Reddit Is Testing In-App Search Ads As Traffic From Google Declines

Reddit will begin testing search-results ads, placing sponsored placements near the top of query results and targeting users with high purchase intent based on contextual relevance, with only a limited group of advertisers in the first phase. The move comes as Reddit restricts logged-out users from most content and acknowledges significant search-traffic declines tied to Google's AI mode, a shift CEO Steve Huffman said will sharpen ad targeting. Searches such as "espresso station" could surface ads for mugs, beans or machines, and Reddit said it will evaluate user response during the test before broadening access. The twin changes matter because Reddit is reworking both its traffic funnel and its ad inventory as AI-driven search erodes referral visits. Next, watch how the search ad format performs with the initial advertiser cohort and whether the logged-in-only model stabilizes traffic and targeting metrics.