During its Upfronts presentation on Wednesday, Netflix said it is starting its own advertising technology platform. This comes just over a year and a half after Netflix started selling ads. With this move, it goes up against big names in the business that have ad servers, such as Google, Amazon, and Comcast.
The news means that the streaming giant will be advertising in a very different way going forward. When Netflix first started making ads, it worked with Microsoft to make them. This helped the company get into the ad business quickly and catch up to competitors like Hulu, which has had its own ad server for over a decade.
Netflix will be in charge of all of its advertising from now on since it has its own ad tech. This strategic move will give the company the tools it needs to make ads that are more relevant and engaging for its 270 million customers.
The president of advertising at Netflix, Amy Reinhard, said, “Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today.” Because we want our members to have a great experience, we’re being very careful about how we show ads. To stay ahead of the competition and bring better chances for both members and brands, we do a lot of research on our customers.
Although Netflix didn’t say how its own answer will change the way ads are shown, it’s likely that it will stop using generic ads. The Financial Times says that Netflix wants to try out “episodic” campaigns, which are made up of a number of ads that tell a story instead of showing the same ads over and over.
During the presentation, Netflix also said that it will be able to buy more things this summer, with companies like The Trade Desk, Google’s Display & Video 360, and Magnite. Notably, Disney+, a rival, also works with The Trade Desk to sell ads.
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Netflix also talked up the success of its ad-supported tier, saying that 40 million people around the world choose it every month. About 5 million people used the ad tier in the first six months after it started.
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