The Hidden Limitations of Reddit Ads: What Every Advertiser Should Know Before Launching

Insights from a Reddit advertising agency with 15+ years on the platform.

Reddit has quietly become one of the most influential discovery channels online. Its users actively search for solutions, discuss brands, share recommendations, and challenge marketing claims. For many brands- especially B2B and niche consumer products- Reddit Ads can outperform traditional platforms when used correctly.

But here’s the truth few talk about: Reddit Ads still lacks many of the core features advertisers take for granted on Google Ads, Facebook Ads, and other PPC platforms.

As a Reddit marketing agency working hands-on with clients daily (and as a Redditor for over 13 years), I’ve learned where Reddit shines- and where its current limitations can hurt performance, scale, and optimization.

If you're planning to invest in Reddit Ads, here are the crucial blind spots you must understand.

1. Budgeting Restrictions That Limit Optimization

Most advertisers assume campaign-level budget optimization exists on Reddit. It doesn’t.

Minimum spend is $5 per ad group per day, not per campaign. There is no Campaign Budget Optimization (CBO).

This means:

• Every audience you want to test requires its own ad group

• Each ad group must spend at least $5/day

• Testing 5 audiences = $25/day minimum

• Scaling requires multiplying ad groups- not simply increasing one consolidated budget

For brands that love structured audience testing, this is manageable. But for new advertisers, it adds friction and unnecessary cost.

2. Targeting Data Is Often Inconsistent (and sometimes misleading)

One of the most common issues advertisers face is inconsistent audience size reporting.

Example: A subreddit with 14,000 members may show only ~900 reachable users in Reddit Ads Manager.

Are these numbers accurate? No one outside Reddit knows. And advertisers should be concerned, because these inconsistencies directly affect:

• Forecasting

• Audience testing

• Spend distribution

• Expected reach

When you're a Reddit advertising agency assessing viability for a client, unclear targeting data makes planning significantly harder.

3. Duplicating Ads or Ad Groups Is Shockingly Difficult

Something as basic as copying ads between ad groups or campaigns is unnecessarily painful.

• Duplicating an ad into another audience often fails

• In many cases, it’s faster to recreate an ad from scratch

• Duplicating an entire ad group is another level of frustration entirely

For agencies managing multiple audiences, this leads to wasted time and operational inefficiency.

4. Support Has Improved, But Problems Still Exist

Support availability on r/redditads has definitely improved in recent months. However, documented issues still include:

• Paying outstanding balances but still being unable to launch ads

• Temporary account locks

• Delayed ticket responses

This is not a criticism- only a reality advertisers must plan for.

5. Lifetime Budgets Can Overspend

Most platforms never exceed your lifetime budget.

Reddit can.

If you set a lifetime budget, Reddit reserves the right to overspend by a certain percentage. This is normal for daily budgets- but unusual for lifetime limits.

6. No Performance Breakdown by Audience

This one is huge for optimization.

Reddit does not show how each audience (interest group or subreddit) performs individually.

To test audiences, you must:

• Create separate ad groups

• Set each at a minimum $5/day

• Analyze differences manually

This increases cost, reduces flexibility, and slows learning cycles.

Final Thoughts: Reddit Ads Work - But Only If You Understand the Limitations

Rethe-hidden-limitations-of-reddit-ads-what-every-advertiser-should-know-before-launchingddit is one of the most powerful platforms for reaching high-intent, niche communities. When executed correctly, campaigns can produce exceptionally high-quality traffic and conversions.

But advertisers should not approach Reddit expecting the same maturity or transparency offered by platforms like Meta, Google, or TikTok.

As a Reddit marketing agency that helps brands navigate these limitations daily, I can confidently say:

Reddit Ads work best when you understand the platform deeply, work around its gaps, and tailor your strategy to Reddit’s unique ecosystem.

If you need guidance setting up your Reddit campaigns, optimizing performance, or scaling your results, feel free to reach out. With the right expertise, Reddit can become an incredible growth channel for both B2B and B2C brands.