Reddit deepens Tinuiti relationship as it courts ad agencies ahead of IPO

Reddit is touting a deeper ad agency partnership with Tinuiti as the internet company shores up deals in the ad world ahead of its long-anticipated IPO. On Tuesday, Reddit called Tinuiti its first “independent agency partner.” Reddit also has strong ties to Omnicom Media Group, and last week The Financial Times reported that Reddit was courting WPP. Reddit has been expanding its advertising business ahead of an expected initial public offering later this year, when it aims to sell shares that could value the company at up to $15 billion. “It’s been a tremendous 12 months of agency partnerships at Reddit as we’ve up-leveled our relationships and agreements with the major holding companies in exciting and significant ways,” said Neal Hubman, Reddit head of growth for mid-market and small and midsize businesses. “The natural next step for us is to apply the same focus to independent agencies, which already account for a growing number of active advertisers on our platform.” Reddit did not say which other agencies it has courted, but these types of deals with holding companies and ad firms are common. Tinuiti is a performance marketing agency and the partnership will give Tinuiti clients an early look at Reddit ad tech tools, such as research reports and opportunities to test the latest ad products. Tinuiti clients will also get creative strategy help from KarmaLab, Reddit’s in-house agency. See Ad Age's Super Bowl coverage Watch all the Super Bowl 2022 commercials The best and worst Super Bowl ads, reviewed See all of Ad Age's 2022 Super Bowl news and analysis Reddit did not disclose the terms of the deal. Tinuiti has been working with Reddit since 2020, but they now have a closer relationship, according to the announcement. Last year, Reddit said that it topped $100 million in ad sales in the second quarter, which represented 192% growth over the same quarter in 2020. The second quarter also happened to represent a windfall for a number of internet ad companies in comparison to the second quarter of 2020, which was when the COVID-19 pandemic hit hardest. Reddit has also set 2023 as the year it could top $1 billion in advertising revenue. Before it gets there, however, it has to turn its amalgam of rowdy communities into popular advertising targets. Reddit has said it has more than 50 million daily users, making it small in comparison to Facebook, Instagram and TikTok, but it has an outsized role to play in internet culture. Reddit has more than 100,000 communities known as subreddits devoted to everything from TV shows and movies to memes. Last year, “Wall Street Bets” captured the attention of Wall Street when the Reddit community sparked interest in underdog stocks like GameStop and AMC. This year, a forum known as “Anti-Work” has been gaining popularity among disgruntled employees around the world. Tinuiti already works with Google, Meta, Amazon, Walmart and TikTok. Last year, it acquired Ortega Group, an agency specializing in selling on Amazon, and Bliss Point Media, which bolstered Tinuiti’s connected TV media business. Earlier this month, Tinuiti started an influencer marketing arm. Tinuiti works with brands like e.l.f Cosmetics, Converse and Rite Aid. Most recently, Tinuiti worked with Reddit to find new users for M1 Finance, a money management platform and robo-advisor. Financial services are of growing importance in Reddit's ad sales strategy, as it promotes communities like Wall Street Bets and a host of forums focused on cryptocurrencies. “Tinuiti is focused on ensuring our clients have the most innovative and first-to-market competitive advantages across their entire media approach with the freshest levers at their disposal,” Obele Brown-West, Tinuiti’s chief solutions officer, said in a statement announcing the deal.

Reddit deepens Tinuiti relationship as it courts ad agencies ahead of IPO

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