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NEW YORK — Netflix for years has referenced a “crawl, walk, run” roadmap for building out its advertising business, setting expectations that a full-fledged offering wouldn’t arise overnight. At its upfront pitch to brands and agencies Wednesday (May 14) — hosted a year after the streamer shifted to in-housing its ad tech — executives ditched the familiar analogy for a different one: Netflix is a race car pulling out of the pit lane and stepping on the gas.
“If you take anything away from today, I hope it’s this: The foundation of our ads business is in place, and going forward, the pace of progress is going to be even faster,” said Amy Reinhard, who was appointed Netflix’s president of advertising 18 months ago.
New perks coming to Netflix’s ad suite include third-party data pacts with Experian and Acxiom, Reinhard shared, broadening an extensive partner network. In addition, Netflix is developing its own clean room strategy to aid advertisers in areas like activation and measurement while preserving user privacy. Netflix is also working on more ways to conduct programmatic buying and expanding its first-party measurement tools, including through a brand lift capability solution.
During a prerecorded video featuring Lily Collins, in character as PR maven Emily Cooper, from “Emily in Paris,” the actor noted that Netflix advertisers can now target consumers based on 100 interests spanning more than 17 categories, including life stages.
“The ad suite also has lots of new ways to use data,” said Collins-as-Cooper. “For example, if you already know who your customers are, you can BYOD — bring your own data — either through partners or directly through Netflix.”
Netflix is also experimenting with more diverse ad formats, with a focus on personalization for viewers and a “modular framework” that allows for greater brand customization. Generative AI will be used to match ads to content the user is watching, swapping in different imagery, such as elements from “Squid Game,” into the background against which the commercial plays. Interactive mid-roll and pause ads that are in development will include overlays, calls to action and second-screen buttons, such as QR codes that can be scanned to make a purchase or learn more about a product, though they won’t be widely available for months.