Stay updated with the latest news on Netflix Inc by subscribing to our free newsletter.
Every morning, you’ll receive a curated email digest called myFT Daily Digest that highlights the most recent Netflix Inc news.
Netflix is committed to enhancing its advertising revenue in its recently launched ad-supported service by developing more targeted and tailor-made advertising formats. During this year’s Cannes Lions festival in France, Netflix engaged in discussions with advertising executives from around the world, unveiling new plans and innovations for their ad-supported service.
One of the potential innovations includes “episodic” campaigns, wherein a series of different but related sequential ads would be shown to consumers. This approach prevents viewers from being repeatedly shown the same ad when watching a series. The ads could be displayed during similar shows, such as light entertainment, while excluding others.
Netflix made a strong presence at the festival, organizing a party in a branded hotel and hosting an event with ex-footballer David Beckham. The company’s co-chief executive, Greg Peters, and president of worldwide advertising, Jeremi Gorman, actively engaged with advertising bosses and brands throughout the week.
Netflix aims to redefine how brands can advertise on streaming platforms by introducing sophisticated advertising methods not feasible on linear TV channels. This includes enabling brands to directly target advertising to consumers based on Netflix’s valuable customer data insights.
One advertising executive mentioned that Netflix plans to develop its own technology, potentially ending its partnership with Microsoft next year. This move would grant Netflix greater flexibility and room for innovation in its advertising approach.
Netflix’s ability to leverage customer data to create tailored marketing solutions is seen as a significant advantage. With knowledge of what users have already seen, Netflix can explore the concept of episodic ad campaigns, guaranteeing that viewers see ads in the intended order.
According to an advertising chief, Netflix currently generates more revenue per user from its advertising plans compared to its standard tier. Brands have shown enthusiasm for utilizing Netflix as a marketing platform, even though the audience size is still relatively small.
Streaming services initially feared that incorporating advertising would devalue their offerings. However, it has instead expanded their reach, prompting brands to pursue innovative marketing formats and strategic partnerships with platforms like Netflix.
Netflix’s level of targeting is expected to become increasingly interesting, providing valuable insights for brands. While it is still challenging to correlate exposure to Netflix ads with sales due to the small audience size, advertisers can gain valuable data about ad viewership.
In addition to its advertising initiatives, Netflix is also venturing into the gaming business and considering incorporating advertising into this sector. Other industry experts anticipate that Apple will follow Netflix’s lead and introduce advertising alongside its shows and products. Netflix and Microsoft have chosen not to comment on these developments.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
