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Netflix to Launch In-House Advertising Technology Platform by 2025

Netflix (Image: Sourced from Netflix Pressroom)

Amy Reinhard, Netflix’s President of Advertising, has confirmed that Netflix will launch an in-house advertising technology platform by the end of 2025.

Netflix says that the new platform will give advertisers “new ways to buy, new insights to leverage, and new ways to measure impact.”

“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,” she said.

The updates were made at Netflix’s second Upfront presentation to advertisers.

At the evening, Netflix noted that its ad-supported plan now has 40 million global monthly active users — up from just 5 million a year ago.

Over 40 per cent of all signups in the ads countries now come from the ads plan. Overall, the company has 270 million subscribers.

Netflix launched its ad-supported plan in 12 markets in November 2022. In Australia, its ad-supported plan is its cheapest and costs A$7.99, compared to the similar plan without ads that costs A$18.99 a month, while the top-tier Premium Plan which is also without ads and offers 4K + HDR content is available for A$25.99 per month in Australia.

Netflix added that it featured new partners that advertisers can use to measure and verify the impact of their campaigns, including Affinity Solutions, DoubleVerify, EDO Inc, Integral Ad Science, iSpotTV, Kantar, Lucid, NCSolutions, Nielsen and TVision.

This summer, Netflix will also expand its buying capabilities to include The Trade Desk, Google’s Display & Video 360, and Magnite who will join Microsoft as the main programmatic partners for advertisers.

Bela Bajaria, Netflix’s Chief Content Officer, added, “Our audiences are highly engaged — and by engaged I mean that they are choosing to spend their time watching Netflix. That’s important because engagement is the key to success in streaming.”

According to Nielsen, over the last three years, Netflix had more top 10 titles than every other streaming service combined.

Over 70 per cent of Netflix’s ad-supported members watch for more than 10 hours a month – 15 percentage points higher than the nearest competitor, according to Nielsen.

Netflix says that its members also pay even more attention three hours into watching than they do when they first start. And because they do, they’re around twice as likely to respond to an ad compared to other streaming services and linear TV.

Earlier this year, Netflix announced it would stop announcing subscriber numbers from 2025 despite it reporting that it added 9.33 million customers in the first quarter of this year – a 16 per cent increase over the past 12 months. Also, its operating income climbed 54 per cent with revenue rising to US$2.6bn, up from US$1.7bn a year ago.

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