Netflix confirms the level with advertising for November

Well, it’s official. Netflix has ads starting in November.

the netflix Basic With Ads The plan will launch in 12 countries on November 3, including the UK, Italy, and Korea, and will cost viewers $6.99 per month (take that, Hulu). Canada and Mexico get the first dibs on November 1.

Netflix was originally planning an ad tier for 2023, but the streaming wars are going full steam ahead. Disney announced that ads will be coming to Disney+ in December, so Netflix decided to speed up the process a bit to compete for advertisers’ budgets.

In addition to beating Disney on release date, Netflix also wants to have the lightest ad load. Peacock has boasted the lightest ad load in the streaming landscape for years, hovering around five minutes, which is why Netflix promises no more than four to five minutes of pre- and intermission ads per hour of content. While shorter six-second ads have become popular on CTV, Netflix will run 15-30 second ads at launch.

Netflix is ​​taking a conservative approach to targeting. At launch, Netflix will start with extensive audience targeting capabilities, such as by country or by genre, including allowing advertisers to target the top ten Netflix shows.

“Netflix [user] the data will only be used to support ad experiences on Netflix and will not be used to build profiles for targeted advertising elsewhere,” said Jeremi Gorman, Netflix’s new president of worldwide advertising, during a press conference on Thursday. Gorman was Snap’s chief commercial officer before joining Netflix a couple of months ago.

Netflix also revealed more of its lineup of ad tech and measurement partners, after surprising the ad tech industry with its choice of Microsoft as its ad sales partner over the summer.

“Nothing of this [progress] it would have been possible without Microsoft,” Gorman said. “Microsoft is supporting us on both the technology side and the sales side, as well as focusing on a privacy-first approach for our consumers.”

For ad verification around viewability and valid traffic, the streaming titan signed deals with DoubleVerify and Integral Ad Science (IAS) earlier this week. Those integrations won’t be complete until the first quarter of next year. Brands will also be able to exclude their ads from content that is not appropriate for the brand.

And on the audience measurement front, Netflix casts a vote for Nielsen. The streaming giant will use Nielsen’s Digital Ad Ratings tool, which will eventually become part of Nielsen ONE starting in 2023.

Netflix is ​​not creepy

Netflix also underscored its rationale for running ads, which is to curb subscriber churn with cheaper pricing options.

Netflix has been rapidly losing subscribers to its competition, recently celebrating the loss of “only” one million subscribers instead of two million.

“Lower consumer-facing pricing, with good incremental ad monetization, will help us grow membership while increasing revenue and revenue streams,” said Greg Peters, Netflix chief product officer. in the conference call.

Subscriber churn is why Netflix’s picks for their advertising level reek of competition. In addition to rushing to beat Disney to get its ad-supported tier to market first, Netflix is ​​also being strategic about pricing (not to mention poaching two of Snap’s execs).

Netflix’s $6.99 per month price beats out Hulu’s AVOD option, which just went up from $6.99 to $7.99 per month. Disney also plans to charge $7.99 a month for ad-supported Disney Plus.

It’s early days for Netflix ad sales, but not for lack of demand. While the enhanced launch feels rushed and the company is brand new to ad sales, Netflix has already been working behind the scenes to sell off its inventory.

“We will be working with hundreds of advertisers on the launch, from major car marketers to CPG companies,” Gorman said. “Our launch inventory is almost out of stock.”

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