Understanding Reddit's pricing models is essential for running cost-effective ad campaigns. Reddit offers three primary pricing models—CPM, CPC, and CPV—each suited to different campaign objectives. This guide breaks down how each model works, current benchmark costs, and which to choose based on your goals.
Reddit operates on an auction-based advertising system, meaning your actual costs depend on competition, targeting, and ad quality. Unlike platforms with rigid pricing, Reddit's costs can vary significantly based on your chosen subreddits, audience targeting, and campaign objectives.
When you create an ad, you're competing against other advertisers targeting similar audiences. Reddit considers:
The combination of these factors determines whether your ad wins impressions and at what cost. This auction model keeps costs competitive—Reddit ads are generally cheaper than Facebook or Google, especially for niche audiences.
Reddit offers three main pricing models:
| Model | You Pay For | Best For |
|---|---|---|
| CPM | 1,000 impressions | Brand awareness, reach |
| CPC | Each click | Traffic, conversions |
| CPV | Video views | Video engagement |
Let's examine each in detail.
CPM—Cost Per Mille (Latin for "thousand")—means you pay for every 1,000 times your ad is displayed, regardless of whether users click or engage.
With CPM bidding:
Reddit CPM rates vary widely based on targeting:
| Targeting Type | Typical CPM Range |
|---|---|
| Broad interest targeting | $0.50-$5.00 |
| Specific subreddits | $2.00-$10.00 |
| High-competition niches (finance, tech) | $8.00-$15.00 |
| Niche/low-competition subreddits | $0.20-$2.00 |
| Premium placements | $10.00+ |
According to Neil Patel's marketing guide, Reddit CPMs typically range from $1.50 to $10 per 1,000 impressions, with premium placements costing more.
CPM is ideal for:
CPC—Cost Per Click—means you only pay when someone clicks on your ad. This model ties your spend directly to user action.
With CPC bidding:
Reddit CPC varies by industry and targeting:
| Industry/Targeting | Typical CPC Range |
|---|---|
| General interest | $0.20-$1.00 |
| B2B/SaaS | $0.50-$2.00 |
| E-commerce | $0.30-$1.50 |
| Finance/Insurance | $1.50-$4.00 |
| Gaming | $0.20-$0.80 |
| Tech/Software | $0.50-$2.50 |
For comparison, LinkedIn CPCs typically run $8-$10+ for B2B audiences, making Reddit significantly more affordable for similar professional targeting.
CPC is ideal for:
CPV—Cost Per View—applies specifically to video ads and charges you when users watch your video content.
Reddit counts a video "view" based on specific criteria:
Reddit offers competitive video advertising rates:
| Video Type | Typical CPV Range |
|---|---|
| Standard video ads | $0.02-$0.08 |
| High-engagement content | Under $0.10 |
| Premium placements | $0.10-$0.20 |
These rates make Reddit one of the more affordable platforms for video advertising, especially compared to YouTube's higher CPV rates for similar engagement.
CPV is ideal for:
Selecting the right pricing model depends on your campaign objectives and what you're optimizing for.
| Your Goal | Recommended Model | Why |
|---|---|---|
| Maximize reach/awareness | CPM | Pay only for visibility, get broad exposure |
| Drive website traffic | CPC | Pay only when users visit your site |
| Generate leads | CPC | Ties cost to user action |
| Promote video content | CPV | Pay only for engaged video viewers |
| Retarget warm audiences | CPM | Maximize impressions to users who know you |
| Test new audiences | CPC | Limit spend until you validate interest |
| Build brand recall | CPM or CPV | Focus on message delivery over immediate action |
Reddit's campaign objectives also influence which pricing model works best:
Brand Awareness Objective
Traffic Objective
Conversions Objective
Video Views Objective
Your budget also affects model selection:
How does Reddit's pricing stack up against alternatives?
| Platform | Avg CPM | Avg CPC | Avg CPV |
|---|---|---|---|
| $0.50-$15.00 | $0.20-$4.00 | $0.02-$0.10 | |
| Facebook/Instagram | $5-$15 | $0.50-$2.00 | $0.02-$0.05 |
| Google Display | $2-$10 | $0.50-$1.00 | N/A |
| $25-$45 | $8-$10+ | $0.06-$0.10 | |
| TikTok | $3.20-$10 | $0.50-$1.50 | $0.01-$0.03 |
Reddit's competitive advantage lies in:
CPM is typically cheapest for raw exposure, with rates as low as $0.50 per 1,000 impressions. However, CPC often provides better value because you only pay for engaged users who actually click. The "cheapest" model depends on your goals—paying $5 CPM for unengaged impressions may cost more than paying $0.50 CPC for qualified visitors.
Yes, but you'll need to create a new campaign or ad group. Reddit doesn't allow changing the pricing model on an active ad. Test different models with small budgets before committing significant spend to either approach.
Reddit offers Target CPA bidding for conversion-focused campaigns, but it requires sufficient conversion data to optimize effectively. Most advertisers start with CPC and transition to Target CPA once they have 50+ conversions for the algorithm to learn from.
Reddit's auction system charges you only what's necessary to win the impression. If you bid $2 CPC but the next highest bidder is at $0.75, you might pay $0.76. Higher bids improve ad delivery but don't necessarily increase costs proportionally.
Reddit sets minimum bids based on your campaign type and targeting. Minimums are typically around $0.10 for CPC and $0.50 for CPM, though these vary by competition in your target audience.
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