Netflix aims to strengthen its advertising business and has announced that it will launch its own ad tech platform by the end of 2025. This platform will provide advertisers with new ways to offer their services and measure the impact of their campaigns.
The technology company has organized this Wednesday the second presentation of its Upfront event for advertisers. It suggests that advertisers who choose Netflix to offer their services can "reach the most engaged audience in the world," which currently reaches 270 million subscribers.
Netflix has a plan that displays advertising, which it implemented in 2022. In Spain, it is available for €5.49 per month and, in addition to embedding advertising during playback, it suppresses some of the most watched titles in its catalog. However, it plays them in Full HD quality and supports two devices.
This standard subscription model with ads now registers 40 million monthly active users worldwide, compared to five million a year ago, as explained by Amy Reinhard, president of Netflix Advertising, stressing that more than 40% of users in countries where the plan with advertising is present are subscribed precisely to this mode, which introduces ads both at the beginning and during the playback of series and movies.
With all this, Netflix has announced the launch of the aforementioned internal advertising technology platform, which will arrive by the end of 2025 and will give advertisers "new ways to buy, new knowledge, and ways to measure the impact" of their campaigns. In this way, Netflix will be able to create targeted and personalized ad experiences, as TechCrunch is nuanced.
"Bringing our ad technology in-house will allow us to drive the ad plan with the same level of excellence that has made Netflix the leader in streaming technology today," the executive said.
Reinhard also emphasized that this development comes after "in-depth consumer research and is designed to make Netflix even better for customers." "We are being incredibly strategic about how we present ads because we want our members to have a phenomenal experience," Reinhard emphasized.
Similarly, he has announced that this summer, Netflix will expand its buying capabilities to include The Trade Desk, Google's Display & Video 360 and Magnite, which will join Microsoft as the leading programmatic partners for advertisers.
