Netflix has revealed plans to launch an in-house advertising technology platform by the end of 2025, with the aim of providing advertisers with actionable insights and new ways to buy while measuring impact.
This follows Netflix's continued growth and momentum from its ad-supported plan, which now has 40 million monthly active users worldwide, up from 5 million a year ago. In fact, according to a statement from Netflix, more than 40% of all sign-ups in advertising countries currently come from advertising plans.
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Netflix has also partnered with Affinity Solutions, DoubleVerify, EDO Inc, Integral Ad Science, iSpotTV, Kantar, Lucid, NCSolutions, Nielsen and TVision to provide advertisers with the means to measure and verify the effectiveness of their campaigns.
As part of its advertising growth plan, the company will expand its buying capabilities to include The Trade Desk, Google's Display & Video 360, and Magnite, which will join Microsoft as a key programmatic partner for advertisers this summer.
“Bringing ad technology in-house will allow us to power our advertising plans with the same level of excellence that has made Netflix the leader in streaming technology today,” said Amy Reinhardt, president of advertising at Netflix. Stated.
“We want our members to have a great experience, so we're very strategic about how we display our ads. We conduct in-depth consumer research to ensure we stay ahead of our competitors. , creating better opportunities for our members and for our brands,” she explained.
Netflix's advertising plans and live events give advertisers more opportunities to thoughtfully engage with fans of culture-influencing shows and movies, known as the “Netflix effect,” according to Marian Lee, Netflix's chief marketing officer. It is said that it will happen.
“It starts with a great story that will be a can't-miss moment for millions of fans,” Lee said. “But then it spread across Netflix, the trailer was watched billions of times, it spread across social media channels, it has a billion very active followers.”
Netflix aims to help advertisers reach more fans on and off screen, in the moments that matter most.
More than 70% of Netflix's ad-supported members watch more than 10 hours per month, which is 15 points higher than its closest competitor, indicating that Netflix has high viewer engagement.
In fact, Netflix has amassed 32.9 billion hours of total viewing time, surpassing second place Disney+'s 5.3 billion hours.
“Our viewers are very engaged, and by engaged we mean they are choosing to spend their time watching Netflix. Because engagement is the key to streaming success, This is important,” said Bela Bajaria, Netflix's chief content officer.
“When people watch our shows and movies, they get more value from Netflix, stay longer, and are more likely to recommend us to their friends. And this is important to all of you.” Yes, because you also want to be where the audience is,” Bajaria added.
Despite the increase in numbers presented, the streaming giant has announced that it will stop reporting quarterly membership numbers and average revenue per member (ARM) in 2025.
In a letter to shareholders, the company said subscriber numbers are no longer a strong indicator of its future prospects as it “generates very strong profits and free cash flow (FCF).”
Instead, Netflix wants investors to judge the company on metrics such as revenue, operating margins, free cash flow and time spent on the platform.
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