Reddit has carved out an upper funnel niche for brand advertisers

February 26, 2026 Reddit's ad business has been on the rise in recent quarters. For marketers, the platform has become a useful avenue to target specialist audiences with brand awareness messaging. According to five media buyers who spoke with Digiday, the platform is attracting between 5-20% of paid media budgets from some brands, including retailers and beverage advertisers. TOP STORY Marketing on Platforms Reddit has carved out an upper funnel niche for brand advertisers The platform’s rapidly growing ads business has attracted brands like JC Penney hoping to reach its specialist communities with upper-funnel messaging. Advertisement OTHER THINGS TO KNOW This WTF explainer guide covers why brands like Sephora and Adidas are moving away from a siloed approach to loyalty and promotions, and are instead implementing a unified incentives marketing strategy. Partner insights from Talon.One. Weather impacts what people try, buy and how they feel. This powers targeting to predict the moments when weather shifts a consumer's mindset toward purchase, driving sales and long-term growth. Learn more in this video. Partner insights from The Weather Company. Timing structure should be a strategic lever in marketers’ planning processes. Key steps include auditing their current execution calendar, prioritizing shoulder periods, avoiding overload on peak weeks and accounting for media booking realities. Partner insights from Keen Decision Systems. MEDIA & PLATFORMS The Programmatic Marketer Despite 2025 revenue beats, The Trade Desk's stock price falls sharply after earnings update Despite 2025 revenue nearing $3 billion, lower-than-expected Q1 guidance disappoints, as CEO Jeff Green pushes back against competitors and detractors. Member exclusive Media Briefing: Without transparency, publishers can't tell if Google's Preferred Sources feature benefits them Six months in, Google's Preferred Sources promises loyalty-driven visibility, but leaves publishers guessing at the traffic impact. PARTNER INSIGHTS FROM NEXXEN What advertisers can learn from the 2026 World Cup For advertisers, the challenge that comes with TV is not whether people will watch. It is where they watch, how they move between platforms and how quickly plans need to adapt. MARKETING The Creator Economy Urban Outfitters shifts its influencer strategy from reach to participation Me@UO is Urban Outfitters’ new creator program leverage micro-creators with smaller, engaged communities that are passionate about the brand. PARTNER INSIGHTS FROM CHANNEL FACTORY Three priorities that define the next stage of brand suitability The discussion around brand safety and suitability has matured. The industry is now entering a new phase, where brands expect more control, more extensibility into walled gardens and closer accountability to outcomes. Generative AI Brands at eTail Palm Springs share lessons on the 'messy middle' of building AI tools Here's a rundown of lessons brands have shared about their AI implementations so far. Advertisement PARTNER INSIGHTS FROM EXPERIAN Why context is key to making AI successful in marketing As AI takes center stage in marketing strategy, context is emerging as the differentiator that turns reactive automation into predictive intelligence. ICYMI Retail Media Rewritten Walmart Connect's full-funnel ambitions come into focus, with Amazon in its sights Walmart Connect is scaling quickly, with AI investments and the Vizio acquisition shaping its push to rival Amazon's ad business. Written by Jim Cooper and Sara Jerde Were you forwarded this email? Sign up to get it daily. Advertise | Digiday+ | Events | Awards Update your email | Unsubscribe | Privacy policy