The streaming world is not standing still, and Netflix is leading the way with its new advertising opportunities. The company is introducing unique sponsorships and the very first live sports event on the platform. This move marks a new era in online entertainment. Peter Naylor, Netflix's Vice President of Global Advertising Sales, unveiled these innovations during Advertising Week in New York.
Sponsorships and live sports
New connections are emerging between companies and viewers. Frito-Lay's Smartfood popcorn claims the title of the first title sponsor of "Love Is Blind." Additionally, Netflix will broadcast the Netflix Cup. This is a golf tournament featuring Formula 1 drivers and PGA golfers, with T-Mobile and Nespresso as proud sponsors. Naylor emphasized the added value of these advertising formats and explained that 80% of members with an ad-supported subscription watch for more than two consecutive hours. This presents an ideal opportunity for brands to stand out.
Introduction of new advertising opportunities
Netflix will also introduce a new binge-advertising format by the end of this year. This format will showcase brand advertisements lasting 30 or 60 seconds during a binge session of multiple episodes, followed by an episode without ads. This provides brands with a unique opportunity to be in the spotlight within consumer viewing behavior.
Additionally, Netflix is adding these new options to the existing Top 10 advertising format, where brands are visible alongside the most-watched shows. These ads are strategically placed in the Top 10 carousel, just below the "For You" and "Continue Watching" carousels.
Brands in the sports world
With the sponsorship of the Netflix Cup, brands are stepping into the world of live sports and reaching fans of both racing and golf. This integration into the broadcast promises to be 'natural and holistic,' without the standard 15- and 30-second commercials.
For Nespresso, the sponsorship represents an opportunity to increase market penetration in the U.S. Jessica Padula, Nespresso’s vice president of marketing and interim vice president for sustainability, sees this as a chance to make a bold statement.
The future of Netflix's advertising strategy