Reddit acquires Memorable AI start-up to boost the creation of more effective and personalized ads.
In its first acquisition since going public in March, Reddit has purchased the artificial intelligence start-up Memorable AI, with the goal of helping its advertisers create more engaging and personalized ads.
Memorable AI, used by companies such as Unilever, Mars, and ExxonMobil, utilizes artificial intelligence and machine learning to analyze human behavior and use those insights to create effective ads and predict their conversion rate. This technology will be made available to Reddit advertisers, providing data-driven feedback on creative ads and analyzing data from past advertising campaigns to offer improvement suggestions that drive progress towards key performance indicators (KPIs).
The 15 employees of Memorable AI will join Reddit’s advertising team, allowing the platform to “accelerate the optimization, generation, and selection of creative ads to deliver better results to advertisers.”
This acquisition follows Reddit’s previous purchases of other AI start-ups like Spell, MeaningCloud, and Spiketrap, which have helped improve content recommendations and ad placements. With this new addition, Reddit is positioning itself more competitively against giants such as Google, Meta, Amazon, and TikTok, which have expanded their AI-driven ad creation and optimization tools over the past year.
The integration of Memorable AI will also strengthen Reddit’s advertising revenue, which generated $804 million in ad sales in 2023.