Similar to a market research analyst, Netflix utilized its upfront presentation to address any concerns regarding its effectiveness as an advertising platform.
Advertisers have expressed frustration with the slow-growing scale of Netflix since it introduced ads at the end of 2022. Last year, advertisers expressed their concerns about the limitations of targeting and measurement.
Netflix is determined to demonstrate that it indeed offers the advertising purchasing and measurement options that buyers are seeking.
Netflix revealed during its upfront stage on Wednesday that the number of monthly active users for its ad-supported plan has increased to 40 million globally, a significant jump from 23 million in January. Netflix has announced its intention to expand its reach by launching its own ad tech platform. Additionally, the company has formed new partnerships with various programmatic platforms and measurement vendors to further enhance its offerings.
Fully committed to advertising
Netflix has previously hinted at the possibility of bringing its ad tech in-house.
Similar to a market research analyst, Amy Reinhard, the company’s president of advertising, provided clear details about Netflix’s plans. Unlike in the past, where information was scarce, Reinhard confirmed that Netflix will launch its own ad tech platform by next year.
Testing in Canada is scheduled to commence this year, with plans to launch in the US by Q2 2025. By the end of next year, the platform will be accessible worldwide.
According to Reinhard, Netflix aims to achieve equal control over its ad tech as it has over its streaming tech. This, in turn, will provide agencies with greater control and transparency in their purchasing decisions.
Additionally, the streamer revealed that Netflix has enlisted The Trade Desk, Google’s DV360, and Magnite as its primary programmatic partners, further solidifying their position in the market.
Beginning this summer, Netflix will offer its supply through Magnite, allowing buyers to access it via The Trade Desk or DV360. Netflix currently exclusively utilizes Microsoft for programmatic ad sales through private marketplace deals.
Netflix’s move to expand its programmatic roster suggests a strategic shift away from Microsoft and a focus on developing its own ad tech platform.
Netflix has recently announced new partnerships with iSpot and TVision in the ad measurement field. These partnerships are similar to the ones they announced with Kantar, Cint, and NCSolutions last month. Netflix collaborates with Nielsen, EDO, DoubleVerify, and Integral Ad Science.
Achieving success in sports programming
Netflix presented statistics to highlight its expansion, showcasing the level of engagement and attention among its subscribers with advertisements.
As per the company’s statement, over half of its ad-supported members consume more than 20 hours of programming every month. A significant majority of individuals watch a minimum of 10 hours per month. Programmers are actively seeking methods to boost viewing time in order to maximize ad revenue.
Similar to other broadcasters, Netflix is exploring live events and sports as a strategy to increase viewing time. However, livestreaming remains uncharted territory for Netflix.
Netflix has recently secured a three-year agreement to stream NFL games on Christmas Day. Netflix recently revealed that it will soon become the exclusive platform for WWE Raw, adding to its already impressive lineup of live programming.
However, the outcome of the negotiations with advertisers this week will determine Netflix’s ability to outperform its competitors in the broadcasting industry.
