Netflix takes on industry giants with in-house advertising platform
What's the story
Netflix is launching its own advertising technology platform, a move that will pit it against industry giants like Google and Amazon. The announcement was made during Netflix's Upfronts presentation. This strategic shift comes just 18 months after the streaming service first ventured into the advertising business in partnership with Microsoft. Netflix's venture into this realm will enable it to narrow the gap with competitors like Hulu, which has operated its own ad server for over a decade.
Targeted advertising
Aiming for personalized ads with in-house ad tech
Netflix's decision to bring ad technology in-house signifies a major shift in its advertising strategy. The company aims to create targeted and personalized ads for its total 270 million subscribers. "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.
Innovative approach
Netflix to experiment with 'episodic' campaigns
While specific details about the new in-house solution were not disclosed, it is expected that Netflix will move away from generic advertisements. According to Financial Times, the company is interested in experimenting with "episodic" campaigns. These campaigns will involve a series of ads telling a story rather than delivering repetitive content, marking a potential shift in Netflix's advertising approach.
Information
Expanding buying capabilities with new partnerships
Netflix has also announced plans to expand its buying capabilities this summer by partnering with The Trade Desk, Google's Display & Video 360, and Magnite. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk.
More
Ad-supported subscription plan hits 40 million users
Besides revealing plans to introduce an in-house advertising technology platform, Netflix has announced that the monthly active user base for its ad-supported subscription plan has reached 40 million. Within six months of its launch in November 2022, the ad tier attracted approximately five million users. Furthermore, subscribers to the ad plan constitute over 40% of sign-ups in countries where the plan is available.