Reddit's Shopify integration boosts ad growth and advertiser adoption, shares rise 4%.

Reddit has expanded its integration with Shopify from testing to general availability, allowing Shopify merchants to connect their stores directly to Reddit's advertising platform. This integration automates catalog uploads and pixel setup, enabling faster deployment of Reddit’s Dynamic Product Ads and real-time syncing of product data. Jefferies analysts see this as a key driver for growth in Reddit's lower-funnel advertising business and broader adoption among small and mid-sized businesses globally, especially outside the U.S. Reddit’s advertising base grew 75% year-over-year in Q1, supported by strong ad performance and increased spending from existing clients.