Netflix is using AI to make advertisements more watchable
What's the story
Global streaming giant Netflix has announced plans to revolutionize its advertising strategy by integrating generative artificial intelligence (AI) into its ad content.
The company plans to roll out these AI-enhanced ads by the end of 2025, with a full-scale launch expected in 2026.
The idea is to create commercials that are more personalized and relevant for individual viewers.
Ad evolution
Understanding generative AI ads
Generative AI ads mark a major departure from the traditional 30-second commercials.
These cutting-edge ads are generated by artificial intelligence to fit right in with what you're watching on-screen, matching tone, timing, and behavior.
For example, you might see an AI-generated product message during mid-roll breaks or after pausing a show for an item you searched earlier that day.
Audience targeting
Target audience and ad features
Netflix intends to roll out these AI-driven ads to users on its ad-supported tier, which has over 94 million monthly users.
The new ads will be context-aware, personalized, and interactive with clickable overlays, QR codes, and product placements that change according to viewer behavior.
Generative AI enables Netflix to provide advertisers with the option to target specific viewer segments with hyper-targeted messaging.
Viewer concerns
Concerns and implications of AI-driven ads
The introduction of AI-driven ads may raise questions among viewers about privacy, personalization, and the blending of fiction with marketing.
Concerns include potential disruptions to show immersion due to AI ads, transparency about when content is an ad, and the extent of behavior tracking involved in making these ad decisions.
Netflix has not yet disclosed how much data will be used or whether users can opt out of this style of ad targeting.