Netflix is strengthening its ties with ad tech, forming new partnerships to improve advertisers’ measurement capabilities on its platform. By collaborating with providers of clean rooms, such as Snowflake, LiveRamp, and InfoSum, Netflix hopes to establish a more private and secure atmosphere. Netflix is delving deeper into its advertising operations. The partnerships will enable advertisers on Netflix to ascertain last-touch attribution, audience overlap, and post-campaign frequency and reach in a safe setting. Partners can now access Snowflake Data Clean Rooms, and in the upcoming months, InfoSum and LiveRamp’s technology will be made available.
The largest streaming platform in the world, InfoSum, a clean room technology company, and Snowflake, a cloud data platform, have partnered with LiveRamo, a data broker. Snowflake has been working hard to expand its ads platform. Through these partnerships, advertisers will have access to clean rooms—a relatively new privacy technology that enables cross-platform data sharing.
Netflix closed deals with all major holding companies and independent agencies for Netflix’s second year of upfront negotiations. These deals included commitments to increase upfront ad sales by at least 150% by 2023. Investments in all major categories, including CPG, Tech & Entertainment, Auto, QSR, and Retail, are included in the upfront commitments.
Fundamentals: To increase revenue and subscriber base, Netflix executives have been transparent about their efforts to expand their advertising business. In its Q2 earnings report, Netflix reported 278 million member households and $9.6 billion in revenue from subscription fees and ad revenue for the quarter that ended June 30.
Since launching its advertising business in 2022, the platform has gradually expanded, choosing Microsoft to handle all technical and sales aspects of the company at first. The Wall Street Journal said that the two revised their cooperation a year later in order to reduce the cost of advertising. Since then, Netflix has expanded its programmatic offerings by entering into agreements with some of the biggest ad-tech firms, such as Google, Magnite, and The Trade Desk. By 2025, Netflix plans to launch its own internal ad server.
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The diversity and caliber of its programming, along with its highly engaged audience, excite advertising clients. Netflix secured multiple international on-screen title sponsors, including L’Oreal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois, and Hilton, for Season 3 of Bridgerton, our sixth most popular English-language TV series ever.
The recently disclosed collaborations should provide advertisers with additional digital tools and new avenues for audience outreach. Nevertheless, the platform’s sluggish progress in expanding the size of its ad-supported tier has angered some ad buyers. Some of the most vociferous supporters of the ad tier have also left the company: Netflix’s vice president of global advertising sales, Peter Naylor, left the company last month.
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