Netflix has officially wrapped up its second-ever TV upfront negotiations, marking a significant milestone for the streaming giant. Amy Reinhard, the company’s president of advertising, announced the news, revealing that Netflix had closed deals with all major holding companies and independent agencies. The company saw a remarkable 150%-plus increase in upfront ad sales commitments compared to the previous year, meeting their expectations.
Reinhard highlighted that Netflix had secured investments from key categories such as consumer packaged goods, technology, entertainment, auto, quick-service restaurants, and retail. The company also brokered partnerships for several upcoming films and series, including popular titles like Squid Game, Wednesday, Outer Banks, Happy Gilmore 2, Ginny & Georgia, and Love Is Blind. Additionally, Netflix secured deals for live events such as WWE Raw and the Christmas Day National Football League games.
Despite the success of the upfront negotiations, Netflix did not disclose specific details regarding total volume or changes in CPMs (cost to reach 1,000 viewers). Reports indicated that Netflix had initially sought CPMs of around $65 but was now looking for rates below $30. Reinhard emphasized the company’s commitment to enhancing the Netflix ads plan to ensure a positive experience for members while delivering results for marketers.
In addition to the upfront close, Reinhard provided an update on Netflix’s efforts to bring its adtech in-house. The company plans to test its tech platform in Canada in November and launch it globally by 2025. Marketers can now set up private one-to-one marketplace deals directly with Netflix through platforms like The Trade Desk, Google’s Display & Video 360, or Microsoft’s Xandr. Netflix is also expanding its capabilities across different buy types, including programmatic guarantee, in November.
Netflix has been actively executing programmatic campaigns with various advertisers, including Expedia, Ford, T-Mobile, Mercedes-Benz, Novartis, and American Eagle. The company’s programmatic private marketplace is currently available in the U.S., Canada, Brazil, and Mexico. Netflix is also extending its campaign performance measurement suite into various analytics platforms for all buy types in the fall.
The article also sheds light on the recent shakeup within Netflix’s ad sales team, with Peter Naylor, the former vice president of ad sales, exiting the company. Netflix is now in the process of hiring a new head of U.S. and Canada ad sales to fill Naylor’s global role. The company’s growth plan includes sunsetting its lowest-priced ad-free plan and enrolling those users into its ads plan, which has reached 40 million monthly active users globally.
Overall, Netflix’s successful upfront negotiations and ongoing efforts to enhance its adtech and ad sales strategies demonstrate the company’s commitment to delivering value to both its members and advertisers. The streaming giant continues to evolve its advertising offerings and expand its partnerships to create impactful global ad campaigns and drive results for marketers.