Netflix joins the programmatic advertising arena

In their recent Upfront 2024 post, Netflix announced the ‘Year of Growth and Momentum’ featuring a slew of fan favourite shows returning to the platform, the development of an in-house ad tech platform by the end of 2025, and expansion of programmatic buying capabilities to include major DSPs The Trade Desk, DV360, and Magnite as soon as Summer 2024.

What does this mean for Programmatic campaigns? 

This is exciting news for advertisers utilising these DSPs, with Netflix’s premium ad inventory and user data potentially providing a significant boost to the efficacy of programmatic campaigns. Over 40% of all Netflix’s sign-ups are for their ad-supported plan, where the plan is available. That represents a staggering number of potential impressions from highly engaged viewers.

Netflix has not explicitly stated whether it will make standard display inventory available or focus exclusively on video inventory. It goes without saying that Netflix’s core competency is video, but the introduction of standard display placements would not be entirely out of the question. Companion banners and sponsored content on the homepage both seem like reasonable potential options, if they choose to move in this direction.

Why should advertisers opt for Programmatic Display campaigns? 

The entry of Netflix into the programmatic space is a great example of why advertisers should opt for a performance DSP instead of running display campaigns through a less comprehensive platform like Google Ads. Netflix's loyal and engaged user-base, deep well of user data and sophisticated recommendation algorithms mean that programmatic advertisers should be able reach their target audiences with a significant degree of accuracy. What’s more, placing ads beside premium content like smash-hit TV shows, where your target audience are at their most engaged and attentive, gives each impression significantly more impact.

What does this move by Netflix mean for digital advertising? 

Netflix embracing programmatic advertising signals shift in the dynamics of the digital advertising landscape, especially around video content. As the industry adapts to this new player, expect to see strategic shifts from other major video platforms like YouTube and TikTok as they adapt to the presence of a significant competitor.

In the short term, though, this means more relevant ads for Netflix viewers and potentially higher conversion rates for programmatic campaigns. That sounds like a winning combination to me!

Get in touch today to find out how equimedia can help you to run video advertising on platforms like Netflix and YouTube through our programmatic solution Kaizen. We are waiting to hear from you!