Ad Tech Insights
Netflix’s Upfront Insights
The story: Netflix's ad-supported plan has reached 40 million monthly active users, and this new subscription tier accounts for over 40% of Netflix sign ups in markets where it’s available. The streaming platform also announced that The Trade Desk, Google's Display & Video 360, and Magnite will join Microsoft as its main programmatic partners -- a change we can expect to see this summer.
Additionally, Netflix plans to launch its own ad tech platform, striving to give advertisers new ways to buy ads, leverage insights, and measure impact.
“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience,” said Amy Reinhard, Netflix’s President of Advertising. “We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands.”
The takeaway: Netflix’s rapid growth is owed to strategic partnerships, highly engaged audiences, and an emphasis on measurement. This, paired with introducing high-profile content like NFL games, celebrity boxing matches, and proven hits like “Squid Games”, all poise Netflix to create impactful advertising opportunities down the road.
Extra Industry Insights
- More than 70% of Netflix’s ad-supported users watch at least 10 hours per month, with over 50% watching more than 20 hours per month. This high engagement is just one win the streaming service presented advertisers with at their recent upfront.
- Digital ad spend is expected to grow about 10% in both 2024 and 2025, led by continued growth in retail media and connected TV (CTV), according to a recent report by Advertiser Perceptions.
- David Hu, Head of Ecommerce Marketplace, APAC MEA at Electrolux, predicts a more integrated and data-driven iteration of retail media, as advancements in AI and machine learning will enable even more precise targeting and measurement.
- Neha Khullar, Hershey’s Marketing & Digital Lead, Philippines, Singapore, Malaysia, emphasizes the importance of investing in sophisticated ad products that capture consumers’ attention and provide seamless options along the purchase journey.
Kevel Catchup
LIVE: Kevel Blog “What Are Ad Auctions?”
Kevel’s latest blog explores the best ad auction strategies for publishers. Learn more about first-price and second-price auctions, waterfall auctions, lottery selection for ad success, and so much more.
Check out the full blog post here.
Keep Learning
WATCH - Melanie Babcock, VP of Orange Apron Media by The Home Depot chats with Beet.tv about retail media innovation and growth: “We Have Audiences Grouped by Projects, Which No One Else Has.”
READ - The Path to Purchase Institute’s coverage of the World Retail Congress, held this April 16th-17th in Paris, gave a first-quarter report on what is exercising the minds of European and global retail leaders.
LISTEN - The Marketecture podcast’s IAB Tech Lab Special episode covers The Transparency and Consent Framework (TCF), addressing key challenges in digital advertising related to the GDPR and ePrivacy Regulation.
