Reddit’s trust advantage is paying off for CPG advertisers

The news: Reddit shoppers generate higher lifetime value and stronger ad returns for consumer packaged goods (CPG) brands than competing social platforms, per new data from Attain and Circana. 

Reddit delivers 1.5 times higher ROAS, Circana found, while Attain said it drives a stronger 5-year LTV across beverage (+15%), food (+14%), and personal care and beauty (+17%).

Reddit users typically seek community answers and discourse, not entertainment. Over the last six months, US users generated over 3.1 billion grocery shopping conversations on topics like “which oat milk tastes best” and “what food for a new puppy,” per Reddit. These open-ended questions help inform active decision-making.

Zooming in: Unlike other social platforms, where scrolling is often passive, Reddit shoppers research before they buy: Awareness-stage engagement on the site grows 5.9 times faster than consideration, per Reddit Insights. That allows CPG brands to influence consumers early in the decision-making process. 

  • 84% of users feel more confident buying after researching on Reddit, so trust earned in these conversations translates directly to buying decisions. 
  • Subreddits and communities like r/Aldi have grown 21% YoY— proving Reddit builds not just discovery, but loyalty.
  • Reddit found that 81% of its 121 million daily active users (DAUs) welcome brand conversation, per Adweek, making it ideal for brand discovery and interactions.

Implications for CPG brands: Reddit offers distinct advantages over other social media platforms that are rooted in its community discussions. Its unique position is unlikely to be challenged anytime soon, which means brands should consider building Reddit engagement into their playbooks.

  • Find opportunities to engage buyers earlier  by hosting Reddit AMAs focused on key product and service features.
  • Monitor brand subreddits to identify demand patterns.
  • Engage with customers beyond prepared marketing campaigns to preserve trust.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.

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