How to Buy Ads on Netflix: Specs & Tactics for Marketers

Table of Contents

  1. Introduction
  2. Why Did Netflix Start Offering Ads?
  3. How to Start Advertising on Netflix
  4. Ad Types & Specs for Netflix Ads
  5. Why Advertise on Netflix?
  6. Best Practices When Advertising on Netflix
  7. Is Netflix Advertising Right for Your Brand?
  8. FAQ

Introduction

Remember the excitement when Netflix announced an ad-supported tier? This seismic shift in the digital streaming landscape has opened up a whole new frontier for marketers. As the streaming giant expands its repertoire, advertisers are looking for ways to tap into its vast and engaged audience. This blog post will walk you through the essentials of advertising on Netflix, from understanding the platform's ad types to best practices for optimizing your campaigns. By the end of this post, you’ll have a comprehensive understanding of how to leverage Netflix’s advertising opportunities to drive your marketing goals.

Why Did Netflix Start Offering Ads?

Netflix, once synonymous with ad-free streaming, introduced an ad-supported tier in November 2022. This was a strategic move aimed at diversifying revenue streams amidst rising subscription costs and growing competition from other Over-The-Top (OTT) platforms like Hulu and Peacock. The new tier is designed to attract budget-conscious viewers without compromising the premium experience for those willing to pay more.

Initially, adoption was slow, but momentum quickly built up. Today, around 40% of new sign-ups are opting for the ad-supported version, giving advertisers access to approximately 40 million users. For marketers, this vast and engaged audience represents a golden opportunity to extend their reach.

How to Start Advertising on Netflix

Ready to jump into advertising on Netflix? There are three primary methods to consider:

1. Netflix Ads Manager

Netflix Ads Manager, powered by Microsoft, allows brands to purchase ad space directly. However, it comes with substantial minimum spending requirements, making it most suitable for large brands with hefty budgets.

2. Partnering with an Agency

For brands that find direct buys too expensive or complicated, agencies like Tinuiti offer a valuable alternative. These streaming agencies can help navigate the complex landscape of Netflix advertising, providing expertise and potentially more flexible spending options.

3. Ad Tech Partners

Ad tech companies, such as Microsoft, offer technological solutions for streamlining your advertising efforts. These partners typically provide tools for optimizing ad delivery but are more hands-off compared to agencies.

Selecting the right approach depends on your budget, experience, and campaign objectives. Large brands with in-house marketing teams might prefer Netflix Ads Manager, while others may benefit more from the support offered by agencies or ad tech partners.

Ad Types & Specs for Netflix Ads

Understanding the ad formats and specifications is crucial for creating ads that resonate with Netflix’s audience.

Netflix Ad Types

Netflix currently offers two primary ad types:

  • Pre-roll Ads: These ads play before the content starts.
  • Mid-roll Ads: These ads appear during natural plot breaks.

The platform aims to minimize disruption by placing ads at logical breaks in the content, ensuring a seamless viewing experience. Netflix is also planning to introduce innovative ad formats like binge ads. This feature will reward viewers with an ad-free fourth episode after watching three consecutive episodes—a novel way to keep viewers engaged while also providing value to advertisers.

In addition, QR code integration will become available in 2024, expanding interactive opportunities for advertisers. Netflix has also secured rights to live events, including WWE Raw and NFL Christmas games, making live advertising a feasible option.

Netflix Ad Specs

When creating ads for Netflix, adhering to specifications is vital. While the platform frequently updates its guidelines, current specs generally require high-quality video formats and adherence to specific time constraints. As Netflix evolves its advertising capabilities, staying updated with the latest specs and requirements is crucial for campaign success.

Why Advertise on Netflix?

Advertising on Netflix offers several unique advantages:

  1. Massive Reach: With a user base of around 270 million paid subscribers, Netflix offers unparalleled audience access.

  2. Engaged Viewers: The platform’s content keeps viewers highly engaged, increasing the likelihood that they’ll interact with your ads.

  3. Innovative Formats: From pre-roll and mid-roll ads to upcoming binge ad formats and QR code integration, Netflix offers various creative ways to connect with your audience.

By leveraging these benefits, brands can significantly boost their visibility and engagement.

Best Practices When Advertising on Netflix

To maximize the effectiveness of your Netflix advertising campaigns, it's essential to adopt a few best practices:

Explore Audience Targeting Capabilities

Netflix’s audience targeting capabilities are evolving, currently focusing on demographics, viewing habits, and content context. Here's how you can utilize these options:

  • Demographics: Target specific age groups, genders, and locations.

  • Viewing Habits: Reach users based on their content consumption patterns.

  • Content Context: Place your ads within relevant genres or shows that align with your brand values.

Using a mix of these targeting options, you can tailor your campaigns to reach the most relevant audience, enhancing user engagement and campaign effectiveness.

Test Your Ad Creative

Just like any other marketing platform, testing your ad creatives on Netflix is crucial for optimization. Here’s why:

  • Identify High-Performing Ads: Determine which ads resonate best with your audience.

  • Optimize Messaging: Refine your messaging to better connect with viewers.

  • Enhance ROI: Improving performance through testing ensures better returns on your ad spend.

Regularly test and iterate your ad creatives to keep them fresh and relevant.

Measure and Analyze Your Results

While Netflix doesn’t yet offer one-to-one conversion measurement, they provide brand awareness and lift studies. Additionally, Netflix is expanding its buying capabilities to include third-party measurement partners like The Trade Desk, Google’s Display & Video 360, and Magnite. This expansion will offer new insights into campaign performance.

By the end of 2025, Netflix plans to launch its in-house advertising technology platform, paving the way for more advanced buying options, insights, and measurement tools. Keeping an eye on these developments and using available measurement tools can greatly aid in evaluating and optimizing your campaigns.

Is Netflix Advertising Right for Your Brand?

Ultimately, advertising on Netflix offers an exceptional opportunity to reach a vast, highly engaged audience. This can be particularly valuable for brands seeking to increase awareness and build associations with premium content.

For many brands, partnering with agencies like Tinuiti can simplify the complexities of Netflix advertising, providing expert guidance and maximizing campaign effectiveness.

Ready to explore Netflix advertising for your brand? Reach out to the Tinuiti team for professional guidance and start leveraging one of the world’s largest streaming platforms for your marketing success.

FAQ

Q1: What is the primary benefit of advertising on Netflix? The primary benefit is accessing Netflix’s massive and highly engaged user base, offering significant potential for increased brand visibility and engagement.

Q2: How are ads placed within Netflix content? Ads are placed during natural plot breaks in the content, ensuring a seamless viewing experience for the user.

Q3: What targeting options are available for Netflix ads? Netflix offers targeting based on demographics, viewing habits, and content context. This allows advertisers to reach specific audiences more effectively.

Q4: Can small businesses advertise on Netflix? While the high minimum spending requirements may be challenging for small businesses, partnering with agencies or ad tech providers can offer more flexible options.

Q5: How can brands measure the success of their Netflix ad campaigns? Brands can use brand awareness and lift studies provided by Netflix. The platform is also expanding its capabilities with third-party measurement partners to offer more comprehensive insights.

Exploring advertising opportunities on Netflix can provide your brand with unparalleled reach and engagement. Don’t miss out on this evolving landscape—contact Tinuiti today to get started!

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