Netflix has announced plans to launch an in-house advertising technology platform by the end of 2025, in an announcement to advertisers during the company’s second Upfront presentation. According to the streaming giant, the new platform will offer advertisers innovative ways to purchase ads, gain insights, and measure impact.
Amy Reinhard, Netflix’s President of Advertising, said, “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.
Furthermore, across 12 countries Netflix’s ad-supported tier has 40 million monthly active users. The ad tier commenced in late 2022 and has grown from 5 million monthly active users a year ago to 23 million monthly active users as of January. Additionally, of all new Netflix sign ups in markets where it is available the ad-supported plan is contributing to over 40%.
According to Netflix, more than 70% of its ad-supported subscribers watch for over 10 hours a month, which as per Nielsen data is 15 percentage points higher than its nearest competitor. Notably, more than 50% of viewers on the ad-supported plan watch the streaming service for more than 20 hours per month.
Additionally, for its ad-tech offering the company originally partnered with Microsoft. Meanwhile, to measure and verify the impact of their campaigns Netflix has also introduced new partners that advertisers can use. These partners include Integral Ad Science, iSpotTV, Affinity Solutions, DoubleVerify, EDO Inc, Kantar, Lucid, NCSolutions, Nielsen, and TVision.
Notably, the streaming giant will further expand its buying capabilities this summer to include The Trade Desk, Google’s Display & Video 360, and Magnite. These platforms will join Microsoft as the main programmatic partners for advertisers.
Amy Reinhard, 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.”