Netflix Revs Up Ad Platform with Data and Personalization
Netflix is accelerating its advertising business with new data partnerships, advanced personalization tools, and innovative ad formats. Moving beyond its initial "crawl, walk, run" approach, Netflix is now focused on rapid expansion and delivering strong results for advertisers.
Enhanced Data and Targeting
Netflix has partnered with Experian and Acxiom to enhance its data capabilities, broadening its existing partner network. The company is also developing a clean room strategy to enable advertisers to leverage data for activation and measurement while protecting user privacy. Advertisers can now target consumers based on 100 interests across 17 categories, including life stages, and utilize "bring your own data" (BYOD) options through partners or directly with Netflix.
New Ad Formats and Personalization
Netflix is experimenting with diverse ad formats, emphasizing viewer personalization and a modular framework for brand customization. Generative AI will match ads to content, dynamically incorporating imagery from shows like "Squid Game." Interactive mid-roll and pause ads with overlays, calls to action, and QR codes are also in development.
“If you take anything away from today, I hope it’s this: The foundation of our ads business is in place, and going forward, the pace of progress is going to be even faster,” said Amy Reinhard, President of Advertising at Netflix.
Expanding Reach and Programmatic Buying
Netflix's proprietary ad tech is expanding to all 12 countries with ad-supported plans by June, including the U.K., South Korea, Germany, and France. The ad-supported tier now boasts over 94 million global monthly active users, more than double the previous year. Netflix is also expanding its programmatic buying capabilities and first-party measurement tools, including brand lift solutions.
Focus on Diverse Content and Audiences
While reaching a broad audience, Netflix highlighted a diverse range of shows and movies at its recent upfront presentation, showcasing its commitment to catering to various demographics and interests.
“We never take a one-size-fits-all approach to marketing or entertainment because every title and every audience requires something totally different,” said Netflix CMO Marian Lee.
Netflix's advertising platform continues to evolve, offering advertisers more sophisticated tools and opportunities to connect with their target audiences within a premium streaming environment.
