Bid Strategy
Definition
The method by which Reddit Ads Manager determines how to spend budget in the ad auction. Options include Automated Bidding (Reddit optimizes for the campaign objective) and Manual Bidding (advertiser sets a maximum cost-per-click or CPM).
Context
Reddit's automated bidding has improved alongside its AI targeting updates. For conversion-objective campaigns with sufficient Pixel or CAPI data, automated bidding typically outperforms manual after the initial learning period. Most advertisers find switching to manual bidding prematurely is the most common post-launch optimization error.
Relevance to Reddit
Automated bidding is recommended for new campaigns — the algorithm needs volume to optimize. Manual bidding gives experienced advertisers greater cost control but requires sufficient historical conversion data to set efficient bid amounts. For conversion-objective campaigns, allow 7–14 days and 50+ conversion events for the learning period to complete.
