by Adam Ortman, SVP Growth & Innovation, Generator Media + Analytics

 

 

As streaming services continue to dominate the entertainment industry and with advertisers spending nearly $38B globally in 2022, brands are turning to platforms like Netflix to reach their target audiences.

 

 

However, advertising on Netflix is not the same as traditional television advertising, and there are a few key items that brands should consider in order to make the most of their investment. Let’s review these top considerations:

 

 

Audience targeting is key

 

 

One of the biggest benefits of advertising on Netflix is the ability to target specific audiences. Netflix has a wealth of data on its users, including their viewing habits, demographics, and even their search histories. This allows brands to create ads that are tailored to specific groups of viewers, rather than a broad audience. For example, a car company could create an ad that is only shown to viewers who have watched a lot of car-related content on Netflix. This kind of targeting can help brands reach their ideal audience and increase the chances of their ad resonating with viewers.

 

 

Netflix ads are not interruptive

 

 

Unlike traditional television advertising, which often interrupts the viewing experience, Netflix ads are designed to be less disruptive. This is because Netflix ads are shown before or after a user’s chosen content, rather than during it. Additionally, Netflix ads are skippable, meaning that users can choose to skip them if they don’t want to watch. This allows brands to reach viewers in a more subtle way, and it can help create a more positive association with the brand.

 

 

Measurement and analytics are limited

 

 

One of the downsides of advertising on Netflix is that measurement and analytics can be limited. Unlike traditional television advertising, which can be measured through Nielsen ratings, there is no standardized way to measure the effectiveness of Netflix ads. This can make it difficult for brands to know how well their ad is performing and to make adjustments as needed. Additionally, Netflix does not provide advertisers with detailed data on their ads, such as how many viewers watched the ad or how many clicked through to the brand’s website. This can make it difficult for brands to optimize their ads and to know if they are getting a good return on investment. Given this information, we are optimistic that this will change in the future.

 

In conclusion, advertising on Netflix can be a great way for brands to reach their target audiences and to build a positive association with the brand. However, brands need to be aware of the unique challenges of advertising on Netflix, including the importance of audience targeting, the lack of interruptive ads, and the limited measurement and analytics available. By understanding these key points, brands can create more effective and successful campaigns on Netflix and make the most of their investment.