Netflix Expands Ad Opportunities

Netflix has achieved significant milestones in its ad sales and partnerships, including a 150%+ increase in upfront ad sales, securing major content partnerships, and expanding its programmatic and measurement capabilities. Notably, Netflix's inventory is now available for purchase through Display & Video 360 (DV360), opening new avenues for advertisers. This newsletter highlights these achievements and explores the implications for advertisers, including the benefits of consolidated video buying, increased supply liquidity, and enhanced brand positioning.

Netflix's Ad Sales and Partnerships Highlights

150%+ Increase in Upfront Ad Sales:

• Closed deals with all major holding companies and independent agencies.
• Significant growth in upfront commitments across key categories: CPG, Tech & Entertainment, Auto, QSR, and Retail

Key Partnerships for Upcoming Content:

• Secured deals for major titles: Squid Game, Wednesday, Outer Banks, Happy Gilmore 2, Ginny & Georgia, and Love is Blind.
• Partnerships for live events: WWE Raw, Christmas Day NFL games

Season 3 of Bridgerton Sponsorships:

• Multiple international on-screen title sponsors: Pure Leaf, Amazon Audible, Puig,Stella Artois, Hilton. Bridgerton ranks as the sixth most popular English-language TV series on Netflix.

Return of Emily in Paris Partnerships:

• New partnerships with LVMH, COTY Gucci, Kaiku Caffee Latte, Aeromexico, Google, and Rakuten.
• Introduction of new buying options, insights, and impact measurement tools.

In-House Ad Tech Platform Launch:

• Testing begins in Canada in November 2024, with a global rollout scheduled for 2025.

Expanded Buying Capabilities:

• Private 1:1 marketplace deals available via The Trade Desk, Google’s Display & Video 360, and Xandr.
• Programmatic guarantees to be introduced by November.
• Integration of Google’s Campaign Manager 360 and Innovid for impression verification.
• Extended fraud and viewability verification partnerships with DoubleVerify and Integral Ad Science.

Programmatic Campaign Execution:

• Recent campaigns with major advertisers: Expedia, Ford, T-Mobile, Mercedes-Benz, Novartis, American Eagle.
• Programmatic private marketplace buys available in the US, Canada, Brazil, and Mexico, with global expansion planned.

New Measurement Partnerships:

• September 2024: Netflix ad-supported plan integrated into Barb's Advance Campaign Hub (ACH) for UK advertisers.
• Fall 2024: Campaign performance measurement extended to NielsenOne, Lucid (or Cint), EDO Inc., NCSolutions, Kantar, and Affinity Solutions.
• Partnerships with Snowflake, InfoSum, and LiveRamp for secure, privacy-safe data environments.
• Snowflake Data Clean Rooms currently available; InfoSum and LiveRamp launching soon

Netflix Inventory Now Available on DV360:

• Netflix inventory is now purchasable across the US market through Display & Video 360 (DV360) via private marketplace deals.
• Programmatic guaranteed opportunities to be introduced in November 2024.
• Impression measurement now available in Campaign Manager 360 for Netflix ad activity.
• DV360 joins Microsoft’s Xandr as key programmatic partners for Netflix, expanding access to its inventory.
• The addition comes amidst a broader industry trend where streaming providers, like Netflix, offer ad-supported tiers, increasing ad supply opportunities for advertisers.
• The growth of subscription video-on-demand (SVOD) is expected to see a 6.7% CAGR from 2023-2028, driven by consumer adoption of streaming devices and smart TVs

Takeaway

Netflix continues to solidify its position as a powerful advertising platform, achieving significant growth in upfront ad sales, securing high-profile content partnerships, and expanding its programmatic and measurement capabilities. The availability of Netflix's inventory on DV360 presents new opportunities for advertisers, allowing for consolidated video buying, increased quality supply liquidity, and enhanced brand positioning. These milestones highlight Netflix's commitment to delivering innovative advertising solutions that meet the evolving needs of marketers while enhancing the viewing experience for its highly engaged audience. Advertisers should consider incorporating Netflix into their unified buying strategies across video inventory, especially as these opportunities expand globally.

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