Netflix is celebrating two years since launching its ad-supported subscription model, showcasing notable success as it reaches 70 million monthly active users worldwide. This impressive number reflects the platform's continuous efforts to expand its member base across various regions.
One of the standout statistics is the uptake of the ad-supported plan; more than half of new sign-ups from countries with this option have chosen it. This trend highlights how appealing the lower-cost, ad-included subscription is to consumers who may have otherwise hesitated to join Netflix.
Recent programming has played a significant role in attracting viewers back to Netflix. Series and specials like Nobody Wants This, The Diplomat, and Love is Blind Habibi have generated buzz and engagement, leading to millions tuning in. Not to mention, live events like the Jake Paul vs. Mike Tyson boxing match have captured public attention, bringing additional viewership to the platform.
Netflix has also formed several new partnerships with high-profile advertisers, propelling its advertising capabilities to new levels. A notable collaboration includes the NFL's live Christmas Day games, during which Netflix sold out all available advertising slots for two live events. The deal includes prominent advertisers such as FanDuel and Verizon, ensuring viewers see traditional commercial breaks alongside sponsored content.
Partnerships extending beyond sports are also significant. For the upcoming season of the hit series Squid Game, Netflix has secured deals with various advertisers across its twelve ad-supported countries. Particularly, Kia has sponsored the show's debut with a unique multi-part advertising campaign to coincide with the launch of its new SUV, The New Sportage, marking it as Netflix's first single-title sponsorship deal within Korea.
With Netflix’s rapid growth, measuring the impact of advertisements becomes imperative. Initial data reveals favorable outcomes from ad campaigns across multiple sectors. Notably, one auto brand reported viewer engagement three times higher than on other connected TV channels after advertising on Netflix. Similarly, beauty brands have also seen gains, with one company noting improved brand recognition after its campaign aired on the platform.
To bolster its measurement solutions, Netflix formed ties with VideoAmp, set to roll out cross-screen viewing metrics starting January with WWE’s launch. This collaboration promises enhanced data analysis with VideoAmp’s Snowflake clean room, prioritizing consumer privacy. Netflix maintains its commitment to accuracy by partnering with Nielsen for live ratings, especially for the NFL Christmas games, leveraging first-party streaming data for improved reliability.
Canada marks the first territory where Netflix uses its proprietary advertising technology exclusively. This initiative grants advertisers increased control over their campaigns, as Netflix develops more advanced forecasting and targeting tools. The goal is for this technology to become available globally by 2025, with aspirations to improve analytics for advertisers.
Netflix is also venturing boldly toward programmatic advertising. Since its launch back in August, this offering has expanded to include programmatic guaranteed buying across the US, Brazil, Canada, and Mexico, with rollouts planned for Europe and Asia within the next year. This development enables Netflix to support diverse campaign objectives and collaborate with new partners who specialize in targeting and measurement.
By leveraging strategic partnerships, innovative measurement techniques, and its growing suite of advertising technologies, Netflix is positioning itself as a formidable player within the advertising industry. The company's initiatives are not only enhancing the advertising experience for brands but are also elevationally enriching the overall subscriber experience as the platform continues to innovate.
Overall, as Netflix enhances its advertising offerings worldwide, the future seems bright for its ad-supported model, promising sustained growth and continual innovation to engage both advertisers and viewers alike.
