Netflix’s second-ever upfronts have come to a close, and the streaming giant has reported a significant increase in ad sales during this year’s negotiations. With a 150% boost in ad sales compared to last year, Netflix has attracted investment from brands spanning various industries, including travel, auto, retail, fast food, and consumer-packaged goods. While specific numbers were not disclosed by Netflix, this growth trend bodes well for the company’s programmatic advertising ambitions.
In a strategic move to diversify its partnerships and take more control over its ad business, Netflix has expanded its roster of partners for ad sales. Previously exclusive to Microsoft’s Xandr for its ad-supported tier, Netflix has now started selling through one-to-one private marketplace deals with The Trade Desk and Google’s DV360. This expansion aligns with Netflix’s recent announcement to develop its own ad tech, signaling a shift towards a more independent approach in managing its advertising operations.
The timing of these developments is crucial as Netflix aims to attract larger budgets from advertisers throughout the year. The company has been actively running programmatic campaigns with major advertisers like Expedia, T-Mobile, Ford, Mercedes-Benz, American Eagle, and Novartis. By enhancing its programmatic capabilities and expanding its reach to new markets, Netflix is positioning itself to capture a broader audience of advertisers and drive more revenue through its ad offerings.
In addition to expanding its private marketplace deals to new markets, Netflix plans to introduce programmatic guaranteed deals starting in November. This move will enable automated insertion orders for advertisers, simplifying the buying process and potentially attracting traditional TV advertisers unfamiliar with programmatic bidding. Moreover, with more competitive CPM rates – now around $30 or below compared to the initial $60 – Netflix is making its ad inventory more appealing to potential buyers.
Netflix is also focusing on enhancing measurement and verification capabilities for advertisers. In the fall, all advertisers will have access to measurement reporting from leading providers like Nielsen ONE, Kantar, EDO, NCSolutions, Affinity Solutions, and Lucid by Cint. Additionally, verification tools from Innovid, Google Campaign Manager, Integral Ad Science, and DoubleVerify will be available to ensure ad viewability and validate traffic for Netflix campaigns.
To further solidify its position in the streaming landscape, Netflix’s ad-supported plan will be integrated into Barb’s Advanced Campaign Hub next month. This move underscores the importance of robust measurement practices in the competitive streaming market. By prioritizing measurement and offering enhanced capabilities to advertisers, Netflix is poised to maintain its momentum and attract a diverse range of advertisers to its platform.