Netflix has closed its second year of advance negotiations with advertisers, revealing a significant increase in ad sales compared to the previous year. The streaming giant reported a 150% boost in ad sales over 2023, a result that aligns with the company’s expectations. This success comes as Netflix continues to attract brands to its ad-supported offering, which has been in operation for nearly two years.
The streamer has secured deals with all major ad-holding groups, independent agencies, and brands across various categories such as automotive, CPG, tech, QSR, and retail. These partnerships are in place for upcoming film and TV releases, including highly anticipated titles like the return of „Squid Game“ and the premiere of „Happy Gilmore 2.“
One of the key highlights of Netflix’s recent push into advertising is its focus on programmatic advertising. The company now offers marketers the ability to set up private marketplace deals through platforms like The Trade Desk, Google Display & Video 360, and Xandr. Additionally, Netflix has introduced new measurement capabilities to help advertisers track the success of their campaigns.
The surge in ad sales for Netflix signifies a growing interest from brands in the streamer’s ad-supported model. The company’s content slate for the upcoming year includes second seasons of popular shows like „Squid Game“ and „Wednesday,“ as well as new offerings like a „Happy Gilmore“ sequel and the return of reality show „Love is Blind.“ Netflix is also making bigger bets on premium live programming, such as the WWE’s „Raw“ and an NFL game scheduled for Christmas.
Netflix’s entry into the TV advertising market in 2022 faced some challenges, including high ad prices that deterred some media buyers. However, the company has since adjusted its pricing strategy, lowering CPMs to make its inventory more accessible to advertisers. The competitive landscape has also influenced Netflix’s approach, with the emergence of rivals like Amazon introducing commercials to Prime Video earlier this year.
To enhance its technological capabilities and attract more ad spending, Netflix has partnered with leading ad-tech platforms like The Trade Desk, Google Display & Video 360, and Xandr. These partnerships enable marketers to broker direct deals with Netflix and run programmatic campaigns on the platform. Netflix is also expanding its measurement solutions by working with companies like Google, Nielsen, and Innovid to verify impressions and track campaign performance.
Looking ahead, Netflix is working on developing a proprietary ad-tech platform set to launch in 2025. The company is also focused on achieving „critical ad subscriber scale“ by 2025, with plans to expand its ad-supported tier and reach a broader audience. Despite leadership changes in its advertising division, Netflix remains committed to growing its advertising business and providing innovative solutions for marketers.