Digital advertising spending in 2026 is expected to expand unevenly.
According to the IAB’s 2026 Outlook Study, overall US ad spend is projected to grow by 9.5% this year, with social media advertising growing 14.6%, well outperforming the broader industry
However, growth is not evenly spread across advertiser sizes, with larger consumer firms lowering marketing expenditure as one of the fastest ways to maintain profitability amid wary consumers and narrowing margins. That’s the backdrop in which Reddit, Inc. (NYSE:RDDT) is placing a significant bet: while the biggest social platforms compete for the same narrowing pool of massive brand advertisers, Reddit is slowly opening the door to small and medium-sized businesses that couldn’t previously manage the cost of creating a personalized ad campaign. Community Intelligence That shift became clear when Reddit, Inc. (NYSE:RDDT) released a beta version of Reddit Community Intelligence on July 10, an AI-powered, free-form ad generator that provides advertisers with AI-generated creative recommendations customized to certain communities instead of forcing them to start from scratch.
The tool is deliberately designed to make campaign creation easier for advertisers targeting community-specific audiences, which have traditionally found platform advertising too resource-intensive to bother with. Wall Street research desks realized the structural significance of the self-service shift. On July 13, Citizens analyst Andrew Boone confirmed his Market Outperform rating and $240 price target for Reddit, Inc. (NYSE:RDDT), citing automated self-service technologies as a key revenue driver.