
Hi and welcome back to another edition of The Keyword.
This week, we look at Reddit’s push to reposition itself as a performance channel while becoming part of the infrastructure behind AI recommendations. With SMB ad spend doubling and search ambitions expanding, it may be worth taking a fresh look.
— Kole
Coming up:
✦ Meta UK ad-free offer
✦ Microsoft AI content licensing
✦ Reddit AI search expansion
✦ UpScrolled tops AppStore
✦ TikTok US uninstall spike
✦ OpenAI ChatGPT ad minimums
Feature

Advertisers spent $690 million on Reddit ads in Q4 2025. That’s a 75% year-over-year increase.
The company also said ad spend from small and medium-sized businesses doubled.
Reddit has been seen mostly as an upper-funnel channel useful for cultural relevance, less so for direct response. That perception appears to be changing.
Driving conversions
Reddit says recent investments in ad targeting and new formats, including shopping ads, are improving lower-funnel performance.
Its automated campaign product, Reddit Max, reduced cost per acquisition by 17%, according to the company.
Meanwhile, revenue attributed to Reddit’s Conversion API tripled, suggesting more advertisers are integrating deeper performance tracking.
Influence over AI recommendations
Reddit’s role extends beyond advertising. It is also becoming part of the infrastructure behind AI-generated answers.
According to data from Profound, Reddit is the most cited social media platform in ChatGPT responses, accounting for 3.36% of citations. The next closest platform, LinkedIn, accounts for 0.32%.
Search ambition
Reddit is also leaning further into search.
Weekly active users of Reddit’s search tools grew 30% year-over-year to 80 million.
CEO Steve Huffman has described search advertising as “an enormous market and opportunity.” While no timeline has been announced, the company is planning a dedicated search ad product.
Bottom Line
As Reddit refines its lower-funnel capabilities, solidifies its role in AI ecosystems, and eyes search as the next frontier, it's quietly building a more complete advertising and discovery engine.
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More Headlines
📰 Meta has stepped up the £2.99 to go ad free offer to UK users
More users have reported that they have the offer to pay to remove ads on Facebook and Instagram, with prices starting at £2.99 per month on the web and £3.99 on mobile. Subscribers’ data will be excluded from personalized ads.
🚀 Microsoft launches new program for publishers to license content for AI
The Publisher Content Marketplace lets publishers control how their articles are used in AI-powered tools and receive compensation. It tracks when content contributes to AI responses and shares this data with publishers.
🥇 UpScrolled hit number 1 on the U.S. App Store
The app has grown from 40,000 to over 1 million users in just a few weeks, with more than 500,000 new users joining in 72 hours.
📉 TikTok uninstalls rose 150% in the U.S. after joint venture
The jump in TikTok uninstalls followed the announcement that U.S. operations would move under a majority-American-owned entity according to Sensor Tower data shared with CNBC.
📢 OpenAI sets $200,000 minimum spend for early ChatGPT ads
The early beta will include a small group of brands, with some starting campaigns as soon as February 6. AdWeek reported that, while the minimum commitment is $200,000, some brands in retail and streaming were asked to commit around $250,000, and others were offered budgets between $100,000 and $125,000.
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You’re caught up
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