Netflix had its second upfront presentation overnight in the US, where the streaming giant announced plans to launch its own in-house advertising technology platform.
Amy Reinhard, Netflix’s president of advertising, revealed that its ad-supported tier now boasts over 40 million global monthly active users, up from just 5 million a year ago.
Over 40% of all new signups in the markets with an ad-supported plan, now opt for this tier. Netflix has 270 million subscribers, worldwide, which means just under 15% are using the ad-supported tier.
With 35 million new ad-supported viewers signing on within the past year, Netflix will launch its own in-house advertising technology platform, in order to “give advertisers new ways to buy, new insights to leverage, and new ways to measure impact,” as Reinhard explained.
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“Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” she said.
“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience.
“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.”
Peter Naylor, vice president of advertising sale said “the story of ads on Netflix this year is pretty simple: It’s about growth and momentum. We’ve come a long way in a short time. Now we’re working to improve the experience.”
A spokesperson from Netflix Australia told Mumbrella that testing will begin in Canada at the end of this year, with roll out following.
All twelve ad-supported countries will be migrated to the in-house advertising technology platform by the end of 2025.
The spokesperson also said that Microsoft will “still remain a programmatic partner for Netflix globally.”
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