The company said on Thursday that Reddit is rolling out a new ad format that looks like posts from the site's users. This has been announced at a time when Reddit prepares to float its initial public offering. The free-form ads will be relatively similar to the content that users share with each other as a means of getting maximum engagement for advertisers. Though the new format will tempt advertisers, an advertisement similar to an ordinary post on a news feed is unlikely to receive users' warm welcome.

Advertisers will be able to combine several types of media-from images and videos to text-using readily available templates. In fact, according to Reddit, its ad format draws inspiration from one of the most popular forms of posts on the platform-the megathread-a kind of one-stop shop for discussing popular topics. Like megathreads, free-form ads are there to help readers dig up the information they need quickly. That would be a good way to do things like launch a product or introduce a brand to a new audience, the company says.

Like other ads on Reddit, users will be able to tell free-form ads from regular posts by means of a "Promoted" label appearing alongside the name of the company on a post.

Free-form ads were found to outperform all other types during initial tests of the new format, yielding an average 28% CTR. Additionally, community engagement increases when comments are enabled.

"Free-form ads allow advertisers to assemble an ad of any length, using multiple media types, with a look and feel natively native to the platform," said Jim Squires, Reddit's EVP of Business Marketing and Growth in a blog post. It encourages a mix of content, context, and creativity from brands while driving strong performance and brand awareness".

The new ad format is now available to all advertisers on Reddit around the globe in the Reddit Ads Manager.

Today's announcement comes just a few days after Reddit launched a suite of tools, dubbed Reddit Pro, to help businesses grow an organic presence on the platform. Reddit is probably looking to sign more brands to its service and then convert them into paying advertisers. On the occasion, Reddit marked the first time that it was doling out free tools to aid businesses in their social strategy.