It has now been confirmed that Netflix's new ad tier subscription plan will launch on 4th November in Australia, along with 11 other countries - US, Canada, UK, France, Spain, Germany, Italy, Brazil, Mexico, Japan and Korea.
Nothing changes for people on existing subscription models unless they decide to switch to the ad tier plan. Here is what viewers can expect on this plan:
Video quality of up to 720p/HD
4-5 minutes of ads per hour
Each ad will be 15 or 30 seconds in length
Ads will play before or during the show (i.e. pre-roll or mid-roll)
No download function
Some limitations on movie and TV show availability due to licensing restrictions
In addition to the above, here is what advertisers looking to run ads on Netflix need to know:
Targeting capabilities include basic demographic (i.e. age, gender), country, genre, and Netflix Top 10
Due to the shared nature of Netflix subscriptions, advertising will not be open to children's programming
Audience data will not be shared with advertisers to build profiles on any other service
Negative targeting can be applied based on certain criteria (e.g. sex, violence, nudity, gambling etc.)
Netflix have partnered with DoubleVerify and Integral Ad Science to verify viewability and traffic validity from Q1 2023
While the rates have yet to be disclosed, ads will be sold on a fixed rate, not auction
Ads will not be skippable at launch, but may change depending on the user experience and feedback
Contextual targeting in a premium and captive environment sounds ideal for brand building, and I have no doubt that many advertisers will be keen to trial Netflix ads. However, all of this hinges on the uptake of Netflix's ad tier subscription which will no doubt be monitored closely by advertisers. Netflix is paving the path for other streaming services with Disney already announcing a similar ad tier subscription plan.
This is an interesting moment in advertising and will shape our overall video advertising strategy across traditional broadcast, digital, BVOD, and now AVOD (Advertising-based Video on Demand).
Resources:
Comments