Netflix is set to launch its in-house advertising technology platform. This move comes only a year and a half after Netflix entered the ads business, and it positions Netflix to compete with industry heavyweights like Google, Amazon, and Comcast.
The streaming giant originally partnered with Microsoft to develop its ad tech, which allowed Netflix to quickly enter the ad space and catch up with rivals like Hulu, which has had its own ad server for over a decade. With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future.
This new platform will enable Netflix to create targeted and personalized ad experiences that resonate with its massive user base of 270 million subscribers. Amy Reinhard, Netflix’s president of advertising, stated that bringing their ad tech in-house will allow them to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today.
Netflix is being incredibly strategic about how they present ads because they want their members to have a phenomenal experience. They conduct deep consumer research to make sure they stay ahead of the competition, bringing opportunities that are better for members and better for brands.
While Netflix didn’t specify exactly how its in-house solution will change the way ads are delivered, it’s likely it’ll move away from generic advertisements. Netflix wants to experiment with “episodic” campaigns, which involve a series of ads that tell a story rather than delivering repetitive ads.
Netflix also plans to expand its buying capabilities this summer, which will now include The Trade Desk, Google’s Display & Video 360, and Magnite as partners. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk.
Netflix also touted the success of its ad-supported tier, reporting that 40 million global monthly active users opt for the plan. The ad tier had around 5 million users within six months of launching.
Read more: techcrunch.com