Finding the right platform to advertise your brand effectively can feel like a never-ending challenge, especially as traditional platforms become more expensive and less impactful. If you are also having a hard time reaching the right audience without overspending, you are not alone. But here’s some good news: Netflix can help.
In November 2022, Netflix introduced its ad-supported subscription tier, Netflix Basic with Ads, offering advertisers a fresh way to reach millions of binge-watchers. Imagine your brand being featured alongside hit shows like Stranger Things or Bridgerton!
This new ad option allows businesses to target a vast, highly engaged audience on one of the world’s most popular streaming platforms. By early 2024, Netflix has over 13 million US subscribers, giving advertisers a chance to reach a large and diverse audience.
Whether you’re looking to expand your reach or get more out of your ad budget, Netflix ads provide a unique, cost-effective solution. Curious about how to advertise on Netflix? Let’s break down everything you need to know about this exciting new opportunity.
Key takeaways:
If you do not have time to read the entire guide and want to learn more about advertising on Netflix, here are some key takeaways:
- Why Advertise on Netflix? Learn about the vast audience reach and engagement Netflix offers to advertisers.
- Why Did Netflix Start Offering Ads? Understand the shift from an ad-free model to an ad-supported tier in response to market demands and subscriber trends.
- How to Advertise on Netflix Basic with Ads: Familiarize yourself with the process and requirements for advertising on Netflix’s ad-supported tier.
- Why You Should Consider Advertising Your Business on Netflix: Discover the potential for increased brand visibility and customer reach on this popular platform.
- Netflix Ad-Tier Options: What You Need to Know: Get the details on different subscription tiers and their implications for advertisers.
- Why Netflix’s Ad-Tier Matters for Advertisers: Recognize the significance of this change in the advertising landscape and its benefits for marketers.
- Benefits of Advertising on Netflix: Explore the advantages, including targeted advertising and a massive audience base.
This guide on How to Advertise on Netflix has a lot to offer, providing valuable insights and practical steps to help you get started. We encourage you to read through the full guide for a comprehensive understanding and to unlock the full potential of your advertising strategy on Netflix!
Why Advertise on Netflix?
Netflix’s ad-supported tier is a significant development for advertisers, providing access to a vast audience across diverse demographics. For brands aiming to broaden their marketing reach, Netflix offers a unique platform for video advertising that delivers premium content directly to households.
With the launch of Netflix Basic with Ads, advertisers can now connect with millions of viewers who dedicate hours each day to watching their favorite shows and movies. This new strategy not only helps Netflix address rising competition but also meets internal growth goals.
Industry experts, including Netflix executive Greg Peters and Ross Benes from Insider Intelligence, highlight that this approach responds to the evolving market landscape. It aligns with consumer trends leaning towards more personalized and affordable viewing options, making it an ideal time for brands to leverage this channel.
Why Did Netflix Start Offering Ads?
When did Netflix get ads? In November 2022, Netflix made a bold move by introducing an ad-supported tier, shifting from its long-standing ad-free model. So, why the change?
- The Problem: Many consumers were becoming more budget-conscious, hesitant to pay for premium streaming services amidst rising costs. Netflix, known for its top-tier content, needed to find a way to keep attracting price-sensitive viewers without losing its loyal customer base.
- The Solution: By offering an ad-supported plan, Netflix provided a cost-effective option for viewers who want access to their favorite shows and movies without paying for the ad-free experience. This gave users more flexibility, while advertisers gained a unique opportunity to reach millions of engaged viewers. Netflix’s massive user base—278 million paid subscribers globally—opens doors for businesses to advertise in front of a diverse audience.
Today, over 40% of new Netflix sign-ups in ad-supported regions are opting for the ad tier, resulting in more than 40 million ad-supported users. This growing platform is quickly becoming a goldmine for marketers looking to make an impact.
Amy Reinhard, President of Advertising at Netflix, highlights their vision:
“Our goal isn’t just to offer the same products and tools the industry has come to expect… It’s to build something bigger and better than what exists today. We want to shape the future of advertising on Netflix and help marketers tap into the amazing fandom generated by our must-watch shows and movies.”
For marketers, this is a game-changer. The new ad-supported tier offers direct access to millions of active viewers, enabling businesses to deliver targeted ads during some of the most popular series and films globally.
How to Advertise on Netflix Basic with Ads
Netflix, an OTT (over-the-top) platform, has long been a leader in streaming entertainment. With the launch of its ad-supported tier, Netflix offers an incredible opportunity for advertisers to connect with millions of daily viewers.
Netflix Ad Manager, Explained
The Netflix Ad Manager is a comprehensive platform designed to empower advertisers in managing their campaigns on Netflix’s ad-supported tiers. This robust toolset allows for effective optimization of ad placements and targeted audience engagement.
Features of the Netflix Ad Manager:
- Targeting Options: Advertisers can achieve precise audience segmentation based on demographics, interests, and viewing behavior, ensuring that ads reach the right viewers at the right time.
- Budget Control: The platform facilitates the setting and management of advertising budgets, allowing for cost-effective campaigns that align with overall marketing objectives.
- Real-Time Analytics: Advertisers have access to real-time performance data, enabling immediate adjustments to optimize campaigns and improve overall effectiveness.
- Creative Flexibility: The Netflix Ad Manager supports various ad formats, allowing for diverse and engaging creative executions that resonate with audiences.
- Geographic Targeting: Advertisers can target specific geographic locations, ensuring that their ads reach the intended markets and enhancing campaign relevance.
If you’re new to advertising on Netflix, this guide will walk you through the essential details, from ad formats to targeting options, to help you successfully plan your campaign.
Ready to take your brand to the next level?
Step-by-Step: How to Set Up Netflix Ads on Microsoft Advertising
Step 1: Create a New Campaign
- Go to the “Campaigns” grid on Microsoft Advertising.
- Click on “Create” to start a new Netflix ad campaign.
Step 2: Choose Your Campaign Goal
- Select “Build Brand Awareness” as your campaign objective.
- Choose the “Connected TV” option to target ads on streaming platforms like Netflix.
Step 3: Name Your Campaign and Set a Budget
- Give your campaign a unique name.
- Set your daily budget for the campaign.
- The bid strategy will be set to Cost Per Completed View (CPCV), meaning you only pay when viewers watch your Netflix ad in full.
Step 4: Set Up Your Ad Group
- Create a name for your ad group.
- Set your CPCV bid (recommended between 1 and 10 cents).
- You can also apply a frequency limit to control how many times each viewer sees your ad (per hour, day, or week).
Step 5: Apply Targeting Options
- Add relevant targeting options, such as audience demographics, interests, or viewing habits.
- As you add targeting, you can see the potential monthly impressions your Netflix ad will generate.
- Use genre targeting to focus your ads on specific types of content that Netflix viewers are watching.
Step 6: Upload Your Video Ads
- Upload your video ads and enter your final URL.
- For guidance, check the video ad specifications to ensure your assets meet Netflix ad requirements.
- To create multiple ads, click “Create Another Ad.”
Step 7: Launch Your Campaign
- Once you’ve completed uploading your videos and setting targeting, click “Save” to launch your Netflix ad campaign on Microsoft.
Why You Should Consider Advertising Your Business on Netflix
As of 2024, Netflix has established itself as a dominant force in the streaming world, boasting approximately 220 million paid subscribers. With the introduction of its ad-supported tier, the platform is expected to grow even further, potentially reaching up to 500 million subscribers in the coming years.
If you’re a business owner or marketer, this presents an unparalleled opportunity to reach an expansive, highly engaged audience.
How to Advertise on Netflix: A Step-by-Step Guide
Advertising on Netflix offers brands a unique opportunity to reach a massive and engaged audience through its ad-supported subscription tier. The platform, powered by Microsoft, enables advertisers to create targeted campaigns that align with viewer interests and behaviors.
Here’s a detailed, step-by-step guide on how to get started, whether you are a beginner or an advanced advertiser.
Step 1: Log In to Your Netflix Ad Manager Account
Start by accessing the Netflix Ad Manager platform. If you already have an account, log in using your credentials. For those who need to create an account, follow the on-screen instructions, linking your Microsoft information to set up your profile.
Once logged in, take some time to explore the dashboard to familiarize yourself with its layout and available tools.
- Access the Platform: Log in with your credentials.
- Creating an Account: Follow sign-up prompts if you don’t have an account.
- Familiarize Yourself with the Dashboard: Explore sections like campaign management and analytics.
If you’re looking to scale your business beyond streaming platforms, explore our guide on how to scale your high-end business with Google Search Ads for detailed insights.
Step 2: Set Up Your Campaign Details and Budget
Next, define the specifics of your advertising campaign. Clearly outline your campaign objectives, such as increasing brand awareness or driving sales. Select the type of ads you want to run and set a budget that aligns with your marketing goals. Determine the campaign duration, frequency, and overall spending.
For beginners, starting with a modest budget can help you test ads without significant risk. Advanced users should leverage historical data to inform their budgeting decisions for optimal results.
- Define Campaign Objectives: Identify goals like brand awareness or lead generation.
- Select Ad Types: Choose from available ad formats (video ads, etc.).
- Budgeting: Set total spend, daily limits, and campaign duration.
Step 3: Choose Your Target Audience
Utilizing Netflix’s targeting options is crucial for reaching the right viewers. Specify the demographics, interests, and behaviors of your ideal audience. This step ensures that your ads are seen by those most likely to engage with your content.
Beginners should focus on basic demographic targeting, while advanced advertisers can utilize custom audience segments based on first-party data for enhanced precision.
- Targeting Options: Utilize audience targeting features.
- Demographics: Specify age, gender, and location.
- Interests: Select audience segments based on viewing behavior.
- Custom Targeting: Create custom audiences for advanced targeting.
Learn more about reaching premium audiences through social media by reading our article on how to scale your high-end business with Facebook Ads.
Step 4: Upload Your Video
Once you’ve defined your campaign details, prepare your ad creative for upload. Ensure your video meets Netflix’s technical specifications, such as format, aspect ratio, and resolution.
Follow the prompts to upload your ad and provide additional details like descriptions or call-to-action links. Always conduct a quality check before finalizing to ensure your ad is polished and engaging.
- Prepare Your Ad Creative: Ensure technical specifications are met.
- Uploading Process: Follow prompts to upload and provide ad details.
- Quality Check: Review your video for errors or omissions.
Step 5: Measure Your Performance
Finally, take advantage of Netflix Ad Manager’s analytics tools to measure the performance of your ads in real time. Monitor key metrics such as impressions, click-through rates, and engagement rates to assess the effectiveness of your campaign.
Beginners should regularly check these metrics to understand ad performance, while advanced users can implement A/B testing to refine their strategies based on insights gathered.
- Real-Time Analytics: Track performance metrics.
- Key Metrics: Monitor impressions, CTR, and engagement rates.
- Adjust Your Strategy: Use insights to optimize your campaign.
By following these steps, you can explore the Netflix advertising industry effectively and make the most of this powerful platform, whether you’re just starting or looking to enhance your advertising strategies.
- The Evolution of Netflix’s Business Model
From its humble beginnings mailing DVDs to homes, Netflix has transformed into a global leader in streaming. With the launch of its ad-supported tier, the platform is now also a hub for advertisers to connect with audiences.
Although some users remain split on the idea of Netflix ads, advertisers are well-positioned to take advantage of this established platform.
Ready to elevate your business with Netflix advertising? Contact Ellington Technologies, the top digital marketing agency, to explore your options today!
Netflix ads offer a visually engaging opportunity to create high-impact video content. Here’s a breakdown of the ad structure, format, and the essential specs you need to know:
1. Netflix Ad Format
Netflix ads are strictly video-based, allowing advertisers to utilize dynamic storytelling through stunning visuals and rich audio. Currently, Netflix allows ads that run between 15 and 30 seconds long. These ads are strategically placed before (pre-roll) and during (mid-roll) the content, ensuring that your message reaches viewers when they are most engaged.
- Ad Length: 15-30 seconds
- Placement: Pre-roll (before the content starts) and mid-roll (during the content)
2. Ad Length and Frequency
Netflix maintains a strict cap on the number of ads that users see, enhancing the quality of the viewer experience. This cap is crucial for avoiding viewer fatigue, which can be a challenge for advertisers on other platforms.
- Ad Time per Hour: Netflix limits ads to approximately four to five minutes per hour of streaming. This is significantly lower than traditional TV advertising, providing brands with valuable, uncluttered space for their messages.
- Frequency Cap: Ads will not repeat excessively. Netflix ensures that a viewer won’t be bombarded by the same ad multiple times in one session. This approach enhances the user experience and encourages advertisers to create compelling ads that leave a lasting impression in just one or two viewings.
Why This Matters: With limited ad time and a frequency cap, it’s essential to create concise, engaging, and memorable ads. Aim to capture attention within the first few seconds and focus on clear, impactful messaging.
3. Ad Targeting Options
Effectively targeting your ads is key to ensuring they reach the right audience. While Netflix’s ad platform is still evolving, here are some targeting parameters expected to be available:
- Genre: Target viewers based on the types of shows or movies they watch, such as comedy, drama, or documentaries.
- Country: Advertise to specific regions or countries to tailor your messaging.
- Age Group: Reach viewers based on their age range, ensuring your ad resonates with the right demographic.
- Gender: Tailor your message based on gender preferences and viewing behavior.
- Content Rating: Adjust your ads based on the maturity level of the content viewers are consuming. For instance, consider running family-friendly ads during children’s programming.
- Time of Day: Optimize when your ads are shown based on when viewers are most active.
Example Targeting Strategy: If you’re a tech company launching a new product, you could target viewers who frequently watch science fiction or tech-related shows, in specific age groups like 25-45, during peak evening hours.
4. Ad Placement: Targeting Netflix’s Top 10
One unique feature of Netflix is its Top 10 ranking system, which displays the top 10 trending TV shows and movies in each country daily. Although this feature isn’t yet available for ad targeting, it is expected soon, offering advertisers an amazing opportunity for high visibility.
- Top 10 Targeting: Advertisers will eventually be able to align their ads with the most popular content on Netflix, placing their brand in front of large, engaged audiences. Imagine your ad playing just before a binge-watching session of the latest hit series.
Why This Matters: Ads running against trending content have a higher chance of being seen by a larger audience, offering more exposure. The Top 10 targeting will allow you to associate your brand with the hottest shows on the platform, increasing your ad’s effectiveness.
5. Creative Best Practices for Netflix Ads
With only 15-30 seconds to make an impact, creating an attention-grabbing ad is essential. Here are some best practices for making your ad stand out:
- Hook Viewers Early: Ensure the first few seconds grab the viewer’s attention. Utilize compelling visuals, catchy sound bites, or intriguing questions to draw viewers in immediately.
- Keep It Simple: With a limited time frame, keep your message focused and clear. Avoid overwhelming the audience with too much information.
- Strong Call-to-Action (CTA): Conclude your ad with a clear call to action, directing viewers to learn more, visit your website, or engage with your brand in a specific way.
Advertising on Netflix offers a unique opportunity to reach an engaged and diverse audience. With carefully curated content, limited ad space, and evolving targeting capabilities, Netflix is poised to become a powerful platform for digital marketers.
What is Netflix’s ad-supported plan?
Netflix has introduced an ad-supported plan to offer a more affordable streaming option, although pricing for additional tiers has yet to be fully announced. This ad-supported plan will come at a lower cost compared to Netflix’s current ad-free subscriptions, which will remain available.
Here’s a breakdown of Netflix’s current streaming plans:
- Basic with Ads ($6.99 per month): This plan includes unlimited access to movies, TV shows, and mobile games. Ads ranging from 15 to 30 seconds appear before and during content. It allows for viewing on one screen at a time and offers one device for downloads and offline viewing.
- Basic ($9.99 per month): This ad-free plan also offers unlimited movies, TV shows, and mobile games, with the ability to watch on different devices. It supports one screen for viewing at a time and includes one device for downloads and offline access.
- Standard ($15.49 per month): In addition to unlimited content, this ad-free plan allows two screens for simultaneous viewing and two devices for downloads.
- Premium ($19.99 per month): This top-tier plan provides unlimited content with the ability to watch on four screens simultaneously and download on four devices.
As Netflix continues to roll out its ad-supported tiers, pricing may evolve depending on viewership and ad-generated revenue.
Netflix Ad-Tier Options: What You Need to Know
As Netflix continues to expand its offerings, they’ve begun cracking down on password sharing, aiming to ensure that only users in the same household are accessing each account. To help accommodate users seeking more affordable options, Netflix has introduced various tiered subscription plans.
| Plan | Basic with Ads | Basic (No Ads) | Standard | Premium |
| Monthly Price | $7 | $10 | $15.50 | $20 |
| Screens Simultaneously | 1 | 1 | 2 | 4 |
| Devices for Downloads | 0 | 1 | 2 | 4 |
| HD Available | Yes | Yes | Yes | Yes |
| Ultra HD Available | NO | No | No | Yes |
Why Netflix’s Ad-Tier Matters for Advertisers
While Netflix’s move into ad-supported content is still relatively new, the potential for advertisers is huge. With millions of viewers shifting to the Basic with Ads plan, advertisers can leverage the platform to reach engaged audiences who are accustomed to consuming premium content.
- Affordable Access: The introduction of the Basic with Ads plan allows cost-conscious users to continue accessing Netflix, meaning a wider demographic for advertisers to reach.
- Unique Targeting Opportunities: With fewer ads shown compared to traditional TV, your ad is less likely to get lost in the noise. As Netflix rolls out advanced targeting options, including by genre, region, and even top trending content, you’ll be able to tailor your campaigns to your ideal audience.
- Prime Placement: Ads will appear before and during content, ensuring high visibility without overwhelming the viewer. This non-intrusive approach is especially effective for maintaining brand awareness.
Netflix’s Ad Tier: Context and Importance
Netflix’s introduction of an ad-supported tier comes in response to a significant decline in subscribers, with over 1 million lost in the US and Canada earlier this year. This change reflects the company’s efforts to adapt after experiencing a drop in stock prices and growing investor concerns over its slowed growth trajectory.
Co-CEO Reed Hastings had long opposed incorporating advertising, but recent subscriber losses prompted a shift in strategy. This adjustment aims to cater to cost-conscious consumers while maintaining a premium ad-free option.
It’s essential for potential advertisers to note that Netflix’s ad tier will feature an average of four to five minutes of ads per hour, not four to five ads, as previously misstated. Additionally, pricing adjustments may occur for advertisers as Netflix refines its offerings.
Understanding these dynamics is crucial for marketers looking to leverage Netflix’s extensive subscriber base effectively.
Benefits of Advertising on Netflix
For advertisers, this new ad tier presents a valuable opportunity to engage with a diverse and expansive audience. Here are some key benefits of advertising on Netflix:
- Wide Reach: Netflix currently has millions of subscribers through its ad-supported tier. This impressive growth represents an unparalleled opportunity for advertisers to tap into a massive and diverse customer base. Given the sheer volume of viewers, brands can significantly increase their visibility and expand their market presence.
This is especially valuable for advertisers looking to launch national campaigns or target specific demographics, including the increasingly important Gen Z audience, which is actively seeking more affordable streaming options.
With nearly 7 in 10 (67.9%) Gen Zers already watching Netflix, advertisers can effectively reach a demographic that is known for its digital engagement and brand loyalty.
- Targeted Advertising: Advertisers can benefit from Netflix’s robust targeting options, allowing them to reach specific demographics, including age, gender, content preferences, and even time of day. This level of precision enhances the effectiveness of ad campaigns.
- High Engagement Rates: Netflix users are highly engaged, often consuming content for extended periods. This means ads are more likely to be viewed in a relaxed, attentive environment, increasing the potential for brand recall.
- Innovative Ad Formats: The platform supports creative, show-stopping video ads that can effectively capture viewers’ attention, allowing brands to differentiate themselves in a competitive landscape.
- Cultural Relevance: By placing ads on a platform known for its popular shows and movies, advertisers can align their brands with trending content, increasing their visibility and relevance among audiences.
- Cost-Effectiveness: The ad-supported tier provides a more affordable advertising solution for businesses looking to maximize their return on investment (ROI) without the high costs typically associated with traditional advertising channels.
As Netflix adapts to meet consumer needs, now is the perfect time for businesses to explore advertising on the platform and tap into this expansive market. By using the benefits of the ad tier, brands can effectively connect with viewers and foster brand loyalty.
FAQS
What is Netflix with ads?
Netflix with ads is a new subscription option where users can watch Netflix shows and movies with periodic commercial breaks. This ad-supported tier costs less than the traditional ad-free options, offering subscribers more choices.
How many ads are on Netflix?
Viewers can expect an average of four to five minutes of ads per hour when using the ad-supported tier. This setup allows advertisers to deliver their messages effectively without overwhelming the viewing experience.
How bad are the ads on Netflix?
While opinions may vary, many viewers have expressed concerns about the ads on Netflix. However, Netflix aims to balance the advertising experience by limiting the frequency and duration of ads, making it less intrusive than traditional commercial breaks on TV.
How much does it cost to advertise on Netflix?
The cost to advertise on Netflix varies based on several factors, including the length of the ad and the targeted audience. Generally, it requires a minimum budget, which may not be publicly disclosed, so it’s best to contact Netflix directly for precise pricing details.
What are Netflix commercials?
Netflix commercials refer to the ads that play during shows and movies in the ad-supported subscription tier. These ads are designed to be engaging and relevant to the viewer’s interests, enhancing the advertising experience.
How Many Ads Does Netflix Have?
Netflix takes a viewer-friendly approach, capping the number of ads shown. With only a few minutes of ads per hour, this helps your brand stand out. Plus, the ad space is more competitive, meaning you’re not lost in a sea of other advertisers.
What should advertisers consider when budgeting for Netflix ads?
The cost of advertising on Netflix can vary significantly based on several key factors:
Ad Format: Different ad formats have varying costs due to their complexity and potential viewer engagement levels.
Target Audience: More specific and niche target audiences often lead to higher costs because of increased demand for precision in ad targeting.
Seasonality: Advertising costs may fluctuate during peak viewing times, such as holidays, when demand is higher.
Campaign Length and Frequency: Longer and more frequent advertising campaigns generally incur higher costs but can offer better reach and impact.
Geographical Targeting: Ads that target specific regions or cities may cost more due to the focused reach and potential market size.
Understanding these factors will help advertisers effectively budget for their campaigns on Netflix.
What Do Netflix Ads Look Like?
Netflix ads are video-based, running for about 15-30 seconds. These ads appear either before or during a viewer’s content, ensuring maximum exposure while minimizing interruption. Importantly, Netflix limits ad time to four to five minutes per hour—far less than traditional TV.
Bottom Line
We hope this guide clarifies how to advertise on Netflix and why it matters for your business. With its vast audience and engaging content, Netflix offers a unique platform for advertisers. Understanding the ad options and strategies available can help you effectively reach potential customers.
If you have any questions or need assistance with your advertising plans, feel free to contact us at Ellington Technologies. We’re here to support you in navigating the opportunities that Netflix advertising presents.
Ellington Technologies can help you start advertising on Netflix today and reach millions of engaged viewers!
