Netflix Advertising in 2024: Complete Guide for Marketers

Last Updated: June 9, 20246.2 min readCategories: Connected TV (CTV), Marketing

Netflix advertising in 2024 offers a unique opportunity for marketers to reach a highly engaged audience through a premium content environment. With the platform’s introduction of ad-supported subscriptions, advertisers can now leverage precision targeting and comprehensive analytics to optimize their campaigns.

This guide will explore the process, benefits, and costs associated with advertising on Netflix, providing marketers with the insights needed to effectively utilize this emerging advertising channel.

What Is Netflix Advertising?

Netflix advertising is a recent initiative that allows marketers to place CTV ads within Netflix’s ad-supported subscription plans.

This form of advertising provides access to a highly engaged audience, with limited ad interruptions enhancing viewer receptivity. Advertisers benefit from Netflix’s precise targeting capabilities and detailed analytics to optimize their streaming advertising campaigns effectively.

Benefits of Netflix Advertising

Advertising on Netflix offers numerous advantages for marketers looking to leverage a premium platform. Some of its benefits include:

1. Precision Targeting

Netflix provides advanced targeting options, allowing advertisers to reach specific demographics and interests. This precision ensures that OTT ads are shown to the most relevant audience, enhancing effectiveness.

2. Elevated Engagement Levels

With limited ad breaks, viewers are less likely to experience ad fatigue, resulting in higher engagement rates. This means that TV ads through Netflix are more likely to capture and retain viewer attention.

3. Premium Content Setting

Ads are placed within high-quality content, which enhances the perceived value and credibility of the advertisements. This premium environment aligns ads with well-regarded shows and movies.

4. Reach a Younger Audience

Netflix has a strong appeal among younger demographics, offering advertisers access to a coveted market segment. This is particularly beneficial for brands targeting millennials and Gen Z.

5. In-depth Analytics and Reporting

Netflix provides comprehensive analytics for CTV measurement, allowing marketers to track performance and optimize their campaigns. Detailed reporting helps in understanding viewer behavior and refining ad strategies for better outcomes.

How Does Netflix Advertising Work?

Netflix advertising operates through its ad-supported subscription tiers, where advertisers can purchase ad space to reach specific audiences. Ads are displayed during brief ad breaks, typically totaling around four minutes per hour, ensuring high viewer engagement. Advertisers benefit from Netflix’s precise targeting capabilities and comprehensive analytics to optimize and measure their campaign performance.

Netflix Ad Manager, Explained

The Netflix Ad Manager is a comprehensive platform designed to help advertisers manage their campaigns on Netflix’s ad-supported tiers. It offers a suite of tools to optimize ad placements and reach targeted audiences effectively.

Features of the Netflix Ad Manager include:

  • Targeting Options: Allows precise audience segmentation based on demographics, interests, and viewing behavior.
  • Budget Control: Facilitates setting and managing advertising budgets to ensure cost-effective campaigns.
  • Real-Time Analytics: Provides real-time performance data, enabling advertisers to make immediate adjustments and optimize campaigns.
  • Creative Flexibility: Supports various ad formats, allowing for diverse and engaging creative executions.
  • Geographic Targeting: Enables advertisers to target specific geographic locations, ensuring that ads reach the right markets.

How To Advertise on Netflix

Netflix advertising is powered by Microsoft, and to get started, you need to submit your information through the provided form here. Alternatively, you can sign up for a CTV advertising platform that can manage your Netflix ads for you.

From there, the process should look something like this:

Step 1. Log In to Your Netflix Ad Manager Account

Access the Netflix Ad Manager platform using your credentials. If you don’t have an account, follow the instructions to create one, which typically involves linking your information provided to Microsoft.

Step 2. Set Up Your Campaign Details and Budget

Define your campaign objectives, select the type of ads, and set your budget. This includes specifying the duration, frequency, and overall ad spend to ensure your campaign parameters align with your marketing goals.

Step 3. Choose Your Target Audience

Utilize Netflix’s targeting options to specify the demographics, interests, and behaviors of your ideal audience. This step is crucial for ensuring your ads reach the most relevant viewers, thereby maximizing engagement and effectiveness.

Step 4. Upload Your Video

Prepare and upload your ad creatives in the specified format, ensuring they meet Netflix’s technical requirements. Netflix supports various ad formats, allowing for flexibility in how you present your content.

Step 5. Measure Your Performance

Use the real-time analysis tools provided by Netflix Ad Manager to track the performance of your ads. Detailed metrics and reporting features help you adjust your strategy based on insights and data to optimize your results continuously.

How Are Netflix Ads Shown?

Netflix ads are displayed a few times per hour, often during natural plot breaks to provide a seamless viewing experience. You will see ads before and during select TV shows and movies, with some new releases only featuring ads before they begin.

Ad breaks are indicated on the progress bar, and during playback, the number of ads in the break is shown in the upper-right corner, with fast forward and skip options disabled while ads are playing.

Keep in mind, that not all CTV platforms are eligible for the ad-supported subscription

How Are Netflix Ads Selected?

Netflix selects ads based on users’ interactions with the platform, such as the genres they watch and their general location, like city and state.

Additionally, unless users have opted out, ads may be tailored based on their behavior across third-party apps or websites. If users opt out of behavioral ads, they will still see ads, but these will not be customized using external behavioral data.

Netflix Advertising Costs, Explained

The cost of advertising on Netflix varies based on several factors, making it essential for advertisers to understand these variables to budget effectively. Key cost drivers include:

  • Ad Format: Different ad formats have varying costs depending on their complexity and viewer engagement.
  • Target Audience: The more specific and niche the target audience, the higher the cost due to increased precision and demand.
  • Seasonality: Advertising costs can fluctuate with seasonal demand, often increasing during peak viewing times like holidays.
  • Campaign Length and Frequency: Longer and more frequent campaigns typically incur higher costs but may offer better reach and impact.
  • Geographical Targeting: Ads targeted to specific regions or cities can cost more due to the focused reach and potential market size.

Related: How Much Does It Cost to Make a Commercial?

Netflix Ads Best Practices

To maximize the effectiveness of your Netflix advertising campaigns, follow these best practices and strategies:

  • Leverage Precision Targeting: Utilize Netflix’s advanced targeting options to ensure your ads reach the most relevant audience segments.
  • Create High-Quality Content: Develop engaging, high-quality ads that align with the premium content environment of Netflix.
  • Optimize Ad Placement: Take advantage of Netflix’s natural plot breaks to ensure ads are less intrusive and more viewer-friendly.
  • Monitor and Adjust Campaigns: Use Netflix Ad Manager’s real-time analytics to continuously monitor performance and make necessary adjustments.
  • Test Different Formats: Experiment with various ad formats to determine which ones resonate best with your target audience.
  • Focus on Storytelling: Craft compelling narratives in your ads to capture and maintain viewer attention.
  • Respect Viewer Experience: Aim for a balance between brand messaging and maintaining a positive viewer experience to avoid ad fatigue.

Advertising on Netflix: Final Thoughts

Netflix advertising in 2024 presents a valuable opportunity for marketers to reach a highly engaged audience within a premium content environment. By leveraging the advanced targeting, creative flexibility, and comprehensive analytics offered by the Netflix Ad Manager, advertisers can optimize their campaigns for maximum impact.

Did you find this article helpful? Give it a share!

News Via Inbox

Get our monthly report on all the latest and greatest trends in digital marketing.