AI News Monitor

Shares of Reddit jumped more than 5% on Tuesday after the social media platform unveiled new artificial intelligence-driven advertising tools designed to help brands better engage with its vast network of online communities.

The two features, announced Monday at the Cannes Lions International Festival of Creativity, include Reddit Insights, a real-time trend analysis tool for marketers, and Conversation Summary Add-ons, which allows brands to display user-generated content beneath their ads. Both are powered by Reddit’s proprietary Community Intelligence engine, which the company says transforms discussions into actionable marketing data.

“These are tools for a new era of community marketing,” Reddit said in a statement, emphasizing the platform’s ability to connect brands with “high-intent” audiences. Early adopters include advertising giant Publicis, which tested Reddit Insights, while Lucid and Jackbox Games experimented with the conversation-summary feature.

The rollout comes as digital platforms increasingly integrate AI to refine ad targeting and boost engagement in a challenging economic climate. Last month, Reddit reported stronger-than-expected revenue and optimistic guidance, crediting improvements in user retention and Google search traffic.

The move also follows broader industry shifts, with firms like WPP revising global ad growth forecasts amid geopolitical uncertainties. Analysts say AI-driven tools could help advertisers navigate volatility by enabling more precise campaigns.

Reddit’s stock has been volatile since its IPO last year, but the latest AI push signals its ambition to compete with larger rivals in the evolving digital ad market.