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Reddit is acquiring the ad creative optimization company Memorable AI in a bid to give advertisers more tools on its ad-supported platform, the company announced on Thursday.
As part of the acquisition, advertisers on Reddit can use Memorable AI’s tech, which uses AI to help advertisers plan and optimize creative assets for their campaigns. According to Memorable AI’s website, advertisers including L’Oréal and Unilever have used the platform in the past.
The acquisition could bolster Reddit’s pitch to performance-oriented advertisers, which COO Jen Wong recently said was a focus for the company.
“This acquisition allows Reddit to accelerate our work in optimizing, generating, and selecting ad creative to deliver even better results for advertisers,” Wong said in a press release.
So what? Since going public in March, Reddit is getting serious about its advertising business. The platform, which is competing against established advertising giants like Facebook and fast-growing platforms like TikTok, recently struck a number of partnerships with advertising vendors to bolster its offerings to brands. In June, the company inked deals with brand safety vendors Integral Ad Science and DoubleVerify in an effort to alleviate long-standing brand safety concerns about the platform.
Today’s deal, though, marks Reddit’s first acquisition as a publicly traded company. In 2022, the platform went on a spending spree, acquiring machine-learning platform Spell, natural language processing company MeaningCloud, and contextual advertising company Spiketrap.
A Reddit spokesperson declined to say how much Reddit spent to acquire Memorable AI.