Netflix’s ad-supported tier has surged to 70 million users globally. This is a significant increase from 40 million in May and 22 million in January. Clearly, this growth is attracting attention from marketers.
Strong Growth and Market Trends
Amy Reinhard, Netflix’s President of Advertising, noted that ad plans now account for over 50% of new sign-ups in key markets. Furthermore, U.S. advertisers are focusing on the tier’s ability to generate more impressions in local markets, which is essential for targeted campaigns.
Success in Live Sports and Partnerships
The ad-supported model is already showing impressive results. For instance, Netflix sold out all commercial slots for its Christmas Day NFL broadcasts, marking its first venture into live sports. In addition, Netflix has partnered with Kia to run a commercial series for its “New Sportage” SUV in Korea. As part of the collaboration, a pop-up event will take place in Seoul.
Expanding Ad Tech and Analytics
Moreover, Netflix is heavily investing in ad tech. It is collaborating with VideoAmp, Nielsen, and regional firms like Kantar Ibope CAV in Brazil and Barb in the U.K. These partnerships will help improve cross-screen and live viewership analytics. Additionally, Netflix’s NFL broadcasts in the U.S. will now feature Nielsen-backed metrics, integrating first-party data for more accurate insights.
Ad Tech Growth in Canada and Global Rollout
In Canada, Netflix has launched its own ad tech, replacing its partnership with Microsoft. The global rollout of this technology is set for 2025. As a result, the new tech will enhance targeting, forecasting, and reporting for advertisers, further strengthening Netflix’s position in the market.
Conclusion
In conclusion, Netflix’s ad-supported subscription continues to grow rapidly. With a strong subscriber base and continuous investment in cutting-edge ad technology, Netflix is reshaping the streaming and advertising landscapes. Ultimately, the company’s future depends on the seamless integration of ads and innovation.
