Netflix is looking forward at launching its own advertising platform as its ad-supported tier now accommodates 40 million global monthly active users. This comes after the online streaming giant said last month that it was witnessing substantial profit and free cash flow.
Netflix has added new partners Affinity Solutions, iSpotTV, Kantar, Lucid, NCSolutions and TVision, but will no longer partner with Microsoft, which will remain a programmatic advertising partner. Amy Reinhard, President of Advertising at Netflix, said their in-house adtech division will allow the company to power its ads plan with the same level of excellence that’s made Netflix the leader in streaming technology. “We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience,” she highlighted. “We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands.”
Bela Bajaria, Chief Content Officer at Netflix, said their audiences are highly engaged, choosing to spend their time watching Netflix. “That’s important because engagement is the key to success in streaming. When people watch our shows and movies, they get more value from Netflix, they stick around longer, and they’re more likely to recommend us to their friends.” The executive pointed out that this matters to everyone as they all want to be where the audiences are too.
Analysts believe Netflix’s ad plan is sure to surpass the 50 million active viewers mark by the end of the year. Evercore ISI experts said Netflix will become a key part of brand advertisers’ marketing budgets.
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