Like WBD, Netflix used its upfront presentation to dispel any doubts about its viability as an ad channel.
Since Netflix launched ads at the end of 2022, advertisers have been frustrated with its slow-growing scale. Advertisers also had some complaints last year that targeting and measurement were too limited.
But Netflix is dead set on proving that it does, in fact, have the ad buying and measurement options buyers are looking for.
From its upfront stage on Wednesday, Netflix announced that its ad-supported plan now has 40 million monthly active users globally, up from 23 million in January. Considering that level of growth, Netflix also shared plans to launch its own ad tech platform, plus new partnerships with more programmatic platforms and measurement vendors.
All-in on ads
This isn’t the first time Netflix has alluded to in-housing its ad tech.
But unlike in the past, when details were thin on the ground, Amy Reinhard, the company’s president of advertising, was clear: Netflix will roll out a proprietary ad tech platform by next year.
The company will begin testing in Canada this year, with the goal of launching in the US by Q2 2025. The platform should be globally available by the end of next year.
The goal is for Netflix to have as much control over its ad tech as it does over its streaming tech, Reinhard told buyers, and, in turn, to give agencies more control and transparency into what they’re buying.
In the meantime, the streamer also shared that The Trade Desk, Google’s DV360 and Magnite will join Microsoft as Netflix’s main programmatic partners.
Starting this summer, Netflix will make supply available through Magnite, which buyers can access through The Trade Desk or DV360. (Currently, Netflix only uses Microsoft to sell ads programmatically through private marketplace deals.)
Expanding its programmatic roster could signal Netflix’s intentions to lessen its reliance on Microsoft while it works on building an ad tech platform of its own.
And on the ad measurement front, Netflix unveiled new partnerships with iSpot and TVision, which are similar to partnerships with Kantar, Cint and NCSolutions announced last month. Netflix also works with Nielsen, EDO, DoubleVerify and Integral Ad Science.
Scoring big on sports programming
To further illustrate its growth, Netflix showcased some stats to demonstrate engagement and attention among subscribers with ads.
According to the company, more than half of its ad-supported members watch more than 20 hours of programming per month. More than 70% watch at least 10 hours per month. Programmers are on the hunt for ways to increase viewing time to generate more ad revenue.
Like many broadcasters, Netflix is looking to live events and sports as one way to boost viewing time. But livestreaming is still new territory for Netflix.
Netflix now has a deal to stream Christmas Day NFL games for three years. This addition to its live programming slate follows Netflix’s announcement in January that it will be the home of WWE Raw starting in 2025.
But it’s the negotiations with advertisers starting this week that will ultimately dictate whether Netflix has what it takes to best its broadcaster rivals.
