OTT giant Netflix plans to introduce its own advertising technology platform, along with forging new partnerships with additional programmatic platforms and measurement providers.

Netflix Launching their Own Adserver

During its upfront presentation, Netflix sought to address any skepticism regarding its effectiveness as an advertising platform.

Since the introduction of ads on Netflix at the close of 2022, advertisers have expressed frustration over its slow rate of expansion. Additionally, there were concerns raised last year regarding the limited targeting and measurement capabilities.

Nevertheless, Netflix is determined to demonstrate that it offers the advertising purchasing and measurement options sought by advertisers.

During its upfront event on Wednesday, Netflix revealed that its ad-supported subscription now boasts 40 million monthly active users worldwide, marking a significant increase from 23 million in January. In light of this substantial growth, Netflix also outlined plans to introduce its own advertising technology platform, along with forging new partnerships with additional programmatic platforms and measurement providers.

Fully committed to advertising

Netflix has hinted at bringing its advertising technology in-house before, but unlike previous instances where details were scarce, Amy Reinhard, the company's advertising president, made it unequivocal: Netflix will introduce its own ad tech platform by next year.

The initial testing phase will commence in Canada this year, with plans to launch in the US by Q2 2025. The aim is for the platform to be globally accessible by the end of the following year.

Reinhard emphasized to buyers that Netflix aims to exert as much control over its advertising technology as it does over its streaming technology, with the intention of providing agencies greater control and transparency regarding their purchases.

In the interim, Netflix announced that The Trade Desk, Google's DV360, and Magnite will join Microsoft as the primary programmatic partners. Beginning this summer, Netflix will offer inventory through Magnite, accessible via The Trade Desk or DV360. (Presently, Netflix exclusively employs Microsoft for programmatic ad sales through private marketplace deals.)

Expanding its programmatic partners could indicate Netflix's efforts to reduce reliance on Microsoft while it develops its own ad tech platform.


Regarding ad measurement, Netflix disclosed new partnerships with iSpot and TVision, akin to the previously announced partnerships with Kantar, Cint, and NCSolutions last month. Additionally, Netflix collaborates with Nielsen, EDO, DoubleVerify, and Integral Ad Science

Achieving Success in Sports Programming

To underscore its expansion, Netflix presented statistics highlighting subscriber engagement and attention towards ads.

According to Netflix, over half of its ad-supported members consume more than 20 hours of content monthly, with over 70% watching at least 10 hours monthly. Content creators are actively seeking methods to extend viewing durations to enhance ad revenue.

Similar to numerous broadcasters, Netflix is exploring live events and sports as avenues to augment viewing hours, though livestreaming remains relatively new territory for the platform.

Netflix recently secured a three-year deal to livestream NFL games on Christmas Day. This addition to its live programming lineup follows Netflix's earlier announcement in January that it will become the exclusive home of WWE Raw starting in 2025.

However, the outcomes of ongoing negotiations with advertisers this week will ultimately determine whether Netflix can outshine its broadcaster competitors.