When planning a Reddit campaign, the core consideration is not only “how much does it cost?” but also “what do I receive in return for that spend?” Typical cost-per-click (CPC) ranges from about $0.50 to $4.00, while cost-per-thousand impressions (CPM) generally falls between approximately $3.50 and $15.00, with video formats often priced at a premium. However, these broad ranges can be misleading on their own. Actual costs are significantly influenced by factors such as your niche, audience targeting depth, competition within specific subreddits, and the ad format you choose. In practice, these variables can substantially increase or decrease your effective CPC or CPM, meaning that two campaigns with the same budget can yield very different levels of reach and engagement depending on how they are structured.
Reddit Ad Costs in 2025 at a Glance
Reddit’s 2025 advertising costs remain comparatively moderate relative to many other social platforms. Average CPM is approximately $3.50, which allows for competitive reach without requiring a large budget. Typical CPC ranges from about $0.50 to $4.00, with lower costs often available in well-defined, niche subreddits where audiences are more targeted. Video ad placements generally fall on the higher end, at around $0.80 to $4.00 CPC, reflecting stronger engagement potential and higher production value. Reddit requires a minimum spend of $5 per day and $50 per campaign. These thresholds are low enough to facilitate controlled testing, audience refinement, and A/B experimentation without committing substantial upfront capital. Compared with platforms like LinkedIn or Facebook, Reddit’s relatively low CPM rates can make it an efficient option for advertisers focused on reach and experimentation.
Pricing Models: CPC, CPM, and Beyond
Reddit’s overall ad costs are relatively moderate, but actual spend depends on the chosen pricing model—CPC, CPM, or CPA.
- CPC (Cost Per Click): Typically ranges from about $0.50 to $4.00 per click. Costs may be lower in less competitive niches or when targeting smaller, highly specific subreddits.
- CPM (Cost Per Mille/Thousand Impressions): Commonly falls between $3.50 and $15.00 per thousand impressions, depending on factors such as audience size, placement, and competition.
- CPA (Cost Per Acquisition): Based on completed actions (e.g., sign-ups or purchases), often in the range of $5 to $14 per acquisition, with the exact cost influenced by how demanding the conversion event is and how well the campaign is optimized.
Video placements generally cost more due to higher engagement rates and richer formats:
- Video CPC: Around $0.80 to $4.00 per click.
- Video CPM: Approximately $8 to $20 per thousand impressions.
Advertisers can manage and optimize spend through Reddit’s budget controls and tools, including:
- Minimum budgets of $5 per day and $50 per campaign,
- Manual bid settings, and
- Conversion optimization using the Reddit Pixel, which helps refine delivery toward users more likely to convert.
Because Reddit allows precise interest‑based targeting through subreddits, advertisers can often achieve efficient CPC and CPA in highly engaged niche communities compared with broader platforms.
What Different Reddit Ad Formats Actually Cost
Reddit’s ad formats each have distinct pricing structures, so actual costs depend on how your ads appear in the feed and how you bid.
Promoted Posts (image ads) commonly fall in the range of about $0.50–$3.00 per click or $5–$12 CPM, depending on factors such as audience targeting, competition, and ad quality.
Video ads tend to be more expensive, often ranging from roughly $0.80–$4.00 CPC or $8–$20 CPM. This reflects generally higher engagement rates and the added impact of motion and sound.
Carousel ads, which allow multiple images or products in a single unit, typically cost around $1.00–$3.50 per click and $6–$18 CPM. They can be useful for showcasing product ranges, but the cost will still depend on standard auction variables like demand and relevance.
Display ads are placed in premium, high-visibility inventory (such as front-page or sitewide placements). As a result, they usually carry higher overall costs, even though there are no widely published public benchmarks.
Their pricing is often more customized, reflecting placement, campaign objectives, and negotiated terms.
Key Factors That Drive Your Reddit Ad Spend
Knowing the typical CPC and CPM ranges for each ad format is only part of the picture—you also need to understand the factors that influence whether your Reddit ad costs move toward the lower or higher end of those ranges.
Ad format is a key variable: video placements often cost more than image or carousel ads because they tend to generate higher engagement and attract more competition in auctions.
Targeting settings also affect costs. When you aim at broad, highly competitive interests, you’re more likely to see CPCs near the upper end of Reddit’s approximate $0.50–$4.00 CPC and $3.50–$15.00 CPM ranges. In contrast, focusing on relevant but less crowded niche subreddits can help lower CPC by reducing competition for impressions.
Performance and bidding strategy further shape your final costs. Ads with higher click-through rates or stronger engagement can become more efficient over time, as the system is more likely to serve them in auctions.
At the same time, your bid caps, budget levels, and ongoing bid adjustments directly influence how aggressively you compete, which in turn affects both delivery and average CPC/CPM. Building a strong reputation on Reddit through consistent, valuable participation in relevant subreddits can also improve ad efficiency by aligning your paid campaigns with an audience that already recognizes and trusts your presence.
Tactics to Lower Your Reddit Advertising Costs
Instead of assuming higher CPC and CPM are unavoidable, you can reduce Reddit ad costs by refining both strategy and execution.
Begin with a modest daily budget (for example, $5) to test audiences, creatives, and placements with limited risk.
Focus on narrowly defined, relevant subreddits, where CPCs are often lower (commonly in the range of about $0.50–$1.50) compared with broad or highly competitive categories.
Run structured A/B tests on headlines, images, and ad formats to identify higher-performing variations and pause underperforming ones quickly.
Use Reddit Ads Manager to review performance metrics on a regular basis and, in lower-competition niches, consider keeping manual bids below approximately $0.40 when feasible.
Install the Reddit Pixel to track conversions, set up retargeting audiences, and use the resulting data to adjust targeting and bidding strategies over time.
Is Reddit Advertising Cost-Effective for Your Business?
To evaluate whether Reddit ads are cost-effective for your business, start by comparing its typical costs to what you currently see on platforms like Google or Facebook.
On Reddit, CPCs often range from about $0.50–$4.00 and CPMs from roughly $3.50–$15.00, which are frequently lower than those on larger, more saturated ad networks.
Reddit also allows relatively low daily budgets (e.g., around $5 per day), which can be useful for small-scale testing without committing substantial spend.
Targeting specific, relevant subreddits—particularly niche communities—can help reduce CPCs and improve engagement, since users in those communities are often more focused on particular topics or interests.
To determine cost-effectiveness in your specific case, run controlled tests and track metrics such as click-through rate, conversion rate, and cost per acquisition.
Techniques like A/B testing creative and audience segments, along with adjusting bids based on performance, can improve results over time and help keep acquisition costs aligned with your goals.
Conclusion
Reddit ads can be relatively cost-effective when you understand how CPC, CPM, ad formats, and targeting interact. By starting with small tests, refining your creatives, and focusing on relevant niche subreddits, you can often achieve more efficient spend than on some broader, more competitive platforms. It is important to define clear objectives, monitor performance metrics closely, and adjust campaigns based on data. With a structured and analytical approach, Reddit can serve as a controlled and potentially high-ROI advertising channel.