just two years ago Netflix launched “Basic with ads”, its advertising-supported subscription plan, opening a new window of exposure for advertisers. The streaming platform now takes stock of the performance of its proposal by sharing some data on its penetration and effectiveness.
As announced in a press release, the plan with ads has 70 million monthly active users globally. This is almost double the 40 million monthly active users that the company claimed to have last May, when it made its second Upfront presentation to advertisers.
Netflix attributes the success of the plan to the interest of the titles in its catalog
Furthermore, it ensures that around 50% of new subscriptions are made for the plan with advertising in those markets that have this option, 10% compared to six months ago. Netflix attributes the success of ad-supported subscription to prominent titles in its catalog and the interest they arouse among viewers.
To demonstrate the value of its proposal, the company has shared some success stories, although it does not specify the brands. For example, he claims that an American automobile company generated more interaction (searches and web visits) after running its campaign on Netflix. He notes that subscribers to the advertising-supported plan had 3.2 times more likely to engage with the ad than other connected TV services, and 4.5 times more likely compared to linear TV.
He also shares the case of a beauty advertiser in Mexico, who experienced a +30 point increase in brand recognition and +15 points in the message association, compared to industry benchmarks.
Advances in measurement
In the field of measurementNetflix has highlighted the efforts it is making to improve the experience. Thus, he has indicated that he has partnered with the measurement software VideoAmp in the United States to offer live, multi-screen audience measurement, beginning in January.
Along these lines, he points out that in Brazil he collaborates with Kantar Ibope CAV (Campaign Audience Validation) to provide reach and frequency information between publishers (cross-publisher) starting in early 2025.
On the other hand, he explained that he has expanded his relationship with the measurement entity Barb in the United Kingdom to include the ad-supported plan, and ensures that viewers of the ad-supported subscription watch Netflix twice as much compared to other streaming services.
Netflix’s own advertising platform
In addition, the company has stated that Canada is the first market that operates exclusively with its own advertising technology platform, which was already presented last May. Netflix will roll out this platform globally over the next year and has promised to bring improvements to forecasting, reporting, measurement and insights.
Netflix has taken advantage of the second anniversary of its advertising plan to share progress in terms of programmatic advertising, whose offer was launched last August and is now available in the United States, Brazil, Canada and Mexico. Next February the option will be active in Europe, and throughout the year in Australia, Japan and South Korea.
Trade associations
On the other hand, it has highlighted some of its new business partnerships. Thus, he assures that he has sold all his advertising inventory for live broadcast of the NFL games on Christmas Day; and for this event it has established sponsorship agreements with FanDuel and Verizon. Other advertisers will broadcast their spots during the broadcast.
It has also gained advertising muscle by advancing the collaboration it has established with Kia in Korea on the occasion of the new season of “The Squid Game”. The sponsorship promotes the launch of a new model on the market, and for this the platform and the brand have created a three-part creative and will organize an experiential event.
