Netflix has announced an expansion of its programmatic advertising offerings across the Europe, Middle East, and Africa (EMEA) region. This strategic move aims to provide marketers in these regions with sophisticated and scalable advertising solutions, marking a significant step in Netflix’s advertising strategy. This development signifies a notable shift in how Netflix engages with advertisers, offering enhanced tools and deeper insights into audience engagement while continuing to prioritize user experience and content quality.
Partnership Expansion and Integration
Netflix has extended its partnership with Google’s Display & Video 360 (DV360) and The Trade Desk to facilitate programmatic advertising in key European markets, such as the UK, Germany, France, Spain, and Italy. This expansion will soon follow in the Asia-Pacific region. Additionally, Netflix has integrated with Google’s Campaign Manager 360 and Innovid for impression verification, extending its existing fraud and viewability verification partnerships with DoubleVerify and Integral Ad Science into the EMEA programmatic channels. This multi-faceted collaboration ensures that advertisers have a diverse array of tools and services to maximize their ad performance.
Launching in the U.S. in August 2024, these programmatic tools are designed to provide advertisers with additional buying options. These include targeting audiences by genre, geography, and device, as well as placing ads against Netflix’s top 10 shows within a given region. Advertisers can also utilize standard pre-roll and various ad break formats within shows and films. This expanded programmatic capability demonstrates Netflix’s commitment to offering tailored solutions that meet advertisers’ specific needs, thereby enhancing the overall advertising ecosystem.
Strategic Importance and Market Response
Damien Bernet, Netflix’s EMEA ads vice-president, described this expansion as a “turning point” in Netflix’s programmatic journey. Reflecting on co-CEO Greg Peters’ remarks, Bernet highlighted that Netflix has moved from its initial phases to a more advanced stage of advertising development. These programmatic tools are designed to simplify the process for advertisers and scale Netflix’s advertising business, meeting the clear demand from advertisers for such capabilities. The market response has been overwhelmingly positive, signaling that advertisers are eager for the precision and efficiency Netflix’s new programmatic tools offer.
Netflix is also focused on fostering substantial partnerships with larger advertisers to give them exclusive access to top intellectual properties (IPs). Bernet emphasized that Netflix’s EMEA advertising team now boasts over 100 employees, adopting a localized approach tailored to the specific needs of different markets. By addressing the unique advertising demands in each market, Netflix is effectively broadening its appeal and setting the stage for sustainable growth. This tailored approach ensures that campaigns are more relevant, engaging, and effective, further solidifying Netflix’s reputation in the advertising domain.
First-Party Adtech Stack Development
The need for third-party collaborations arose partly due to Netflix’s hurried foray into advertising in response to declining subscription numbers in spring 2022. Currently, Netflix is also developing its first-party adtech stack. Launched in Canada in November, this in-house technology will start rolling out in the U.S. in April before reaching EMEA markets “soon,” according to Bernet. The innovation behind Netflix’s first-party adtech stack is driven by the desire to streamline the ad-buying process, enhance targeting capabilities, and reduce dependence on third-party services.
The primary aim of Netflix’s first-party adtech stack is to create a compelling offer that streamlines the buying process, driving faster innovation without third-party reliance. The anticipated advantages of Netflix’s first-party data include enhanced targeting capabilities and personalized advertising opportunities. By leveraging its vast reservoir of first-party data, Netflix can offer advertisers unprecedented insights and targeting precision, which is expected to lead to more effective and engaging ad campaigns. This innovation positions Netflix as a forward-thinking leader in the advertising space and creates a model for others to follow.
Revenue Growth and Advertiser Interest
Netflix’s ambitions for its advertising sector are underscored by Peters’ assertion that the company surpassed its revenue target in Q4, doubling its ad revenue year-on-year. Netflix projects to double its ad revenue again by 2025. Bernet noted interest from both large traditional TV brands and newer digital companies, thanks to Netflix’s programmatic offerings. The unique combination of offering the benefits of TV advertising—such as a premium environment, large screen experience, low ad load, and premium content—and the advantages of digital advertising has made Netflix’s ad offerings highly appealing.
This unique combination is appealing to a diverse range of advertisers, driving larger campaigns and deeper partnerships. With a focus on creating immersive, high-quality ad experiences, Netflix is attracting a broad spectrum of advertisers looking to maximize their reach and impact. The programmatic expansion and the development of first-party adtech tools demonstrate Netflix’s commitment to meeting advertiser needs while continuing to provide an unparalleled user experience for its viewers. This balanced approach ensures that Netflix remains a leader in both content creation and innovative advertising solutions.
Audience Measurement and Market Feedback
Netflix has unveiled an expansion of its programmatic advertising offerings throughout Europe, the Middle East, and Africa (EMEA). This strategic initiative aims to deliver sophisticated and scalable advertising solutions to marketers across these regions, marking a pivotal progression in Netflix’s advertising strategy. With this expansion, Netflix is not just diversifying its revenue streams but also significantly transforming how it interacts with advertisers. The new programmatic advertising tools provide deeper insights into audience engagement while maintaining a staunch commitment to user experience and content quality. This development highlights Netflix’s dedication to evolving its platform in ways that benefit both advertisers and viewers, ensuring that content remains at the forefront while delivering targeted advertising. This approach balances advertising innovation with the core principles that have made Netflix a leader in streaming, enhancing its role in the digital advertising landscape in EMEA.
