Reddit's Max Campaigns: AI Tool Slashes CPC by 37% in Brooks Running Test

Reddit Unveils Max Campaigns: A Game-Changer for Performance Ads

Imagine launching a Reddit ad campaign that handles the heavy lifting—targeting, bidding, even creative tweaks—all while cutting costs and boosting clicks. That's exactly what Reddit promised with its new Max Campaigns tool, dropped at CES 2026. In a split test with Brooks Running, this AI beast delivered a 37% drop in cost per click and 26% more clicks than traditional setups. For marketers tired of manual tweaks on a platform known for niche, engaged audiences, this could be the edge needed to compete with giants like Google and Meta.

Reddit's move isn't just hype. With ad revenues projected to hit $1 billion this year—a full doubling from last year's estimates—the platform is betting big on AI to attract performance-focused spenders. But does it live up to the buzz? Let's break it down.

What Makes Max Campaigns Tick?

At its core, Max Campaigns is Reddit's answer to the complexity of social ad management. Powered by something Reddit calls Community Intelligence—that's the goldmine of real user conversations across its 443 million weekly active users—the tool predicts the value of every single ad impression. No more guessing games.

Here's how it works in practice:

• •Automated Targeting: It scans Reddit's vast data pool to match ads to the right subreddits and users, using keywords, interests, and even custom exclusions like recent buyers.
• •Smart Bidding: AI adjusts bids in real-time to maximize ROI, focusing on high-value impressions without you constantly monitoring.
• •Creative Optimization: Upload a batch of assets—headlines, images, videos—and the system dynamically pairs them for peak performance. Brooks tested with 5 headlines, 16 images, and 2 videos, letting the AI pick winners on the fly.

This isn't your run-of-the-mill automation. Unlike Meta's Advantage+ or Google's Performance Max, Reddit emphasizes transparency. You get insights into why certain creatives or placements worked, drawing directly from community discussions. Jyoti Vaidee, Reddit's VP of ads product, put it this way: "Brands are turning to Reddit to reach audiences they don’t find elsewhere and to influence how their products appear across AI chatbots like ChatGPT." That's a nod to how Reddit's authentic chatter feeds into broader AI ecosystems.

Why does this matter? Social ad costs are climbing—average CPCs rose 15% industry-wide last year. Tools like this could level the playing field for smaller teams without deep pockets for agencies.

Real Results: Brooks Running Puts It to the Test

Talk is cheap, but data seals the deal. In a 21-day U.S. campaign promoting the Ghost 17 running shoe, Brooks Running pitted Max Campaigns against their standard traffic setup. The goal? Drive website visits and spark interest in the new drop, all while keeping costs low.

The results were eye-opening:

No manual interventions needed during the test. Emma Lane, National Paid Media Lead at Brooks, shared: "Reddit Max saves valuable time by automatically matching the right copy to the right asset, enabling us to quickly test and identify the most effective creative combinations." For a brand like Brooks, which thrives on connecting with fitness communities, this meant more efficient storytelling in spaces like r/running or r/Fitness.

Broader tests back this up. In beta runs with over 600 advertisers, Max Campaigns achieved 17% lower cost per acquisition (CPA) and 27% higher conversions compared to manual campaigns. That's huge when Reddit's ad revenue grew 74% year-over-year last quarter, signaling brands are already pouring more budget into full-funnel plays.

But it's not all smooth sailing. Early adopters note the beta's learning curve for uploading diverse creatives—Brooks succeeded with a high-volume set, but skimping could limit AI's magic. Still, for performance marketers, the efficiency gains are hard to ignore.

How Reddit's AI Stands Out in a Crowded Field

Reddit isn't reinventing the wheel, but it's fitting it to its quirky roads. While Meta's tools excel in broad reach and Google's in search intent, Reddit's Community Intelligence taps into unfiltered opinions. Think about it: Users here debate products passionately, creating a richer signal for AI than polished feeds elsewhere.

This has ripple effects. As AI chatbots like ChatGPT scrape web data, strong Reddit presence could amplify brand visibility in conversational search. A recent eMarketer report highlights that 40% of marketers now use AI for social management—up from 25% last year—with platforms like Reddit leading in niche targeting.

Take the creator economy angle. Influencers on Reddit often build cults in subreddits; Max Campaigns could help brands pair ads with these organic discussions, boosting authenticity. Imagine a gaming brand targeting r/gaming with AI-optimized creatives informed by user threads—conversions could skyrocket without feeling salesy.

Challenges remain, though. Reddit's ad ecosystem is maturing, but transparency complaints linger from past iterations. Max addresses this by showing AI decisions tied to community data, but regulators watching AI in ads (hello, EU's AI Act) might scrutinize it soon.

Why Marketers Should Jump on Board Now

If you're sidelined Reddit because setup felt daunting, Max Campaigns flips the script. With ROAS jumping from 2.3x to 4.7x post-algorithm tweaks last year, and cost per conversion down 40% for many verticals, the platform's ripe for experimentation.

Start small: Test with traffic or conversion goals in beta. Focus on diverse creatives and let the AI iterate. For B2C brands in tech, fitness, or entertainment, Reddit's engaged users—110 million daily actives—offer untapped potential.

Looking ahead, expect integrations with third-party tools and more granular controls as the beta evolves. As social commerce heats up, this could pave the way for shoppable ads optimized by community vibes.

Bottom line? In a year where ad fatigue is real, Reddit's AI push reminds us that smarter tech, rooted in genuine conversations, wins. Time to dust off those Reddit strategies.