Netflix has stolen the show this week with its slew of announcements, including its 150 per cent year-on-year rise in upfront ad sales commitments, new brand and measurement partnerships, access to private marketplace buys, rollout of new programmatic campaigns, as well as clean room partnerships.
It didn’t take long for the market to react. The elation of advertisers and marketers around the globe had an immediate impact as Netflix ($NFLX) stocks rose to an all-time high, breaking records by soaring part $710 per share, before correcting below $697 at the close.
This came after the subscription-based video-on-demand (VoD) over-the-top (OTT) streaming service revealed that marketers can now set up 1:1 marketplace deals directly with Netflix through The Trade Desk, Google’s Display and Video 360 (DV360), or Xandr.
Although the programmatic private marketplace buys are currently limited to certain geographies in North America and South America, including the US, Canada, Brazil, and Mexico, the on-demand streaming service said that it would extend the opportunity globally in the coming months.
Netflix also revealed that it’s been executing multiple programmatic campaigns with advertisers, before adding that it is looking into including programmatic guarantee –the security of knowing that ad space is reserved at agreed-upon terms, which helps in budget planning and campaign assurance – by November 2024.
Beyond the Netflix brouhaha
So what has marketers and advertisers in the Middle East, and around the globe, so excited?
Turns out, that access to private 1:1 marketplace deals directly with Netflix through programmatic platforms, enables marketers can now secure premium inventory, while simultaneously ensuring that their ads are placed in high-quality, brand-safe environments. The ability to buy directly also offers marketers the opportunity to negotiate deals better, receive personalised campaign support, and enhanced targeting capabilities.
“Netflix’s decision to allow marketers to make private marketplace deals through platforms like The Trade Desk and Google’s Display & Video 360 is a smart and strategic move. By entering the programmatic ad space, Netflix is simplifying how advertisers can access and buy ad space. This change makes it easier for marketers to reach their target audience with precision, due to enhanced targeting and efficient tools provided by these platforms,” explained Marwa Kaabour, Group Head of Marketing and Corporate Communications, Al Masaood.
Vibhav Gaur, Vice President – Media & Digital Analytics, RAKBANK, said, “This is a game changer for brands looking to reach a highly engaged audience. The ability to engage in private marketplace deals with Netflix through platforms like The Trade Desk and Google’s DV360 is also a major advancement for banks like RAKBANK.”
Mitin Chakraborty, Head of Marketing, Babyshop at Landmark Group, said, “This is exciting news for marketers. Netflix’s move to allow private marketplace deals opens up new possibilities, but it will be important to understand their subscriber base and how many of those users will be open to the ad inventory.”
Enhancing verification, combating ad fraud, maximising ROI
In its latest missive, Netflix also announced its integration with Google’s Campaign Manager 360 and Innovid for impression verification, while extending its existing relationship with DoubleVerify and Integral Ad Science for fraud and viewability verification into programmatic channels.
This not only means that marketers can trust the integrity of their ad placements, but the extension of robust verification mechanisms also means that marketers are safeguarded against ad fraud, improving the accuracy of impression tracking, and enhancing overall campaign transparency. This is crucial to maintain trust and optimise ad spend.
RAKBANK’s Gaur said, “This move allows us to access Netflix’s vast, premium audience in a secure, programmatic environment. The introduction of advanced tools for campaign measurement and ad verification, along with privacy-safe solutions, ensures that our ads are not only effective but also maintain the highest standards of integrity and compliance. This aligns perfectly with our goals of maximising ROI and reaching diverse markets with precision. I’m eagerly awaiting this to be launched in the UAE.”
The success of Netflix’s programmatic campaigns with several global brands such as Expedia, Ford, T-Mobile, Mercedes-Benz, and Novartis, among others is a demonstration of the effectiveness of its programmatic advertising solutions, building confidence among potential advertisers.
Landmark Group’s Mitin Chakraborty, said, “A key area to watch is how well Netflix can deliver on measuring campaign performance and understanding audience behavior. With new tools and partnerships in place, this could help brands create more effective campaigns. Overall, this development has the potential to change how we think about advertising in the streaming space.”
Better pricing, advanced tools, more creative solutions
Clearly, marketers operating in the Americas will have the opportunity to test these measures first, before they are rolled across the globe. The planned global expansion means that multinational advertisers can look forward to consistent and scalable advertising solutions across different markets, harmonising their global marketing strategies.
In the partnership space, Netflix also revealed clean room partnerships available from Snowflake, InfoSum, and LiveRamp, potentially opening up their Connected TV (CTV) inventory for retail media. Netflix will also be available in the Barb Audiences Advanced Campaign Hub and NielsenOne, Lucid Holdings, Inc., Kantar and Affinity Solutions, for planning and measurement.
Chakraborty, added, “It’ll also be interesting to see how Netflix’s programmatic approach fits alongside existing regional players and other platforms. As Connected TV continues to grow, Netflix could provide a fresh way for brands to reach audiences with high-quality content across formats. YouTube predominately turning performance-media led is throwing challenges on effectively driving branded content and longer format content, thus Netflix may be better suited overall.”
But this also means that it’s time for advertisers to boot up for increased competition, which could benefit brands through improved pricing, creativity, and engagements. By offering programmatic guarantees, Netflix also adds a layer of certainty to buying decisions, which is appealing to budget management while simultaneously providing marketers with advanced tools and global opportunities.
Al Masaood’s Marwa Kaabour concluded, “The competition for ad space is likely to heat up, which could drive better pricing and more innovative advertising solutions. As Netflix integrates programmatic guaranteed options in the future, advertisers can expect even more tailored and creative solutions that fit various budgets and strategies. This development provides businesses of all sizes with opportunities to boost their brand presence and engage audiences effectively.”
