Netflix plans to create its own advertising platform as more users sign up for an ad-supported package in an effort to save money.
Netflix advertising
The growing popularity of advertising
Netflix has announced its desire to launch an advertising platform in its streaming service, reports The Information. The company's ad inventory will be available on a variety of advertising platforms, including Google's Display & Video 360, The Trade Desk and Magnite. These companies join Microsoft's Xandr, which helped launch Netflix's ad platform in late 2022.
Subscriber growth with advertising
According to Netflix, there are currently over 40 million monthly subscribers active users worldwide are subscribed to an ad-supported package, compared to 5 million a year ago. The Verge claims that in April the service had 270 million subscribers across all levels. In regions where ads are available, more than 40% of new users choose an ad-supported tier.
Innovative ad formats
Although Netflix did not reveal details about how it will deliver ads, it is likely that the company will abandon standard ads, writes TechCrunch. Instead, we can expect more innovative and in-content advertising formats that will not disrupt video viewing.
Glossary
- Netflix is a leading streaming platform offering movies, series and original content.
- Display & Video 360 - Google's advertising platform for managing video advertising and advertisements.
- The Trade Desk is a technology company specializing in programmatic advertising.
- Magnite is a company engaged in the management and sale of advertising inventory.
- Microsoft Xandr is a programmatic ad buying platform that helped launch ads on Netflix.
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Answers to questions
How many monthly active users does ad-supported Netflix have?
What ad platforms will work with Netflix's own ad platform?
What percentage of new users sign up for an ad-supported plan in regions where it is available?
How many total subscribers did Netflix have in April 2023?
How does Netflix plan to deliver ads to its users?
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Discussion of the topic – Netflix has 40 million ad-supported users and is launching its own advertising platform
Netflix plans to launch an ad platform on its streaming service for its 40 million ad-supported users. Ad inventory will be available on multiple ad platforms, including Google's Display & Video 360 and The Trade Desk.
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Олексій
Do you see potential for Netflix to evolve into personalized advertising? Their database of user preferences can be a goldmine for targeted marketing. 👀
Емма
I agree, Oleksiy! If they can put their user data to good use, it can be very profitable for advertisers. However, they should be careful not to overload their followers with excessive advertising. 💭
Франц
And won't advertising drive away some of the paid subscribers? I think this is a risky move for Netflix. Although, if they can make it interesting and personalized, maybe it will work. 🤔
Юлія
I think this is a step in the right direction for Netflix. They can offer a free tier with ads to attract new users and then convince them to upgrade to a paid subscription. This will help them expand their user base. 💡
Василь
Good idea, Julia! But if they can integrate advertising into their content, for example, in the form of product placement, it can be a very interesting and creative solution. 🎥
Ганс
All this advertising is real nonsense! 😡 I want to watch my favorite shows in peace without any interruptions. If Netflix starts cluttering my experience with ads, I will immediately cancel their service!
Софія
Hans, I understand your concern, but think about it from another angle. If advertising helps make the platform more accessible to more people, that could be a positive step. The main thing is that they do not abuse it. 🙂
Пабло
It seems to me that Netflix is just trying to stay competitive in the market. With the emergence of players like Disney+ and HBO Max, they need to find new ways to make money and attract audiences. Advertising can help them do this. 💰