Sponsored Links Coming to Reddit

Social bookmarking site, Reddit announced its plans on a private beta, which will test out ads. The new beta will allow anyone to purchase a sponsored link on Reddit’s homepage, not necessarily just advertisers. Reddit sees a click-through rate between two and ten percent on ads running on the homepage.

How will it work monetarily? “Reddit will enter you into a pool with everyone else willing to pay to determine how much face time you’ll get on the homepage. For example, if the total bids for the day equal $200, and you bid the minimum $20, you’ll get 10% of the day in this ad slot”, TechCrunch explains. Additionally, Reddit later plans on expanding its capabilities to include audience targeting. As for Reddit users, they will be able to vote ads up or down the same way they do articles now.