Netflix has just announced during its Upfronts presentation this Wednesday that it will be launching its very own advertising technology platform only a year and a half after entering the Ads business.
This move will make it rival other industry heavyweights like Google, Amazon, and Comcast.
This announcement pretty much means that there is something big going on between the streaming giants. The company originally partnered up with Microsoft to develop its ad tech, letting Netflix enter the ad space very quickly and catch up with the other forerunners in the field.
With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future. This strategic move will empower the company to create targeted and personalized ad experiences that resonate with its massive user base of 270 million subscribers.
Netflix hasn’t yet commented on how its in-house solution will change the way ads are delivered, but, it is more than likely that Netflix will be moving away from generic advertising.
According to the Financial Times, Netflix wants to experiment with “episodic” campaigns, which involve a series of ads that tell a story rather than delivering repetitive ads.
So, during its presentation, Netflix also stated that it would be expanding its buying capabilities this summer, which might now include The Trade Desk, Google’s Display and Video 360, and Magnite as partners.
Netflix has also boasted of the success of its ad-supported tier, reporting having over 40 million monthly active users opting for the plan. The ad tier had around 5 million users within six months of launching.
