Reddit Expands Horizons with Acquisition of AI Startup Memorable
Reddit has announced its acquisition of Memorable, a company that helps improve ad creative. This move, revealed on Thursday, aims to strengthen Reddit’s advertising capabilities and make it more competitive with big players like Google, Meta, Amazon, and TikTok, all of which have recently upgraded their ad technologies.
Improving Ad Performance
Image Source: forbes.com
By acquiring Memorable, Reddit plans to boost the effectiveness of its ads across various formats, including display and video. The goal is to make Reddit’s ads more appealing and effective.
“Creative quality is crucial for how well ads perform,” said Roelof van Zwol, Reddit’s VP of Ads Engineering. “Memorable has made great strides in understanding and improving ad content with its smart analysis and recommendations.”
Memorable, backed by industry experts such as MediaLink CEO Michael Kassan and Brian O’Kelley, former CEO of AppNexus, raised $2.75 million in 2022. The company has worked with big brands like Unilever, Mars, Georgia Pacific, and ExxonMobil, many of whom are also Reddit advertisers.
What’s Next
Reddit will use Memorable’s technology to give advertisers detailed feedback on their ads, including text, images, and videos. This tool will analyze past campaigns to suggest improvements, helping advertisers get better results.
Memorable’s technology also helps lower costs associated with testing ads. Usually testing can eat up a lot of a campaign’s budget, but the company’s system offers valuable insights without extra spending.
This acquisition is part of Reddit’s broader strategy to improve its advertising services. It follows previous purchases of platforms for machine learning, textual analysis, and audience insights.
Van Zwol emphasized the importance of good ad creative, saying, “This acquisition helps us enhance our work in optimizing and generating ads, leading to better results for our advertisers.” Reddit’s goal is to give advertisers a stronger edge in their campaigns on the platform.
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