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 first-ever live sporting event on the platform. This move marks a new era in online entertainment. Peter Naylor, Netflix's vice president of global ad 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 premiere as title sponsor of "Love Is Blind." Furthermore, Netflix will broadcast the Netflix Cup. This is a golf competition between Formula One drivers and PGA golfers with T-Mobile and Nespresso as proud sponsors. Naylor emphasized the added value of these ad formats, explaining that 80% of members with ad-supported subscriptions watch more than two hours at a time. So an ideal time for brands to stand out.
Introducing new ad features
Netflix will also introduce a new binge ad format by the end of this year. This format will show brand advertising of 30 or 60 seconds during a binge session of multiple episodes, followed by an episode with no ads. This will give brands a unique opportunity to be in the spotlight within consumers' viewing habits.
Moreover, Netflix is adding these new features to its existing Top 10 ad format, where brands are visible on the most-watched shows. These are strategically placed in the Top 10 carousel, just below the "For You" and "Keep Watching" carousels.
Brands in the world of sports
By sponsoring the Netflix Cup, brands are taking a step 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 US. Jessica Padula, Nespresso's vice president of marketing and temporary vice president for sustainability, sees this as an opportunity to make a big statement.
The future of Netflix's ad strategy
These developments come just before Netflix's quarterly earnings announcement. The number of members with ad plans has nearly doubled. Revenue is not yet a significant portion of total revenue.
With Amy Reinhard heading the ad team, Netflix is taking steps toward a future in which ads play a central role in connecting brands with engaged viewers.
Source : Netflix