Benchmarks
March 23, 2025
Reddit Ads Benchmarks Per Industry (2025)
Curious how your Reddit Ads performance stacks up this year? Comparing against up-to-date benchmarks helps you spot wins, diagnose bottlenecks, and plan smarter tests. Below you’ll find 2025 benchmark ranges for core metrics—CTR, CPC, CPM, CVR, and CPA—plus practical playbooks per industry and the newest Reddit ad features worth using right now.
Overview & Why This Matters
Reddit’s place in the 2025 media mix
Reddit is where people hash out decisions in public—especially in gaming, tech, finance, auto, health, and enthusiast retail. That “research mode” mindset turns the platform into a cost-efficient mid-funnel workhorse and, with the right offer, a conversion driver.
What these benchmarks help you decide
If your CPC/CPM is efficient for your niche.
Whether your CTR merits creative retests or audience changes.
If your CVR/CPA is on track—or landing pages need love.
How to budget realistically for scale vs. efficiency.
Measurement Basics
Key metrics (CTR, CPC, CPM, CVR, CPA) explained
CTR (Click-Through Rate): % of impressions that result in a click.
CPC (Cost Per Click): Spend divided by clicks.
CPM (Cost Per Mille): Cost to reach 1,000 impressions.
CVR (Conversion Rate): % of clicks that convert (purchase, signup, etc.).
CPA (Cost Per Action): Spend divided by conversions (or CPC ÷ CVR).
Objective matters: Traffic vs. Conversions
Traffic campaigns typically see higher CTR and lower CPC, but softer CVR.
Conversion campaigns accept lower CTR and higher CPC to gain stronger CVR and lower CPA.
How to benchmark responsibly (geo, audience, placement)
Compare apples to apples: same geo, device mix, subreddit breadth, and placements (feed vs. conversation).
Account for seasonality (sales, launches) and creative fatigue.
Platform-Level Signals to Anchor Expectations
Typical CPC, CPM, and CTR across Reddit
CTR: ~0.2–0.3% baseline; 0.5–1.0% is common in high-interest categories with strong creative.
CPC: ~$0.10–$0.80 for most consumer campaigns; $0.50–$2.00 in narrow B2B/SaaS.
CPM: ~$2–$6 on standard placements; higher for premium takeovers or very tight audiences.
CVR: ~2–8% for low-friction actions; 1–3% for higher-consideration purchases.
CPA: Consumers often $5–$20; B2B leads $50–$100+.
What “good” vs. “great” looks like on Reddit
Good: You’re within ±20% of category averages and hitting target CPA/ROAS.
Great: You’re 50–100% above average CTR/CVR while holding CPC/CPA at or below targets.
Reddit Ads Benchmarks by Industry (2025)
Consolidated Benchmarks Table
Industry | Avg. CTR | Avg. CPC | Avg. CPM | Avg. CVR | Avg. CPA |
|---|---|---|---|---|---|
Retail & E-commerce | ~0.5% (0.7–0.8% possible) | $0.20–$0.50 | $2–$5 | ~2–5% | ~$5–$15 |
Gaming (Video Games) | ~0.5–1.0% | $0.10–$0.50 | ~$1–$4 | ~5–15% (installs/demos) | Few $ for installs; higher for paid |
Technology (B2B SaaS) | ~0.2–0.5% | $0.50–$2.00 | ~$3–$10 | ~1–5% | $50–$100+ (B2B) |
Finance (Fintech) | ~0.2–0.4% | ~$0.50–$1.00 | ~$4–$8 | ~5–10% (signups) | ~$10–$30 |
Entertainment & Media | ~0.3–0.6% | ~$0.20–$0.50 | ~$3–$6 | Often <2% (hard actions) | Variable; treat awareness as primary |
Automotive | ~0.3–0.5% | ~$0.50–$1.00 | ~$5–$10 | ~1–3% (leads) | ~$20–$60+ per lead |
Health & Wellness | ~0.3–0.6% | ~$0.30–$0.80 | ~$3–$7 | ~2–8% | ~$5–$20 |
Use these as directional anchors; actuals will swing with geo, audience depth, offer strength, and landing page quality.
Retail & E-commerce
Performance ranges
CTR: ~0.5% average; 0.7–0.8% with sharp creative and product-market fit.
CPC: $0.20–$0.50; dimes-per-click are common on broader reach.
CPM: $2–$5; near overall platform average.
CVR: ~2–5% to purchase/signup.
CPA: ~$5–$15 per customer or lead.
Creative & targeting playbook
Spin up Dynamic Product Ads (DPA) as always-on; refresh feeds weekly.
Use UGC-style visuals, reviews/stars, shipping/returns in the first line.
Cluster by intent subs (e.g., r/BuyItForLife, r/malefashionadvice) + broad interest.
Retarget product viewers and cart abandoners with price-drop creatives.
Gaming (Video Games)
Performance ranges
CTR: ~0.5–1.0%; gameplay snippets and social proof push upper bound.
CPC: $0.10–$0.50; sub-$0.10 possible on broad hype bursts.
CPM: ~$1–$4.
CVR: ~5–15% for installs/demos; lower for paid titles.
CPA: A few dollars for installs; higher for premium purchases.
Creative & targeting playbook
Lead with moment-to-fun (3–6s clip), plus tagline + platform.
Stack feed + Conversation Ads around r/pcgaming, r/Games, r/NintendoSwitch.
Time ads to Steam/console sales; retarget wish-listers with discount creatives.
Run a dev AMA post-launch to extend buzz and resolve objections.
Technology (Software & B2B SaaS)
Performance ranges
CTR: ~0.2–0.5% (higher in niche subs with technical angles).
CPC: $0.50–$2.00; still cheap vs. LinkedIn.
CPM: ~$3–$10.
CVR: ~1–5% (free trial/demo at upper end).
CPA: $50–$100+ for qualified B2B leads.
Creative & targeting playbook
Put the problem + proof above the fold (gif of dashboard/result).
Offer free tools/templates (calculator, CLI, checklist) to lift trial CVR.
Target r/devops, r/dataengineering, r/programming, r/startups with use-case hooks.
Test Sponsored AMAs with founder/PM to build trust and handle objections in public.
Finance (Fintech & Financial Services)
Performance ranges
CTR: ~0.2–0.4%; incentives can push ~0.5%.
CPC: ~$0.50–$1.00.
CPM: ~$4–$8.
CVR: ~5–10% for low-friction signups.
CPA: ~$10–$30 per acquired user.
Creative & targeting playbook
Lead with clear, compliant value props (bonus cash, 0% fees, APY).
Place Conversation Ads near r/personalfinance, r/investing threads with FAQs.
Speed matters—use instant-load landers and short forms; show security badges.
Retarget content engagers (tax, budgeting, investing tips) with a simple signup ask.
Entertainment & Media
Performance ranges
CTR: ~0.3–0.6%; community events can 2× this.
CPC: ~$0.20–$0.50.
CPM: ~$3–$6.
CVR: Often <2% for paid subs/tickets—opt for brand lift metrics.
CPA: Variable; treat engagement/awareness as primary KPI.
Creative & targeting playbook
Pair trailer drops with AMAs (cast, director) in relevant fandom subs.
Use free-form text ads with comments enabled to spark memes/discussion.
Sequence: Teaser → Trailer → Early Access/Free Trial; retarget viewers to drive trials.
Automotive
Performance ranges
CTR: ~0.3–0.5% (0.4%+ with research subs).
CPC: ~$0.50–$1.00.
CPM: ~$5–$10.
CVR: ~1–3% to lead (test drive/quote).
CPA: ~$20–$60+ per lead.
Creative & targeting playbook
Turn on Automotive Inventory Ads (VIN-level catalog) to show in-stock models.
Target research communities (r/whatcarshouldIbuy, r/cars) and layer Conversation Ads in threads.
Call out APR/loyalty/lease offers in the first line; use 360° reels and interior shots.
Retarget build-and-price visitors with dealer-specific availability.
Health & Wellness
Performance ranges
CTR: ~0.3–0.6%; authenticity and community proof help.
CPC: ~$0.30–$0.80 (condition targeting trends higher).
CPM: ~$3–$7.
CVR: ~2–8% (free trials/samples at upper end).
CPA: ~$5–$20.
Creative & targeting playbook
Share evidence-based claims and real stories (ethical, clear disclaimers).
Build educational landers (FAQs, comparisons, ingredient proof).
Target r/Fitness, r/loseit, r/Supplements, condition subs; retarget content viewers.
Offer low-friction trials (7-day free, sample pack) to lift CVR.
New Reddit Ad Features to Use in 2025
Conversation Ads (in-thread)
Your ads can now appear inside comment threads, where users are deepest in research. Running feed + conversation placements together often boosts awareness, intent, and efficiency, frequently reducing CPA by addressing objections in context.
Dynamic Product Ads (DPA)
Auto-generate product ads from your catalog feed. Machine learning matches items to on-platform behavior and off-site pixel data. Expect higher ROAS than static conversion campaigns when SKUs are plentiful and feeds stay fresh.
Automotive Inventory Ads
A DPA subtype for car marketers: sync your vehicle inventory (make/model/price/photos) and reach shoppers in research threads with VIN-level accuracy across feed and conversations.
Sponsored AMAs & Engagement Ads
Lean into Reddit culture: Sponsored AMAs (founders, experts, cast) and Conversation Starters generate high-trust engagement, comments, and durable word-of-mouth.
Ads Manager upgrades (imports, AAC, Pixel/CAPI)
Meta import: Lift-and-shift campaigns to test Reddit faster.
Automated Ad Creation (AAC): Upload multiple headlines/assets; Reddit combines/optimizes variants.
Pixel/CAPI + Events Manager: Easier conversion tracking, unlock Target CPA, cleaner attribution.
Creative enhancements (free-form text, comments, video)
Use formatted text, enable comments on free-form ads, and leverage watch-while-load video to reduce drop-off and keep users engaged while your landing page renders.
Optimization Framework & Back-of-Napkin Planning
Diagnose with the CPM→CPC→CPA ladder
High CPM + average CTR? Audience too tight/premium—broaden geo/interests or test standard placements.
Low CPM + high CPC? CTR problem—iterate hooks, first frame, offer clarity.
Good CPC + weak CVR? Fix message match, page speed, form friction, proof.
Strong CVR + high CPA? You’re converting; scale budget and improve retargeting mix.
Fast math for budgets and targets
Target CPA = $12 (Retail). Assume CPC = $0.30, CVR = 3% → CPA = $0.30 ÷ 0.03 = $10 (green-light scale).
Target CPA = $40 (Auto lead). If CPC = $0.80, CVR = 2% → CPA = $40 (on target; test Conversation Ads to push lower).
30-day testing roadmap
Audience bedrock (Week 1): 3–5 subreddit clusters + one broad interest.
Placement test (Week 1–2): Feed vs. Feed+Conversation.
Creative matrix (Week 1–3): 4–6 variants via AAC (price, social proof, urgency, novelty, educational, UGC).
Offer friction (Week 2–4): Trial/sample/lead magnet vs. hard purchase.
Retargeting (Week 3–4): Engagers, viewers, and cart/lead abandoners with sequential messaging.
Decide & scale (Day 30): Kill bottom quartile; shift budget to winners; raise caps where CPA stable.
Final Thoughts
Reddit in 2025 combines community-grade attention with auction efficiency and context-aware placements. Anchor on the benchmarks above, then win on execution: clear offers, native-feeling creative, fast pages, and honest proof. Layer in Conversation Ads, DPA/Inventory Ads, and Sponsored AMAs to catch people in the very moments they’re deciding.
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