Reddit (RDDT, Financial) shares climbed about 7% on Tuesday after the social media company introduced a new suite of artificial intelligence tools designed to help brands optimize ad campaigns using community-driven data.
The company unveiled the tools at the Cannes Lions advertising festival. The first product, Reddit Insights, offers marketers real-time data from posts and comments to track trends and shape messaging. A second feature, Conversation Summary Add-ons, lets advertisers display “positive” community interactions below their ads.
Reddit said the tools are powered by an engine called Reddit Community Intelligence, which transforms unstructured user content into structured insights for brands seeking to better connect with high-intent users.
Publicis was the exclusive alpha tester for Reddit Insights, while Lucid and Jackbox Games were among early testers of the ad summary feature.
The launch comes as tech firms increasingly turn to generative AI to improve engagement and ad performance. Reddit said its platform changes, including increased account sign-ups and Google (GOOGL, Financial) search visibility, have supported recent revenue growth.
The broader ad industry continues to face uncertainty amid lingering macroeconomic pressures and trade tensions between the U.S. and China, though recent signs point to a cooling of the dispute.
