Reddit acquires Memorable AI to enhance advertising technology
Reddit has acquired Memorable AI, a startup known for its cognitive processing technology, marking the first acquisition by the company since going public in March. The startup’s platform utilizes machine learning and generative AI to improve advertising by understanding human cognitive thinking about ads.
Camilo Fosco and Sebastian Acevedo co-founded Memorable AI. The startup specializes in analyzing human reactions to visual content so that advertisements can be better targeted and creatively optimized. Fosco, who has a PhD from MIT, brings experience with cognitive processes and machine learning at Reddit as a senior group product manager. Acevedo will be the company’s Senior ML Engineering Manager.
As part of our continued commitment to providing unique products and solutions that help businesses grow, we’re thrilled to announce we’ve acquired Memorable AI, a leader in the ad creative optimization space. https://t.co/kzBKJclFPl
— Reddit for Business (@RedditforBiz) August 1, 2024
Key figures steer Reddit’s AI expansion
Fosco and Acevedo, who have now joined Reddit’s leadership team, have significant backgrounds in artificial intelligence and cognitive science. Fosco’s MIT research into human cognition strengthens Memorable AI’s technology, which has been effectively used to enhance ad performance for clients such as Unilever and L’Oreal. The platform provides campaign guidance by generating actionable insights from millions of human responses to ads.
Memorable AI has seen rapid growth recently, with more than $1 million in revenue and $2.75 million from investors such as Aperiam Ventures and Bertelsmann Digital Media Investments.
The startup uses a large AI foundation model that assesses how ads affect cognition to give advertisers accurate measures of click-through rates, engagement, and conversion rates (CR). This data-driven approach allows for strategic ad creation and placement that aligns with Reddit’s goals of improving user experience while increasing advertiser success rates.
Reddit expands AI-driven Ad tools
Incorporating the technology of Memorable AI will allow the company to provide more personalized and effective ad solutions. This means that they will make use of AI for creative optimization as well as real-time performance analysis. Memorable AI’s focus on cognitive science gives the company tools to understand and predict consumer behavior while increasing its capability of delivering relevant and engaging ads.
Reddit’s advertising tech is set to improve with the incorporation of Memorable AI. Some possible advancements include better video ad creation, instantaneous optimization of ad placements, and an increase in its advertising reach on different platforms. This will create more personalized and impactful ad strategies that work for both advertisers and users.
