Netflix Has Google & Amazon In Crosshairs With Ad Server Launch

Netflix has announced that it will be launching its own ad server and bringing its adtech in-house at its Upfronts presentation overnight.

The burgeoning ad-supported streamer plans to have its own in-house adtech platform up and running by the end of next year.

“Bringing our ad tech in-house will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” said Amy Reinhard, Netflix’s president of Advertising.

Previously, Netflix had partnered with Microsoft to develop its adtech solution, allowing it to enter the market faster than if it had gone it alone. However, by developing its own system, Netflix said that it will give advertisers ways to buy, new insights to leverage, and new ways to measure impact.

“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience. We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands,” added Reinhard.

In the coming months, Netflix will also expand its buying capabilities to include The Trade Desk, Google’s Display and Video 360 and Magnite, as well as Microsoft.

While Netflix’s initial launch left many underwhelmed — especially Initiative’s Melissa Fein, who described the launch as “flaccid” at last year’s Cannes in Cairns (grab your tickets for this year’s show before it’s too late!) — it seems that the streamer has been growing in importance.

During its Upfronts preso, Reinhard announced that Netflix’s ad-supported plan has more than 40 million global monthly active users — up from five million a year ago. Plus, more than 40 per cent of all signups in the ads countries now come from the ads plan.

Meanwhile, the company’s chief content officer, Bela Bajaria said that its audiences were far more engaged with its content than its rivals.

“Our audiences are highly engaged — and by engaged I mean that they are choosing to spend their time watching Netflix. That’s important because engagement is the key to success in streaming. When people watch our shows and movies, they get more value from Netflix, they stick around longer, and they’re more likely to recommend us to their friends. And this matters to all of you because you want to be where the audiences are, too,” she said.

Netflix said that Nielsen estimates that more than 70 per cent of its ad-supported members watch for more than 10 hours a month — which is 15 percentage points higher than the nearest competitor. Plus, Nielsen also found that Netflix subscribers pay even more attention three hours into watching than they do when they first start, making them around twice as likely to respond to an ad compared to other streaming services and linear TV.

Marian Lee, the streamer’s chief marketing officer, said that its shows’ ability to influence and permeate culture make it the most desirable platform for advertisers.

“It starts with wonderful stories that become unmissable moments for millions of fans,” Lee said. “But then it spreads across Netflix — where our trailers get billions of views — and across our social media channels, where we have a billion very active followers.”

It pointed to energy drink firm Celsius being the first presenting sponsor for the upcoming live Jake Paul vs. Mike Tyson event this July. Brand partners for the fight will have featured placements throughout the broadcast and customized branding inside the ring.

Here’s a look at the upcoming 2024 Netflix shows:

Returning Favorites

Arcane S2 – Award winning animated series
Cobra Kai S6 – Critics’ Choice award winning action comedy series
The Diplomat S2 – Golden Globe nominated drama series
Emily in Paris S4 – Emmy nominated romantic comedy-drama series
Heartstopper S3 – BAFTA nominated coming-of-age series
Mo S2 – Final season of award winning drama series
Outer Banks S4 – People’s Choice award winning drama series
Squid Game S2 – Emmy award winning Korean drama series
Sweet Tooth S3 – Final season of Emmy award winning family drama series
The Umbrella Academy S4 – Final season of Emmy nominated drama series
Unstable S2 – Comedy series starring Rob Lowe
Vikings Valhalla S3 – Historical drama series

New Prestige Dramas

American Primeval – Action-thriller western limited series directed by Pete Berg
Black Doves – Keira Knightley and Ben Whishaw star in spy thriller
Eric – Limited thriller series starring Emmy award winner Benedict Cumberbatch
KAOS – Greek mythology twisted drama starring Jeff Goldblum
The Madness – Conspiracy thriller starring Emmy award winner Colman Domingo
Monsters: The Lyle and Erik Menendez Story – Second installment of Ryan Murphy’s Monster anthology series
The Perfect Couple – Book adaptation of Elin Hilderbrand’s New York Times bestseller
Supacell – Superhero series written and directed by Andrew Onwubolu

New Comedy Series

A Classic Spy – Based on the 2020 documentary The Mole Agent, starring Ted Danson
The Decameron – Comedy series from creator and showrunner Kathleen Jordan
No Good Deed – Starring Emmy award-winning actors Lisa Kudrow and Ray Romano
Nobody Wants This – Romantic comedy starring Kristen Bell and Adam Brody
Running Point – Starring Kate Hudson

New Unscripted Series

AMERICA’S SWEETHEARTS: Dallas Cowboys Cheerleaders – New series about the most iconic franchise in cheerleading
Rhythm & Flow S2 – Hit music competition series returns with new hosts DJ Khaled, Ludacris and Latto

New Premium Documentaries

Homicide: Los Angeles – Docuseries from the mind of Law & Order creator Dick Wolf (preceded by Homicide: New York which premiered earlier this year)
Our Oceans – Produced by Freeborne Media, Wild Space Productions
Untitled K Pop doc series – Docuseries about the rigorous process of making a global music sensation

New Sports Series

Receiver – From the creators of Quarterback, the series follows pass-catchers during the NFL 2023-24 season
Untitled 2004 Red Sox Series – A look at the historic 2004 Red Sox season that culminated with one of the greatest comebacks in sports.

New Live Events

Jake Paul vs. Mike Tyson – Heavyweight boxing mega-event sanctioned as a professional fight

Select Upcoming Films

Atlas – Jennifer Lopez stars in the sci-fi action thriller
Back in Action – Jamie Foxx and Cameron Diaz star in this action comedy stars
Beverly Hills Cop: Axel F – Eddie Murphy returns to the iconic franchise
Carry-On – Taron Egerton and Jason Bateman star in this action thriller
Family Affair – Nicole Kidman and Zac Efron star in this romantic comedy
Hit Man – Glen Powell leads Richard Linklater’s steamy dark comedy
Hot Frosty – Lacey Chabert stars in this holiday rom-com
The Merry Gentleman – Chad Michael Murray stars in this holiday rom-com
The Piano Lesson – Film adaptation of the award-winning play starring Samuel L. Jackson and produced by Denzel Washington
Rez Ball – Coming-of-age sports drama produced by LeBron James
The Six Triple Eight – Tyler Perry writes, directs and produces the film based on an inspiring true story starring Kerry Washington
Woman of the Hour – Anna Kendrick’s directorial debut