Reddit’s AI advertising ambitions are being driven by two key engineers who joined the company through its strategic acquisition of Memorable AI in August 2024. The deal, valued at just under $40 million including performance-based earnouts, brought crucial AI talent and technology to the social media platform.
Sebastian Acevedo, cofounder and former CEO of Memorable AI, now leads product development for Reddit’s new ads media intelligence team. This team represents a significant strategic initiative, combining creative performance data with Reddit’s advertising AI models to deliver better results for advertisers. Before the acquisition, Memorable AI had built an impressive client roster including major brands like Unilever, Mars, and L’Oréal.
Camilo Fosco, who cofounded Memorable AI and served as its chief technology officer, now heads engineering for the ads intelligence team. Fosco brings deep technical expertise to Reddit, holding a doctorate in computer science from MIT with research specializing in computer vision and cognitive science—disciplines that are fundamental to understanding how visual content captures human attention.
Memorable AI’s core technology uses AI models to predict which images and videos will capture users’ attention and drive engagement with advertisements. This capability addresses a critical gap in digital advertising: understanding not just where to place ads, but what creative elements will resonate most effectively with audiences. By analyzing visual content through AI, the technology can forecast performance before campaigns launch, potentially saving advertisers significant time and money.
The acquisition represents Reddit’s commitment to enhancing its advertising platform through artificial intelligence. As digital advertising becomes increasingly competitive, platforms that can demonstrate superior ad performance and return on investment have a significant advantage. Reddit’s integration of Memorable AI’s technology aims to provide advertisers with data-driven insights about creative effectiveness—a capability that could differentiate the platform in the crowded social media advertising market.
Both engineers have been recognized on Business Insider’s AI Power List, highlighting their influence in the artificial intelligence industry. Their work at Reddit represents the convergence of academic AI research, startup innovation, and platform-scale implementation, positioning Reddit to compete more effectively in the AI-powered advertising space.
Key Quotes
The acquisition of Memorable AI, coupled with its focus on creative effectiveness, now gives Reddit the missing piece to continue improving performance for our advertisers
Camilo Fosco, who leads engineering for Reddit’s ads intelligence team, explained how the acquisition fills a strategic gap in Reddit’s advertising capabilities, emphasizing that AI-powered creative analysis was the missing component in their advertising optimization efforts.
I believe this is just the beginning
Fosco’s statement suggests that Reddit’s AI ambitions extend beyond the initial integration of Memorable AI’s technology, hinting at broader plans for artificial intelligence in advertising and potentially other areas of the platform.
Our Take
Reddit’s acquisition strategy reveals an important trend in the AI landscape: platforms are buying proven AI technology rather than building from scratch. By acquiring Memorable AI with its established enterprise clients and validated technology, Reddit gained immediate credibility in AI-powered advertising while avoiding years of development time. The retention of both cofounders in senior leadership roles is particularly noteworthy—it suggests Reddit values not just the technology but the expertise and vision of the team. The focus on creative effectiveness through computer vision represents a sophisticated application of AI that goes beyond simple targeting algorithms. As advertising becomes Reddit’s primary revenue driver, especially post-IPO, these AI capabilities could prove crucial for competing against Meta, Google, and other advertising giants. The MIT-level research expertise combined with startup execution experience creates a powerful combination that could accelerate Reddit’s AI development across multiple areas beyond advertising.
Why This Matters
This development signals Reddit’s serious commitment to AI-driven advertising innovation at a time when social media platforms are racing to leverage artificial intelligence for competitive advantage. The acquisition of Memorable AI and its founding team represents more than just a technology purchase—it’s a strategic move to build in-house AI capabilities that could fundamentally transform how advertising works on the platform.
The focus on creative effectiveness through AI addresses a genuine pain point in digital advertising. While platforms have long optimized ad targeting and placement, predicting which creative elements will resonate remains challenging. By applying computer vision and machine learning to this problem, Reddit could help advertisers achieve better results while improving user experience through more engaging content.
For the broader AI industry, this acquisition exemplifies how AI startups are being absorbed by larger platforms seeking to rapidly build capabilities. The $40 million valuation and the retention of founders in leadership roles demonstrates how valuable specialized AI talent and technology have become. As major tech platforms compete for AI dominance, expect more acquisitions of AI startups with proven technology and enterprise clients, particularly in areas like advertising that directly impact revenue generation.
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Source: https://www.businessinsider.com/camilo-fosco-sebastian-acevedo-reddit-ai-power-list-2024