Reddit Launches Collection Ads and Shopping Carousels Targeting Beauty Brands

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3.25.2026

Quick Facts

Reddit launched Collection Ads combining lifestyle images with shoppable product tiles, delivering 8% ROAS lift for early adopters
Beauty-related shopping conversations increased 60% year-over-year with 76% more views to beauty discussions in 2025
Platform revenue grew 69% to $2.2 billion in 2025, with Dynamic Product Ads delivering 91% higher ROAS than previous year

Reddit unveiled new shopping advertising tools at Shoptalk 2026, expanding its commerce capabilities as beauty brands drive significant growth on the platform.

The company introduced Collection Ads, a new format that pairs lifestyle hero images with shoppable product tiles in a single carousel. Early adopters following best practices are seeing an 8% ROAS lift compared to standard Dynamic Product Ads.

Reddit also announced Reddit-specific overlays that highlight signals like “Redditors’ Top Pick” and surface discounts, along with an early-stage Shopify integration.

Beauty conversations tied to shopping have surged 60% year-over-year, while overall beauty discussion views jumped 76% in 2025. The platform reported 443.8 million weekly active users in Q3 2025, up from 365.4 million the previous year.

“We’ve shifted from the ‘experimental’ phase to multiyear, multiregion partnerships with the world’s largest beauty groups, including Sephora and Ulta Beauty,” said Paulita David, head of U.S. large customer sales at Reddit.

Reddit’s Dynamic Product Ads delivered an average 91% higher ROAS year-over-year in Q4 2025. Liquid I.V. reported that DPA accounts for 33% of its total platform revenue and outperforms other conversion campaigns by 40%.

Laneige achieved a 50% higher click-through rate than Reddit’s beauty vertical benchmark and a 42% higher video completion rate for six-second videos.

The platform is also piloting AI-powered shopping carousels that transform community recommendations into shoppable product displays. Products are surfaced from items mentioned in Reddit posts and comments, not just ad inventory.

“Reddit is now a standard line item in beauty RFPs; it’s no longer a question of if a beauty brand should be on Reddit, but how,” David said.

Established beauty communities like Skincare Addiction (1.4 million subscribers, founded 2012) and Makeup Addiction (3.2 million subscribers, founded 2010) provide the foundation for this growth.

Reddit reported Q4 2025 revenue of $726 million, up 70% year-over-year, with ad revenue increasing 75% to $690 million. Overall 2025 revenue reached $2.2 billion, growing 69% from the previous year.