Reddit (NYSE:RDDT) stock is in the red today despite a promising new deal for advertisers on the popular web forum. Indeed, Reddit has partnered with Integral Ad Science (NASDAQ:IAS), a global media and optimization company, to give advertisers on the platform increased ability to grow their campaigns via IAS’s artificial intelligence (AI) powered Total Media Quality (TMQ) product line.
“Third party validation underscores our commitment to equipping Reddit advertisers with the tools they need to confidently grow on our platform,” said Jim Squires, executive vice president of business marketing and growth at Reddit. “With IAS, we’re giving our clients a clear understanding of where their ads are appearing and how they’re delivering on Reddit, increasing confidence and allowing them to focus on what matters: developing their campaign strategy and creative.”
As part of the deal, advertisers on the site will have greater access to data and analytics related to their advertising campaign. This includes info on the reach and engagement with Reddit’s more than 100,000+ subreddits.
Global Reddit advertisers will be able to protect their ad campaigns by using IAS’s independent Brand Safety and Suitability, Viewability, and Invalid Traffic (IVT) measurement tools.
“Our partnership will give Reddit customers additional confidence that their ads are appearing alongside content that aligns with their brand values via reliable and accurate data, so they can focus on driving business growth within Reddit’s uniquely valuable archive of human experience,” said Lisa Utzschneider, CEO of IAS.
RDDT Stock Slides on Deal Despite Strong Post-IPO Performance Overall
While RDDT is down today, the stock has performed admirably in the three months following its initial public offering (IPO) in late March.
Indeed, RDDT stock is up about 28% year-to-date, well above the performance of both the S&P 500 and Nasdaq Composite over the same period.
Not for nothing, Reddit’s high-profile IPO was followed up by a number of promising news items for the company. This includes a deal with ChatGPT creator OpenAI just last month.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
