Netflix With Ads: Is It Really Happening?

netflix with ads

Did you know that when Netflix started out it was shipping DVDs to people’s homes and now they have subscribers in 190 countries?

Even though Netflix is one of the world’s most popular video streaming channels, they have lost many subscribers lately. In order to reach a larger audience, they have decided to add a subscription option that includes video advertising. People will have to option to pay less monthly and watch the ads or they can pay more so I don’t see the advertisements. 

If you’re a business owner, this could be an excellent opportunity for you. However, there are some things you need to know about Netflix with ads. We are going to tell you about what’s coming so you can plan, prepare, and think about this business opportunity. 

When Are Ads Starting 

The Netflix ads were originally going to launch sometime in early 2023. However, they have decided to move up the date to November 1, 2022.

It’s believed they are trying to launch before Disney+, as they have announced they will be including an ad subscription on December 8, 2022.

How Much Will They Cost

Companies who have heard Netflix’s advertisement pitch, report the prices being extremely high. Right now they are asking for $60 to $65 for every 1,000 views (CPMs). This makes them the most expensive ad package among video streaming services. 

They are asking for a year’s commitment upfront, ranging from $10 million to $20 million. There are some reports that say there will be an option to choose from a 30-second or 60-second commercial, while others state it’s been 15 and 30 seconds.

Each commercial can be played a minimum of once an hour. It seems like there will also be a cap of four minutes per hour worth of ads. 

Netflix’s Pitch to Advertisers 

The company believes Netflix with ads will increase its subscriber list by around 500,000 once they launch. That is a lot of viewership for companies.

They are also telling brands they will be able to target certain audiences so their ads are effective and shown to the appropriate people. For example, since Netflix is worldwide, it wouldn’t do a business any good to advertise to people in Europe if they only ship in the United States.

They will also be adding other parameters like age, time spent watching, and gender to increase viewership. One thing that businesses and advertisers aren’t happy with is that they won’t be able to give businesses any data or measurements.

It’s pretty standard in the industry for advertisers to receive data after a commercial airs so they can track its performance. Netflix, however, isn’t offering these stats as of right now. They may change that before the day of launch or soon after. 

Things to Know

Netflix, at this time, is being fairly picky with who they are allowing to air ads. It seems they are only going to work with larger brands and probably ones they’ve worked with in the past such as Coke and GMC. They want high-quality and creative ads that make a statement. 

At the time of launch, it’s believed that businesses won’t be able to choose which programming they want. Netflix will allow companies to choose which package they want, based on genre. 

Netflix has partnered with Microsoft, and they will be selling the ads. Jeremi Gorman from Snap’s and Peter Naylor will be the president of advertising worldwide and the vice president of sales. 

Other Competitor Plans

Streaming service ads are becoming popular and Netflix is following the lead of Hulu, HBO Max, Peacock, and a few others. Viewers don’t like the watch a lot of ads and tend to turn them down when they come on.

Netflix is stating that because they are offering fewer ads per hour, they will capture the attention of the audience. The subscriber will have a better experience because there aren’t as many ads as some of the other streaming services. 

The prices subscribers pay don’t vary much from service to service.

  • Hulu: $7.99 monthly 
  • HBO Max: $10 monthly
  • Paramount Plus: $5 monthly 
  • Peacock: $4.99 monthly 

Netflix has not released their prices yet for their new ad-supported tier. Right now their cheapest subscription is $9.99. 

Netflix Ads Advice

When you’re creating an ad, it’s crucial to think about your audience and what they want to see. When you’re putting an ad on a streaming site, like Netflix, people want to get back to watching their show. Keeping the commercial short can keep the viewer interested and not annoyed. 

If you have other video ads, you may want to consider making custom ones for Netflix, this will show your Netflix viewers original content. You can also tailor the ads to their favorite shows and movies; this will give you a way to connect with them. 

Nail down your audience and you’ll drum up more business by sticking to a specific niche. Research your audience, this will tell you if advertising on Netflix will even be worth the money. 

Netflix With Ads

Advertising is a great way to gain business, and since Netflix is a popular company, if you have the opportunity and the money to work with them, it could be beneficial. As you can see, Netflix with ads is still new and hasn’t been completely perfected yet. Once they launch and begin to work out the issues, their ad plans could be very effective. 

Until then, there is a lot of programmatic advertising. If you have questions or if you want to improve your marketing with ads, keep browsing our site.  Edit Article Approve Article

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