Netflix to launch in-house ad-tech platform

By the end of 2025, Netflix will have its own in-house ad technology platform. This platform will offer advertisers new ways to purchase ad space, measure campaign effectiveness, and gain valuable insights into viewer behavior.

The ad-supported tier has seen explosive growth, reaching 40 million users globally. In regions where it's available, over 40% of new sign-ups are choosing the ad plan, demonstrating strong consumer interest.

To ensure transparency and effectiveness, Netflix is partnering with industry leaders like DoubleVerify and Nielsen. These partnerships will provide advertisers with independent verification of ad delivery and campaign performance.

Netflix is expanding its programmatic buying partners to include The Trade Desk, Google's Display & Video 360, and Magnite, joining Microsoft. This wider range of partners gives advertisers more flexibility in how they purchase ad space on Netflix.

Crucially, Netflix boasts a highly engaged user base. Over 70% of ad-supported plan members watch more than 10 hours per month, significantly exceeding competitor view times.

Netflix emphasizes their commitment to a positive user experience. They conduct extensive research to ensure ads are presented strategically and don't disrupt viewers' enjoyment of their favorite shows and movies.

Netflix highlights the "Netflix effect," where popular shows cultivate passionate fandoms. Advertisers gain access to these engaged audiences through the ad plan and potentially through future live events.

While boasting impressive user engagement numbers, Netflix will stop reporting subscriber numbers and average revenue per user (ARM) in 2025. They believe these metrics are less indicative of long-term success and prefer focusing on revenue, profitability, and watch time as measures of business health.

In essence, Netflix is making a strong push in the ad-supported streaming market. They're building advanced technology, attracting a rapidly growing user base, and showcasing a highly engaged audience to advertisers. All while maintaining a focus on user experience and offering advertisers valuable opportunities to reach their target audience.