Boost Revenues By 20% While Cutting SEM Costs By Over 60%

Century Novelty, party supplier since 1951

Founded in 1951, Century Novelty offers an extensive selection of party favors, supplies, and decorations for nearly every occasion. Started as a retail store outside of Detroit, Century Novelty became a web-only business in 2004.

To see such a sharp decrease in costs was amazing, as we’ve been increasing our spend on paid search by 50% a year every year – and with Marin we not only cut spending by over 60%, but at the same time increased revenues 20%. We’re blown away at the power of Marin Software.

Ian MacDonald

VP and General Manager at Century Novelty

Century Novelties paid search programs were getting too large and very complicated

Century Novelty derives over 80% of its revenues directly from paid and organic search, so getting search engine marketing right is crucial to the company’s bottomline. Century Novelty has been using paid search for eight years, making it one of the first retailers to experiment with SEM. Paid search helps Century Novelty attract first-time customers, who are crucial in the party supply industry, where “every customer is a new customer,” said Ian MacDonald, VP and General Manager of Century Novelty. Often, customers make a single purchase for a standalone event, so Century Novelty must use every tool at its disposal to attract new customers on an ongoing basis.

Paid search has delivered impressive results for Century Novelty. Growing its paid search spend 50% a year on average since it began its SEM program, the company has grown overall revenues by 20% a year, every year. But Century Novelty soon realized its paid search program, which today encompasses more than 45,000 keywords, was becoming too large and complex to manage, measure, and optimize with the tools it had been using for the past few years. Century Novelty needed a sophisticated paid search management application that would enable it to accelerate the growth of search-driven revenues, while at the same time continuing to optimize its current SEM program.

Setting granular ROI goals for bid management paid off well for Century Novelty

After a comprehensive review of the paid search management applications on the market, Century Novelty chose Marin Software based on the strength of its robust technology, cutting-edge features, and expert client services team. In addition, Century Novelty chose Marin Software for its easy-to-use interface, cross-publisher automated bidding platform, and sophisticated analytics features. In particular, Century Novelty was impressed with the ability to set granular ROI goals for bid management that take into account the true cost of goods sold at the keyword, ad group, and campaign level, as well as the ability to easily replicate campaigns across all publishers. Century Novelty also liked Marin’s automated reporting features that allow its search marketing team to get an accurate picture of daily ROI and profit margin, comparing results across publishers from one integrated interface.

SEM costs cut by 62%

Marin Software has delivered impressive results to Century Novelty. Due to streamlined bidding across all three publishers, optimized bidding based on granular and true-cost ROI goals, automated reporting and analytics, and increased visibility into campaign effectiveness, Century Novelty was able to decrease spending on paid search by 62% – while at the same time increasing conversion by 11% and overall revenues by 20%.

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Community-based digital spaces like Reddit offer great opportunities for advertisers to connect with their target audience. But to advertise successfully on these high-engagement platforms, you must first understand what differentiates them from other channels.

So, what exactly is a high-engagement platform?

High-engagement platforms are virtual gathering places that encourage users to participate constructively in discussions about their interests. Reddit users are not just passive viewers; they’re active participants conversing in highly specific subreddits where they invest time and energy into deep discussions.

This makes Reddit a great place to run ads that build brand awareness. Users won’t just scroll past an ad for your product; they’ll engage in a conversation about it. But to get that brand engagement from Reddit’s users, you have to advertise the right way. High-engagement platforms require advertisers to take a more authentic, non-promotional approach, which we’ll dive into in detail. But first, let’s determine if Reddit is right for you.

Should I advertise on Reddit?

Reddit knows they have a valuable audience for advertisers, so running ads there can be quite expensive. Therefore, you want to ensure that you’ll see decent ROI. Here are some indicators that Reddit is right for your brand:

Your Audience is Active on Reddit: The first step is identifying whether your target demographic uses Reddit. Tech-savvy, younger audiences (Gen Z and Millennials) frequent Reddit for in-depth discussions on everything from gaming to finance. If your product or service fits into a particular niche — like tech, fitness, or home improvement — there’s a good chance a relevant community already exists.

Your Brand Can Add Value to the Conversation: Redditors expect brands to be more than advertisers; they want them to provide value through insights, entertainment, or problem-solving. If your brand can share knowledge, tips, or solutions within a community, Reddit could be a strong fit. For example, a SaaS company could provide expert insights in subreddits like r/Entrepreneur or r/Marketing, while a beauty brand might thrive in r/SkincareAddiction by offering practical advice.

You’re Ready for Authentic Engagement: Reddit is known for its transparency and active user participation. Brands that succeed on Reddit are those willing to engage honestly and openly with users. If you're prepared to monitor feedback, respond genuinely, and build trust over time, Reddit could be an excellent platform to showcase your brand. Just make sure you’re ready to do the work.

You Have a Niche Product or Service: One of Reddit's greatest strengths is its ability to connect advertisers with communities built around specific interests. If your product serves a very targeted audience (e.g., gaming accessories, vegan food, or specialized software), Reddit’s subreddit structure will allow you to zero in on those consumers.

If you’re unsure, consider using an AI-powered forecasting tool to get a clear picture of how your campaigns will perform before you go live.

If you’ve decided Reddit Ads are right for you, we can help you get started. Here are our top tips for advertising on Reddit and other high-engagement platforms.

1. Find the right niche

Subreddits allow advertisers to target extremely specific interest groups. When creating ads, take advantage of Reddit’s robust targeting features. Make sure the subreddits you choose are relevant to your industry and target audience and have a high engagement rate.

For instance, if you're advertising a productivity app, you might consider placing ads in subreddits like r/productivity, r/getdisciplined, or even niche communities like r/bujo (for bullet journaling enthusiasts). This precision helps you ensure that your message reaches the most interested audience.

2. Use Reddit’s ‘Promoted Post’ format

One of the most popular ad formats on Reddit is the Promoted Post. This ad type appears organically within a user’s feed and blends in with regular content, making it less disruptive. Promoted Posts allow you to engage with users via comments, making them a great way to generate discussions. Redditors love to debate, so use this opportunity to ask questions and encourage comments on your ad.

Make sure the content feels native to Reddit, keeping the tone and style aligned with the subreddit you're targeting. Unlike eye-catching Instagram ads, Reddit ads should prioritize value, authenticity, and sometimes even humor to resonate with users. Which brings us to our next point…

3. Craft ads that don’t feel like ads

Reddit users are particularly sensitive to blatant marketing efforts. So, when you run ads on Reddit, it’s crucial that your content doesn’t scream, “Look at me, I’m an ad!” Instead, think about how you can provide value or spark curiosity. You might include a helpful tip, an interesting fact, or a thought-provoking question. Consider using Reddit-specific jargon or references to better connect with the audience.

For example, your creative could incorporate memes, gifs, or pop culture references that are popular within the subreddits you target. The goal is to make your ad blend into the discussions happening in the subreddit.

4. Incorporate User-Generated Content

One of the easiest ways to create an ad that feels authentic is by incorporating user-generated content (UGC) into your ads. For instance, you could highlight positive reviews or discussions about your product that have already happened on Reddit. This makes your ad feel more like a recommendation from a fellow Redditor than a direct sales pitch.

You could also sponsor an AMA (Ask Me Anything) session, where you sponsor experts in your industry to answer questions from the community. This will help establish your company as a thought leader in your industry and generate more interest in your product. Just make sure not to blatantly plug the product, as a sales pitch will make the whole thing seem insincere. A better call to action would be to offer a downloadable resource on the topics discussed, like a guide or whitepaper. You can require email submission for people to download the whitepaper then retarget them with email marketing.

5. Respond to comments

One of the biggest advantages of Reddit ads is the ability to engage directly with users in the comments section. Redditors are known for leaving detailed feedback, suggestions, or even criticisms. Brands that respond thoughtfully to comments — whether positive or negative — build credibility and trust within the community. A friendly, helpful presence in the comments can turn a critical post into a valuable interaction.

Engaging also shows that your brand is approachable and willing to listen, which is a big deal for Reddit users who prioritize transparency and authenticity. Plus, you can clarify any misconceptions or share additional insights about your product.

6. Automate campaign management

If you’re running ad campaigns on platforms like Google or Meta and want to expand to Reddit, Marin makes that easy. Our optimization suite makes creating and managing ads a breeze. Plus, it unifies all your different publisher accounts, so you can report on and manage everything in one AI-powered control center.

Reddit's marketing offering is still pretty basic, but Marin has been helping marketers manage their campaigns for decades. Determine exactly how much money you should spend on Reddit and all your other marketing channels with our Budget Optimizer. Automate campaign management with our script-based customizations and rule-based optimizations. Unlock growth opportunities with Insights. And so much more.

Curious to understand how Marin can supercharge your revenue growth on Reddit? Chat with an expert to learn more.

Century Novelty Boosts Revenues by 20% While Cutting SEM Costs by Over 60%