The era of Netflix advertising is finally here! Netflix boasts approximately 230.7 million subscribers as of 2023, and it is expected to reach 500 million subscribers with the launch of an ad-supported tier in late 2022. This makes Netflix an ideal candidate for advertisers of all sizes and budgets to reach consumers on various different screen types.
Benefits of Netflix Ads
While Netflix increasing prices, cracking down on password sharing, and introducing ads to the platform in an effort to increase profits might upset some, it still serves as an excellent opportunity for advertisers.
Reach
The sheer number of users makes it a channel worth paying attention to. The amount of users who are able to be reached ensures a diverse audience.
Targeting
Netflix has access to lots of user insights, including viewing history, preferences, and various demographics. Advertisers are able to use this information to create highly targeted ads that are more likely to be relevant, thus being more likely to be effective.
Engagement
Netflix users tend to be a highly engaged audience in the content they are watching, meaning they may be more receptive to ads integrated within the platform.
Premium Placements
Ads on Netflix are expected to be displayed in highly prominent locations, such as the home page and between episodes. This could increase their viewability and impact.
Exclusivity
For now, Netflix’s advertising offering is limited, meaning that being an early advertiser on the platform could come with benefits. These include being viewed by users as cutting-edge and could also come with efficient CPMs due to fewer competitors within the space.
Netflix Ad-Tier
Netflix already has a large number of subscribers and has notified users that they will be cracking down on password sharing to limit accounts to users located within the same household. This makes their various tier option more attractive to users looking for affordable options. These are the tiers Netflix plans to roll out during the Summer of 2023 with their prices and features.
| Basic with Ads | Basic No Ads | Standard | Premium | |
| Monthly Price | $7 | $10 | $15.50 | $20 |
| Number of Screens that can Watch Simultaneously | 1 | 1 | 2 | 4 |
| Number of Devices you can have Downloads on | 0 | 1 | 2 | 4 |
| HD Available | Yes | Yes | Yes | Yes |
| Ultra HD Available | No | No | No | Yes |
Netflix has come a long way since its initial business strategy of DVDs in bright red envelopes by mail. Online users seem split about Netflix’s newest innovation, but advertisers are in a great position to begin serving ads on an already established platform. Connect with our team of video ad experts to discuss opportunities for your business to get in on the action!
