Netflix is shaking up the advertising world with a series of updates that promise to redefine how brands connect with audiences on the platform. Over the past few months, the streaming giant has announced its latest in advertising opportunities across targeting, measurement, purchasing, ad tiers, and sports. What’s caught our eye? Nearly two years into its ad-supported tier implementation, the streaming giant has introduced third-party pharma targeting. As we head into planning season, here’s everything you need to know to stay ahead of the curve.
Targeting
Netflix first launched its advertising tier with limited first-party targeting, including demographic, genre, and show targeting. The recent update shared, Netflix is now expanding first-party targeting to include solutions like dayparting and announced it will accept third-party targeting and data options. Noteworthy for Butler/Till, there are some updates in the pharma space including:
Third-Party Pharma Targeting:
- Swoop targeting is approved and available for Netflix’s partners as of July 2024.
- Crossix targeting is also available as of July 2024.
- IQVIA targeting will be available in late summer or early fall, with the exact date to be determined (TBD).
- Medicx targeting will be available in 2025, with the exact date TBD.
- Netflix shared there are other partners on the roadmap, but that is all they can share at this time.
Outside of the pharma space, Netflix’s goal is to be data-agnostic and ingest any data sets through LiveRamp or Experian, including client data.
Measurement
When it comes to measurement, Netflix shared its intentions to add many partners to their roadmap based on agency needs and input. What does this mean for those in the pharma space?
- Crossix measurement is set to be approved either in December 2024 or Q1 2025 at the latest.
- IQVIA measurement will be available mid-year 2025. Netflix has not provided an exact date.
- Both targeting and measurement are available via Direct IO and Programmatic.
Programmatic Purchasing
There is no shortage of exciting updates in programmatic purchasing as Netflix shifts from its initial heavy reliance on Microsoft as its main programmatic partner during the launch. With nearly two years of ads now, Netflix is looking to open the programmatic purchasing options to The Trade Desk, Google’s DV360, and Magnite.
Ad Tiers
The advertising ecosystem is interested to see the aftereffects of Netflix’s newly announced ad tiers. The shift is from four ad tiers to two: an ad-supported plan and an ad-free plan. The “Standard with ads” subscription is priced at $6.99 monthly. This tier allows subscribers to access nearly the entire library of films and series, except a select few. It permits streaming on two devices simultaneously and the ability to download content on two devices. The new “Standard” subscription, priced at $15.49 per month, provides all the benefits of the current “Standard with ads” option but without any advertisements. The recent changes to Netflix’s subscription plans have already raised their ad-supported U.S. numbers to around 14.5 million, with projections as high as 30 million.
Live Sports
We’re seeing an uptick in Netflix’s coverage of live sports including aired exhibition events for golf and tennis. The recent announcement shared that starting Christmas 2024, Netflix will broadcast two NFL games as part of a three-year agreement. They also have a boxing exhibition between Jake Paul and Mike Tyson planned for Q4 2024. In 2025, Netflix will begin streaming WWE’s flagship show “RAW” live. It’s important to note that live sports will be a way to reach all Netflix users, including those who pay for the non-ad-supported tier.
As Netflix continues to innovate and expand its advertising offerings, these latest updates signify a major shift in how the platform engages with advertisers and viewers alike. As we move into the planning season, Butler/Till will be staying informed about these changes to leverage Netflix’s advertising potential to its fullest. For any questions on these updates, please contact our experts today.
Contributors: Andrew McClelland
