Streaming

All we know about Netflix’s ad plans so far

The details include around four minutes of ads per hour, a premium price point, and a possible November launch date.
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Francis Scialabba

· less than 3 min read

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Ahead of the holiday weekend, it’s been a nonstop week of news about the world’s largest streaming service.

Let’s review:

  • Netflix is considering charging consumers between $7 and $9 per month for its forthcoming ad-supported tier, according to Bloomberg.
  • Also according to Bloomberg, that tier would have about four minutes of ads per hour. That’s on par with the ad loads promised by rival streamers HBO Max and discovery+, but far lower than linear TV.
  • According to the Wall Street Journal, those ad breaks will include 15- and 30-second ads that run before and throughout some programming.
  • Netflix is offering rates of around $65 to reach 1,000 viewers, with the expectation of eventually raising CPMs to $80, according to the WSJ, which would be far higher than the rates of competitors. The company is considering limiting total investment per brand to $20 million per year in an attempt to prevent ad frequency issues, the WSJ reported.
  • The ad-supported tier could arrive as soon as Nov. 1, per the WSJ, earlier than the 2023 rollout that the company had previously indicated.
  • By the end of this year, Netflix projects its ad-supported tier to have around 500,000 subscribers, according to Ad Age.

The flurry of reports helps provide a better picture of how Netflix is strategizing the rollout of its ad-supported tier after eschewing Madison Avenue for years.

There are still many unknowns, including what kind of metrics the service will provide to measure ad effectiveness. Even without all the details, media buyers are buzzing with anticipation.

Familiar faces: Earlier this summer, Netflix tapped Microsoft to help lead its advertising efforts. More recently, the streamer poached ad executives Jeremi Gorman and Peter Naylor from Snap to usher advertisers over to the service; Naylor brings with him streaming experience from a prior role at Hulu.—KS

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