Netflix’s ad-supported tier is gaining momentum quickly, reaching 40 million monthly users worldwide, the streamer announced at its Upfront 2024 presentation.
The paid ad offering, initially seen as a risky move, has quickly become a success for Netflix as it seeks new revenue streams amid intensifying streaming competition.
Why we care Netflix’s platform offers advertisers a wide and expanding pool of potential customers. If you’re looking for new advertising opportunities, you might want to explore real-time audiences.
Driving the news. Just six months after reaching 5 million subscribers with advertising following launch in late 2022, this number has increased to 40 million.
In regions where ad tiering is available, more than 40% of new Netflix sign-ups opt for the cheapest ad-supported plan. The service now has 270 million total subscribers across all of its price tiers.
between the lines Netflix is doubling down on the ad business by incorporating its in-house ad technology.
It’s launching its own advertising platform to “drive the ad plan to the same level of excellence” as its streaming technology, according to Netflix’s advertising president, Amy Reinhard. Although it initially partnered solely with Microsoft, Netflix now also uses Google, The Trade Desk, and Magnite for its ad and technology sales.
What they are saying “Our advertising membership has been overwhelmingly successful,” Ted Sarandos, co-CEO of Netflix, said during the presentation. “We have just begun this journey.”
The bottom line. Netflix’s ability to rapidly scale its ad business demonstrates the power of its brand and content, indicating a secure new revenue stream as it digs deeper into advertising.
Add Search Engine Land to your Google News feed.
New in Search Engine Land
About the author
Anu Adegbola has been a paid media editor for Search Engine Land since 2024. She covers paid search, paid social media, retail media, video and more.
In 2008, Anu’s career began with
deliver digital marketing campaigns (mainly but not exclusively Paid Search) by creating strategies, maximizing ROI, automating repetitive processes and making all marketing departments efficient through inspiring leadership both on the agency, client and marketing technology side.
Outside of Search Engine Land article editing, she is the founder of the PPC networking event: PPC Live, host of weekly podcast PPCChat Roundup, ibRand Evangelist at ClickTech.
He is also an international speaker with some of the stages he has presented being SMX (USA), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Live Chat, AdWorld Experience (Bologna) and more.
[ad_2]
Source link
