Netflix announced on Wednesday that its ad supported plan now has 40m global monthly users and will be launching an in-house advertising technology platform by the end of 2025. This is expected to give advertisers new ways to buy, new insights to leverage, and new ways to measure impact.
Cameron Diaz is coming out of retirement and teaming with Jamie Foxx on a new action comedy, Back In Action. Source: Netflix.
Strategic partners
“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,” said Amy Reinhard, Netflix’s president of advertising.
Reinhard was speaking at Netflix's second Upfront presentation to potential advertisers.
She announced Netflix's plan to introduce strategic partners like Affinity Solutions, DoubleVerify, and others as a commitment to providing advertisers with cutting-edge tools for campaign measurement and verification. Moreover, the expansion of buying capabilities to include prominent players like The Trade Desk and Google's Display & Video 360 may amplify the platform's appeal to advertisers seeking innovative solutions.
Bela Bajaria, Netflix's chief content officer said audience engagement is a cornerstone of the platform's success.
“Our audiences are highly engaged — and by engaged I mean that they are choosing to spend their time watching Netflix. That’s important because engagement is the key to success in streaming. When people watch our shows and movies, they get more value from Netflix, they stick around longer, and they’re more likely to recommend us to their friends. And this matters to all of you because you want to be where the audiences are, too," said Bajara.
According to Netflix, ad-supported members are demonstrating remarkable engagement metrics—watching for over 10 hours a month on average.
Growth and momentum
Netflix's influence extends beyond the screen, as Marian Lee, chief marketing officer, discusses the phenomenon known as the "Netflix Effect," where the platform's content shapes cultural conversations. This influence presents advertisers with unique opportunities to engage with a devoted fan base across various touchpoints.
All of these enhancements are designed to make Netflix even better for clients. "We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience. We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands,” said Reinhard.
In closing, Peter Naylor, vice president of advertising said: “There’s a lot to be excited about over the next year. But the story of ads on Netflix this year is pretty simple: It’s about growth and momentum.”
