Netflix Is Bringing Its Own Advertising Technology

Similar to WBD, Netflix used its pre-presentation to dispel doubts about its viability as an advertising channel.

Advertisers have been frustrated by Netflix’s slow growth since it began advertising in late 2022. Advertisers also complained last year that targeting and measurement was too limited.

But Netflix is determined to prove that it does indeed have the ad buying and measurement options that buyers are looking for.

Netflix pre-announced Wednesday that its ad-supported plans now have 40 million monthly active users worldwide, up from 23 million in January. Given this level of growth, Netflix also shared plans to launch its own ad tech platform, as well as new partnerships with additional programmatic platforms and measurement providers.

Going all-in on advertising

This isn’t the first time Netflix has hinted at running its own advertising technology.

But unlike in the past, when details were sparse, Amy Reinhardt, the company’s president of advertising, was clear. “Netflix will launch its own advertising technology platform by next year.”

The company aims to begin testing in Canada this year and launch the platform in the United States by the second quarter of 2025. The platform is expected to be available worldwide by the end of next year.

Mr. Reinhard told buyers that the goal is for Netflix to have as much control over advertising technology as it does streaming technology, which in turn gives the agency more control and transparency over what it buys. He said the goal is to make it possible.

The expansion of programmatic services could signal Netflix’s intention to reduce its dependence on Microsoft as it works to build its own ad tech platform.

And in the ad measurement space, Netflix announced new partnerships with iSpot and TVision, similar to the partnerships announced last month with Kantar, Cint, and NCSolutions. Netflix also partners with Nielsen, EDO, DoubleVerify, and Integral Ad Science.

Great Success in Sports Programming

To further explain Netflix’s growth, Netflix presented some statistics showing subscriber engagement and attention to advertising.

According to the company, more than half of its ad-supported members watch more than 20 hours of her programming a month. Over 70% watch at least 10 hours a month. Programmers are looking for ways to increase viewing time and advertising revenue.

Like many other broadcasters, Netflix wants to use live events and sports broadcasts as a way to extend its airtime. But live streaming is still new territory for Netflix.

Netflix currently has a deal to stream NFL games on Christmas Day for three years. This expansion of live programming follows the announcement in January that Netflix will be the home of WWE Raw starting in 2025.

But ultimately, negotiations with advertisers starting this week will determine whether Netflix has what it takes to outdo its broadcast rivals.

Meanwhile, the streamer also announced that The Trade Desk, Google’s DV360 and Magnite will join Microsoft as major programming partners on Netflix.

Starting this summer, Netflix will make its service available through Magnite. Buyers can access it through The Trade Desk or DV360. (Currently, Netflix only uses Microsoft to sell ads programmatically through private marketplace products.)