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I think the differentiation is in who’s placing the ad.
There were sponsored ads before where a company reached out to Reddit and bought advertisements and read it took the money for them and posted them. They were labeled as sponsored.
But since the beginning of Reddit, advertising firms have just posted nearly blatant ads without notifying anyone.
Sounds to me like reddit’s just removing he sponsored indicator from their sponsored ad sales.
if they were to actually ban it, it’s collectively good for our attention spans, But honestly it’s a quelling of free speech, and a monetary hit to the lowest incomes of America.