Newsflash for marketers out there: Netflix might start serving ads soon. But why? Netflix lost a large portion of subscribers in early 2022 for a variety of reasons (inflation in North America, pulling services in Russia, and increased competition to name a few). So, to combat the loss of subscribers, Netflix is considering introducing ads to their platform - a concept their CEO has long avoided. But let’s not get ahead of ourselves - the ads probably won’t start rolling in for a little while, as Netflix needs time to make the adjustment. But when the ads do start to hit Netflix, it’ll be a huge opportunity for marketers everywhere, and one that nobody will want to miss. Let’s find out what marketers can expect from this potential update.

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Easing Into Advertising

There’s a good chance that Netflix won’t have a lot of inventory - or advertising space - open from the get-go. The first change will probably be a limited amount of inventory for advertising to be sold. From there, it will gradually ramp up over time. Considering the high demand it will probably encounter, Netflix may open advertising slots with a high price tag. After the initially steep price, rates would fall as the services grow their ad inventory.

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Customer Data is a Must

Netflix may have a lot of data, but certainly not as much as some of its rivals. Customer information is essential for marketers to provide target advertising, so Netflix may need to ask consumers to opt in and share that kind of data. Only time will tell how customers will respond to this kind of update from a privacy and regulation standpoint.

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New Advertising Approaches?

Netflix is a latecomer to selling ads, and as a result, they’ve had time to consider what kind of changes they’d like to bring to the table. For example, competitors have considered TV-based commerce, which gives customers the ability to purchase something that is being advertised right then and there with the press of a button or two. Another option would be ad formats that are different from what customers are used to. Instead of using 30- or 15-second ads, they may hit customers with static ads while a show is paused, or try delivering “binge ads” which would provide the viewer with one ad-free episode after watching several episodes with ads.

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Giovatto will be ready… How about you?

There’s only so much known so far about Netflix serving ads. But when the opportunity comes, marketers will be jumping on it. Luckily, Giovatto can help. As it is, we have the OTT advertising know-how to target customers and get your message across to the exact audience you’re looking for. Advertising on a huge platform like Netflix won’t be an exception. Want to make sure your OTT ads reach the right audience? Get a jump start by contacting the Giovatto Agency today. We’ll make sure your business is good to go by the time Netflix launches ad-serving capabilities for a price that fits your budget!

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