How long does it take to see ROI from Reddit ads?
Most advertisers see initial results within 2-4 weeks, with full optimization taking 60-90 days. Week 1-2 is the learning phase (expect higher costs), Week 3-4 shows initial optimization (costs stabilize), and Month 2-3 delivers consistent ROI (4-6x ROAS achievable). Don't pause campaigns in the first 14 days—you're resetting the learning process.
Related Reddit Marketing Resources
Reddit Max Campaigns 2026
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Reddit's 46% Ad Spend Growth
How Reddit crushed Instagram, TikTok, and Facebook in Q3 2025
Is Reddit Marketing Worth It?
ROI analysis and 2026 forecasts for Reddit marketing investments
Measure Reddit's AI Impact
Track Reddit's 450% citation growth in Google AI Overviews
Want to Maximize Your Reddit Ad ROI?
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