Netflix expands its ad platform, “The Netflix Ads Suite,” now reaching 94 million global monthly users.
The platform integrates AI for in-show product placement and interactive ads, set to launch by 2026.
U.S. users of Netflix’s ad tier spend an average of 41 hours monthly, highlighting strong engagement.
Netflix aims to challenge digital ad giants by leveraging its content and technology.
The biggest digital advertising players are on a quest to bundle everything ad-related in house. This push for owned and operated tech, driven by a need for better data control and fresh revenue, looks to give more marketers access to powerful advertising tools. Netflix is diving headfirst into this arena, showing off major upgrades to its ad game.
Ad suite in play: At its May 14 Upfront, Netflix displayed the growth of its own ad platform, “The Netflix Ads Suite,” and announced its ad-supported tier now has 94 million global monthly users. Amy Reinhard, Netflix’s Ads President, said controlling their ad tech means they can deliver “newer tools, better measurement, and more creative formats.” The platform, with Netflix’s own ad server and Magnite as an SSP, is going global: already active in the U.S. and Canada, it hits all 12 ad-supported countries by June 2025.
Data and AI fuel: The beefed-up Ads Suite gives advertisers new data tools, letting them mix their own first-party data through LiveRamp or directly, and tap into third-party data from Experian and Acxiom. Netflix is also making a big AI bet, launching new ad types that use generative AI for in-show product placement and to create interactive mid-roll and pause ads. These smarter, AI-powered ads are set to roll out by 2026.
Eyes on engagement: Netflix reported strong numbers for its ad tier, with U.S. users spending an average of 41 hours a month on the platform. Reinhard said, “members pay as much attention to mid-roll ads as they do to the shows and movies themselves,” a clear draw for brands. This sticky viewership, plus the platform’s reach, is key to Netflix’s pitch as a top-tier ad spot.
Bigger picture: These moves show Netflix wants to build a serious ad business, stepping up from its 2022 ad debut to challenge digital ad giants. The company plans to use its “superpower” of combining “best-in-class technology with shows and movies that everyone is watching and talking about,” as Reinhard framed it. Chief Marketing Officer Marian Lee echoed this, telling advertisers, “At Netflix, we will treat your brand like we treat ours.”
Road ahead: With its ad business foundation solid, Netflix expects innovation to pick up speed. “Going forward, the pace of progress will be even faster,” Reinhard said, hinting at more ad tech and creative updates. This drive for quick progress, alongside its growing ad-tier audience, makes Netflix an ever-stronger player in the changing streaming and ad markets.
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