Advertising on Netflix: What You Should Know

As of this year, cord-cutters, or those who don’t pay for cable or satellite TV, outnumber households that do have a linear TV subscription. The preference for a more diverse range of content, fewer commercials and no contracts has upended the traditional model of TV advertising, making CTV/OTT an integral part of a balanced media strategy for brands, not just a nice-to-have, to connect with target audiences. 

Streaming giant Netflix, one of the last holdouts for commercial-free streaming, entered the OTT advertising space in 2022 with an ad-supported membership option for budget-conscious viewers. Until recently, only select advertisers had access to its ad inventory. In March 2024, the streamer partnered with several prominent ad networks and demand-side platforms, expanding inventory and offering brands a new opportunity to engage with audiences.

Opportunity For Early Adopters

Nearly two years since its launch, the new subscription tier has amassed more than 40 million monthly active users globally, and over 70% watch more than 10 hours per month. Netflix also accounts for 7.3% of time spent with digital by US adults this year, behind only Meta and YouTube, with active US users projected to spend over an hour a day on average on the platform. 

Despite Netflix becoming a bigger and bigger part of consumers’ lives, according to eMarketer, the streaming giant makes up only 0.3% of total digital ad spending. That means early adopters who get in before the competition grows could enjoy a larger audience and lower CPMs.

How to Reach Netflix Subscribers

Netflix offers two ad options: pre-roll and mid-roll ads. Ads can be 10-75 seconds long, and viewers will see approximately four minutes of ads per hour of viewing, which they cannot fast-forward or skip through. Advertisers can target by content preferences and audience demographics, giving ample opportunity for personalized ad experiences that connect with viewers.

Add Some Tudum To Your Media Strategy

Whether your brand is just starting to explore CTV/OTT opportunities or is ready to add Netflix to an already healthy media spread, the paid media specialists at TriMark Digital offer expert management strategies to maximize your ad spend.

Contact your account manager or reach out to schedule an introductory call and explore the possibilities of streaming.