Netflix is now urging major brands to market their goods alongside shows that feature sex scenes, violence and nudity after selling more ads than it could show.
A month after the company ran its ‘Basic With Ads’ tier for $6.99/ month, a number of advertising companies found that only a few of their ads were run, as per the stats shared by Netflix.
“Netflix was optimistic,” said one ad exec, who requested anonymity due to a commercial relationship with Netflix.
“But they were so brand safety conscious, they were so strict on targeting, genres like sex, it’s cutting out 60 to 70 per cent of content. Sex, violence … what it left was not many shows.”
At the same time, many companies do not want their ads running alongside raunchy or violent content because they want to avoid being associated with it.
In the month before launch, Netflix and its advertising sales and technology partner Microsoft went to major brands, asking for upfront commitments of advertising spending and discounting prices for those willing to commit more.
However, brands like alcohol giant Beam Suntory, National Australia Bank and Chemist Warehouse, are some companies whose money went down the drain.
Several advertising executives with knowledge of specific Netflix ad campaigns said some brands committed hundreds of thousands of dollars and, due to either a small audience or strict content rules, spent less than $1000 in the first month.
Shows including Peaky Blinders, Emily in Paris, and Suits are tagged as having sex scenes or violence, which fall short of “brand safety” guidelines built into advertising systems.
A Netflix spokesman said it was still very early days and the platform was learning and evolving but declined to comment on how they planned to boost ad audiences.
Netflix Basic with Ads launched in November globally in 12 countries, including Australia. The cheaper access to shows and films also meant four minutes of ads an hour, ranging from 15 to 30 seconds long, which play before and during the programs.
