Netflix's ad server: a win-win for entertainment

From Deadline: Netflix‘s 18-month-old advertising tier has nearly doubled in size since the start of 2024, reaching 40 million monthly active users around the world. The #streaming giant revealed the number at its first in-person upfronts presentation in New York. Last year, in a presentation conducted in a virtual format due to the WGA strike, the company said it had 5 million MAUs, and the number grew to 23 million by January. Netflix President of #Advertising Amy Reinhard told the crowd that 40% of all signups now come from the ads plan in countries where it is available. Pricing plays a role in that – at $7 a month, the plan is well below many other services and the company’s own ad-free options. In addition to the stats, Reinhard announced Netflix will launch an in-house ad tech platform. This will give advertisers new ways to buy, new insights to leverage, and new ways to measure impact. “Bringing our ad #tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” she said. Chief Content Officer Bela Bajaria unveiled a number of new #film and #TV titles, but she also spent time giving advertisers a sense of audience engagement. More than 70% of Netflix’s ad-supported subscribers watch for more than 10 hours a month, according to Nielsen, a 15% higher level of viewing than the nearest competitor.

With Netflix launching its own ad tech, the landscape of digital advertising is set for a seismic shift. Netflix's recent launch of its own ad tech platform marks a pivotal moment in the evolution of digital advertising, particularly within the realm of CTV advertising. With a rapidly expanding ad-supported viewership now reaching 40mn monthly active users worldwide, Netflix emerges as a formidable advertising platform offering access to a highly engaged audience. This strategic move underscores Netflix's dedication to improving the advertising experience, providing advertisers with enhanced control and transparency. Additionally, Netflix's expansion into live events and sports programming aims to further drive engagement, offering advertisers real-time connection opportunities. These initiatives solidify Netflix's position as a major player in CTV advertising, promising impactful results for advertisers. In future, Netflix opening up to more DSPs will make traditional TV broadcasters lean into programmatic quicker. Exciting times ahead! #CTVAdvertising #adTech #Programmatic

Netflix says it's ads business is transitioning from the "crawl" to "walk" phase - and the next step is standing up its own ad tech stack. Check out the full story on AdExchanger: https://lnkd.in/e5zFitYp

Netflix is the latest titan to recognize the value of programmatic advertising with the announcement of its strategy to distribute unsold OTT/CTV ad space across several different providers. The Trade Desk, Google DV360, Magnite are cited as the next batch of providers. Up until now, CTV media buyers had to go through Microsoft Xandr DSP or book with Netflix publisher-direct. It reminds me of the moment when Lamar Advertising Company took the same bold step to ensure their unsold space was programmatically available in top notch, third party SSP platforms like Place Exchange and others. It’s a rite of passage. Expanding the surface area of buy-side and sell-side platforms unlocks massive revenue dollars, when done right. Some of the smartest people in the world of business work at Netflix. This is proof of that. Many hands make light work! This layers on a new dimension for marketers when they say that they can now “Netflix and Chilll”. 📺😎👏🏼 #programmaticadvertising #ctv #innovation #followthemoney https://lnkd.in/gJU9ytZi

Netflix Poised for Big Investment in Ad Tech—Less than two years after adding ads to Netflix, the original SVOD service is ready to double-down on opportunities in advertising, striking deals with The Trade Desk, Magnite, and Google, and announcing plans to build its own ad-tech platform by the end of 2025. Netflix is confirming what we at FreeCast have been saying (and they’re in position to know well): To make money in the new media landscape will require an effective use of ad-tech. Companies will have to embrace the latest and best technologies and become adept at using them. Old “phone it in” strategies from the old days of Nielsen numbers guiding decisions will not work anymore. Netflix is preparing for that future, gearing up to compete and get every penny it can out of advertising, with Netflix’s ad-supported tier here to stay. #nextgenstreaming #freecast #nomoreappdiving #streamingwars https://lnkd.in/eCqBaBAm

🚀 Netflix's ad-supported tier has seen significant growth, reaching 40 million monthly active users globally, nearly double the 23 million reported in January. This expansion reflects a potential shift in consumer behavior as economic pressures mount. The ad tier, while currently representing approximately 16% of Netflix's total subscriber base, offers a more cost-conscious option for viewers seeking to manage their streaming subscriptions. In South Africa, where economic conditions may be similar, this tier could prove particularly attractive to cost-conscious consumers. Furthermore, Netflix announced the development of its own ad technology platform. This move signals a commitment to building robust measurement and verification capabilities, crucial for attracting advertisers. Additionally, the company plans to leverage established ad tech partners like Magnite to sell inventory and make The Trade Desk and DV360 primary programmatic partners. Prioritizing ad technology development suggests a strategic approach to establishing trust with advertisers and unlocking significant revenue potential within the ad-supported tier. #Netflix #AdTech #Google #Programmatic

The rate of change in the digital marketing landscape has increased so much, it's hard to keep up! I also don't know what to call "breaking news" anymore, without sounding like a breaking record, but having said that, it's pretty big that Netflix's President of Advertising, Amy Reinhard, announced that Netflix will be rolling out a proprietary ad tech platform. Its ad-supported plan currently has 40 million monthly active users globally, which is up from 23 million in January, and 5 million a year ago. Now that's significant growth! According to Netflix' VP of Global Advertising sales Peter Naylor, "it's about growth and momentum" this year. Whilst the Netflix ad tech platform is only expected to roll out at the end of 2025, Netflix inventory will soon become available through Google's Display & Video 360. #netflix #CTV #onlineadvertising

Netflix made a big announcement during its Upfronts presentation, revealing plans to launch its own advertising technology platform just a year and a half after entering the ads business. This move puts it in direct competition with industry giants like Google, Amazon, and Comcast. Initially, Netflix partnered with Microsoft for its ad tech, but now it's bringing the technology in-house, indicating a significant shift in its advertising strategy. This change will give Netflix more control over creating targeted and personalized ad experiences for its massive user base of 270 million subscribers. Netflix aims to move away from generic advertisements and experiment with "episodic" campaigns that tell a story rather than repeating the same ads. Additionally, Netflix is expanding its buying capabilities by partnering with platforms like The Trade Desk, Google’s Display & Video 360, and Magnite. The company also shared the success of its ad-supported tier, noting that it has 40 million monthly active users globally, with 5 million users joining within six months of its launch. #PPC

The rapid growth of Netflix's ad-supported tier is a significant shift in the #streaminglandscape, with major implications for advertisers and the broader media industry. A few key takeaways: 1. Netflix's ad tier has reached 40 million subscribers globally, with 40% of new sign-ups choosing the ad-supported plan where available. This demonstrates strong consumer demand for a lower-cost streaming option with ads. 2. The ad tier is attracting a younger audience, with 70% under 50 and a median age of 34. This provides advertisers access to a coveted demographic that is increasingly difficult to reach through traditional TV. 3. Netflix's ad load of 4–5 minutes per hour is lower than most linear TV, creating a more premium and less cluttered environment for brands. This, combined with the highly engaged audience, could lead to stronger ad recall and brand impact. 4. However, some popular titles are still unavailable on the ad tier due to licensing restrictions. Netflix will need to renegotiate deals to bring more content to the ad plan to maintain parity with the ad-free tiers. 5. The rapid growth of Netflix's ad tier, along with the ad-supported launches of Disney+, Hulu, and others, is intensifying competition for ad dollars with traditional TV. In summary, the mass adoption of Netflix's #adtier signals a tipping point in the #streamingwars. Advertisers now have access to a massive, young, engaged audience on a premium platform. But the landscape is rapidly evolving, and those who can most effectively navigate the new streaming ecosystem will reap the rewards. Bibliography: https://lnkd.in/dsi8DjAA https://lnkd.in/duEnh-SS https://lnkd.in/dqApYwNN https://lnkd.in/d9VQxysx https://lnkd.in/dx_wrF8i

Netflix's Ad-Supported Plan now has 70M+ Global Viewers. Here's why it’s a game changer for the OTT market. Netflix's ad-supported tier is soaring. Its ad-supported tier now reaches 70 million users around the globe, compared with the 40 million it revealed in May and the 22 million it cited in January . This impressive growth is making Netflix a major player in the advertising world. Which means, it can become one of the next advertising giants. More interesting takeaways: - Netflix is taking control of its advertising future by launching its own ad platform, ending its partnership with Microsoft. - The new platform will be tested in Canada later this year, paving the way for a global rollout. - Netflix is committed to expanding its ad-supported tier, making it a major player in the advertising landscape. // What this means for you // 1/. More affordable access. Netflix's ad-supported tier provides a more affordable way to enjoy its vast library of content. 2. Increased competition The rise of Netflix as an advertising giant will bring more competition to the market, potentially leading to better ad experiences and lower prices for consumers. 3. New opportunities The ad platform will offer new opportunities for businesses to reach a large and engaged audience. P.S. What are your thoughts on Netflix's ad-supported tier?