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Netflix announced on Wednesday at its Upfronts presentation the launch of its own advertising technology platform.
This move, coming just a year and a half after introducing ads, positions Netflix as a competitor to major players like Google, Amazon, and Comcast in the ad-serving space.
The decision marks a significant shift in Netflix's advertising strategy. Initially partnering with Microsoft to develop its ad tech, Netflix has now opted to bring it in-house, aiming to take full control of its advertising future and deliver more personalized experiences to its 270 million subscribers.
Amy Reinhard, Netflix's president of advertising, emphasized the company's commitment to providing a "phenomenal experience" for both members and brands, stating: "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."
While specific details on how this in-house solution will impact ad delivery remain undisclosed, reports suggest Netflix is keen to experiment with "episodic" campaigns, which involve a series of interconnected ads, rather than repetitive ones.
The company also announced plans to expand its buying capabilities this summer, adding The Trade Desk, Google's Display & Video 360, and Magnite as partners.
This move aligns with competitor Disney+, which also has an advertising agreement with The Trade Desk.
Additionally, Netflix highlighted the success of its ad-supported tier, which has grown to 40 million global monthly active users from around 5 million users within six months of launching.
This development marks a new chapter in Netflix's advertising journey, as the company seeks to leverage its technology and massive user base to create innovative and personalized ad experiences.
