- Netflix closed its second 12 months of advance negotiations with advertisers, boasting a 150% increase in ad sales over 2023, based on a blog post shared Tuesday. The results were in line with company expectations.
- The streamer has struck deals with all of the key ad-holding groups, along with independent agencies and types from categories spanning automotive, CPG, tech, QSR and retail. Partnerships are in place for upcoming film and TV releases, just like the return of “Squid Game” and premiere of “Happy Gilmore 2.”
- Netflix offered greater detail on its push into programmatic promoting, including the flexibility for marketers to establish private marketplace deals via The Trade Desk, Google Display & Video 360 and Xandr, in addition to latest measurement capabilities.
Netflix reported a significant bump in ad sales in comparison with its first upfront, which refers to advance negotiations with advertisers based on soon-to-be-released content. The gain is an indication that the streamer is successfully winning more brands over to an ad-supported offering that’s nearing two years in operation. A run of dealmaking anticipates a content slate that features second seasons of mega-hits “Squid Game” and “Wednesday,” a “Happy Gilmore” sequel and the return of reality show phenomenon “Love is Blind,” along with larger bets on premium live programming, comparable to the WWE’s “Raw” and an NFL game timed to Christmas.
Netflix entered the TV promoting market in 2022 with ad prices that reportedly led some media buyers to balk. Its upfront debut last spring encountered some challenges, landing within the thick of dual writers and actors strikes and being hosted virtually, a contrast with what are typically blockbuster stage showcases.
The emergence of fiercer competition, including Amazon introducing commercials to Prime Video earlier this 12 months, has appeared to affect the streamer’s strategy. Netflix recently lowered its CPMs, or the fee to succeed in a thousand viewers, to between $20 to $30 for select inventory, Adweek reported.
Lower cost barriers to entry is one factor potentially attracting larger ad spending. Another is Netflix’s efforts to enhance its technological sophistication to match more mature digital rivals. Programmatic promoting is a key piece of the hunt for scale. In the previous few weeks, blue-chip marketers comparable to Expedia, Ford, T-Mobile, Mercedes-Benz, Novartis and American Eagle have run programmatic campaigns on Netflix, the announcement said.
Netflix has roped in a roster of ad-tech heavy hitters in The Trade Desk, Google Display & Video 360 and Microsoft’s Xandr to enable its programmatic blitz. Marketers can broker direct deals with Netflix via those platforms, a capability that’s currently available within the U.S., Canada, Brazil and Mexico and goals for a more global rollout in the approaching months. Netflix can be planning to expand the forms of programmatic buys those deals can encompass, and expects so as to add a programmatic guarantee option in November.
To track the success of campaigns, Netflix is working with Google’s campaign manager and Innovid to confirm impressions while deepening existing relationships with DoubleVerify and Integral Ad Science focused on monitoring fraud, viewability and verification. On the measurement front, Netflix is extending its suite of performance solutions to NielsenOne, Lucid, EDO, NCSolutions, Kantar and Affinity Solutions for all kinds of buys later in the autumn
Netflix is within the midst of developing a proprietary ad-tech platform, targeting a 2025 launch following tests in Canada later this 12 months. Advertising leadership can be going through transitions. Vice President of Ad Sales Peter Naylor, who helped arise the ad unit, departed in July.
Netflix’s ad-supported tier grew subscribers 34% quarter on quarter in Q2 and is vying to realize “critical ad subscriber scale” by 2025.
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