Netflix, the streaming giant that is still relatively new to dealing with Madison Avenue, seems to be winning more advertisers over to its side.
The streamer said it had concluded the bulk of its negotiations tied to the “upfront,” the annual industry market during which U.S. media companies try to sell a large part of their commercial inventory ahead of their next cycle of programming. Netflix said in a memo attributed to Amy Reinhard, president of advertising, that it secured an “increase in upfront ad sales commitments over 2023, in-line with our expectations” that it described as “150% plus.” Netflix did not cite specific volume figures for last year or 2024.
The directional growth seems robust, but Netflix remains a smaller player in the U.S. market compared to traditional rivals such as Disney, NBCUniversal or Paramount Global. Media buyers say the total number of U.S. subscribers to its ad tier is not necessarily substantial enough to warrant large-scale deals at present. Even so, some advertisers have made commitments to Netflix in the interest of fomenting strong ties amid expectations that the company’s ad-tier subscriptions will grow.
With some of those dynamics in the market, media buyers say Netflix has in recent months begun to focus more intently on offers that tie a product or service more closely to the content in which ads appear, tapping so-called “product placement” or “branded content.” The company recently unveiled a deal with Google that ties its “Emily in Paris” series to customized vignetted and pause ad touting Google Lens.
Netflix said it struck deals for partnerships tied to series and films including “Squid Game,” “Wednesday,” “Outer Banks,” “Happy Gilmore 2,” “Ginny & Georgia,” and “Love is Blind,” as well around live events including WWE Raw, and its new Christmas Day NFL games.
The company also put a spotlight on ad deals that give sponsors a presence in various markets around the world. The third season of “Bridgerton,” for example, boasts a roster of “international on-screen title sponsors” that include L’Oreal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois, and Hilton.
Netflix said its efforts to launch its own ad-tech platform remain on track, with tests planned for Canada in November. Netflix plans to launch the system around the world in 2025. Netflix initially teamed up with Microsoft for technology to power its ad-sales efforts. Netflix plans to expand its private programmatic marketplace and its ties to various measurement vendors in the months ahead.
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