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Reddit Inc., the operator of the renowned digital forum, has made a significant leap in the realm of artificial intelligence by acquiring Memorable AI, a startup that leverages generative AI to assist marketers in crafting superior advertisements.
According to Bloomberg, Memorable AI is a New York-based company founded in 2021 that uses AI to predict advertisement effectiveness, helping marketers identify the most impactful texts, images, and videos for their promotional campaigns. This acquisition marks Reddit’s first since its initial public offering in March.
Memorable AI has developed sophisticated technology to aid advertisers in predicting the frequency of ad exposure that leads to direct actions like app downloads or website visits. By integrating Memorable’s capabilities, Reddit aims to enhance the quality of advertisements on its platform, ultimately benefiting its vast user base and advertisers alike.
Jen Wong, Reddit’s Chief Operating Officer, stated,
“This acquisition allows Reddit to accelerate our work in optimizing, generating, and selecting ad creative to deliver even better results for advertisers.”
The Memorable AI team will be joining Reddit’s advertising division, bringing their expertise and innovative solutions to enhance Reddit’s ad performance.
AI-Driven Advertising Innovation
Memorable AI has been recognized for its cutting-edge contributions to the field of AI in marketing, recently named one of Gartner’s Cool Vendors in Generative AI for Marketing 2024. The company’s AI foundation model uses state-of-the-art machine learning techniques and a comprehensive dataset to understand the dynamics between ad creative and media impact. This technology provides actionable insights into ad effectiveness, including click-through, engagement, and conversion rates.
Sebastian Acevedo, Co-Founder of Memorable AI, expressed his enthusiasm for the acquisition, stating,
“For the last three years, our focus has been on building the strongest creative intelligence product on the market. Today, we’re excited to take this technology to new heights with Reddit’s impressive customer base.”
Strategic AI Investments
Reddit’s acquisition of Memorable AI is part of its broader strategy to invest heavily in AI and machine learning technologies. The platform has previously acquired AI companies such as Spell, MeaningCloud, and Spiketrap to bolster its content recommendations and ad placements.
The social media giant generates approximately 98% of its revenue from advertisements, reporting $804 million in sales last year. Reddit has been enhancing its advertising capabilities since 2018, introducing features like shopping ads and video ads to attract more advertisers. The platform’s recent deals, including a $203 million data licensing agreement with OpenAI and Google, underscore its commitment to advancing AI-driven solutions.
Future Prospects
The integration of Memorable AI’s technology is expected to provide Reddit advertisers with advanced tools for campaign planning and performance optimization. As Reddit continues to innovate and expand its AI capabilities, it is poised to offer more effective and engaging advertising solutions, making it a valuable platform for marketers.
As the AI landscape evolves, Reddit’s strategic acquisitions and investments position it at the forefront of AI-driven advertising innovation, promising significant returns for advertisers and enhanced experiences for users.
Source: Reddit
