Is Netflix Advertising Right for Your Business?

Last month Netflix joined the growing connected TV (CTV) advertising ecosystem when it debuted an ad-supported subscription tier. Operating in partnership with Microsoft advertising, the new subscription tier could provide brands with the opportunity to connect with Netflix’s 73 million subscribers across the US and Canada. But is Netflix advertising the right fit for your business?

Netflix Advertising, Today

The new ad-supported subscription model is still in its early stages, and inventory is only available to purchase directly from Netflix or the Microsoft-owned DSP, Xandr. Audience targeting options are very limited at the moment, offering targeting based on:

• Subscriber country
• Movie and TV genre
• Netflix Daily Top 10 viewers

Targeting based on age and gender is expected to be available soon.

How valuable the Netflix ad audience will be for brands in the future is unknown. When you toss in the price-conscious nature of the new ad-supported subscription tier, it is even harder to predict how the audience will perform across verticals. 

Netflix ads are expected to cost a premium of $60-$70 cost per thousand impressions (CPM). The higher pricing paired with their targeting capabilities indicates that Netflix is targeting major brands that can afford and want nationwide ad spend on a so far untested market.

What Does This Mean for Adpearance Clients?

Given that any campaigns would have to run nationwide without much targeting beyond that, Netflix advertising isn’t a viable advertising platform for a vast majority of our brick-and-mortar clients. We will keep an eye out for when Netflix allows for more localized geo-targeting and for developments in the audience targeting capabilities.

Interested in Adding Connected TV to Your Ad Strategy?

Our team of digital marketers is available to answer questions or discuss CTV ads and strategies. Reach out anytime or schedule a free digital analysis to get started.

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