How Netflix reached 70 million active users with its ad-supported model

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Recent titles like Nobody Wants This, The Diplomat, Love is Blind Habibi, and Monsters: The Erik and Lyle Menendez Story have brought millions of viewers back to Netflix, generating widespread conversation and fandom. Live events have also captured attention—specifically the highly anticipated Jake Paul vs. Mike Tyson boxing match.

New client partnerships: A game-changer for advertisers

Netflix’s advertising growth has been bolstered by new, high-profile partnerships, with a standout deal being the NFL’s live Christmas Day games. Netflix sold out all available in-game inventory for two live games, partnering with major advertisers like FanDuel and Verizon. FanDuel will be the exclusive pregame sportsbook betting partner, while Verizon will sponsor the Netflix Christmas kickoff segment. Traditional ad commercials will also run throughout the event, ensuring a robust advertising experience.

For Squid Game's upcoming season, Netflix has partnered with multiple advertisers in its 12 ad-supported countries. A key partnership with Kia in Korea will see the brand sponsoring the show’s launch with a custom three-part ad campaign timed to the debut of Kia’s The New Sportage SUV. This marks the first single-title sponsorship for Netflix in Korea.

Revolutionising advertising measurement

As Netflix continues to grow its ad-supported subscriber base, measuring the effectiveness of these ads has become critical. The company is already seeing impressive results in campaigns across various categories. In the US, an auto advertiser saw a surge in engagement—3.2 times higher than on other connected TV services—after running their campaign on Netflix. Additionally, a beauty brand in Mexico reported a +30 point increase in brand recognition following their campaign.

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To enhance its measurement capabilities, Netflix has partnered with VideoAmp to deliver cross-screen and live viewership metrics starting with WWE's launch in January. The collaboration will offer unparalleled privacy and security through VideoAmp’s Snowflake clean room partnership. Netflix has also partnered with Nielsen to provide live ratings for its NFL Christmas Day games, ensuring accuracy with first-party streaming data.

Expanding reach with in-house tech

Canada is the first market to exclusively operate on Netflix’s in-house advertising technology. This move offers advertisers greater flexibility and control over their buys, with Netflix continuing to develop its tech to include improved forecasting, targeting, and reporting. This in-house ad tech will be rolled out globally by 2025, with further advancements coming in the areas of measurement and insights.

Programmatic advertising: The next frontier

Netflix is also expanding its programmatic advertising offering, launched in August, which now includes programmatic guaranteed buying in the US, Brazil, Canada, and Mexico. This offering will soon be available in Europe in February 2025, followed by Australia, Japan, and Korea later in the year. Netflix is now able to support a wider variety of campaign objectives, working with new partners like Lucid, Cuebiq, NCS, and Affinity to deliver advanced targeting and measurement.

With a combination of strategic partnerships, cutting-edge measurement tools, and a growing suite of in-house advertising tech, Netflix is positioning itself as a powerful force in the advertising world. The company’s efforts are helping brands connect with viewers in new and engaging ways, driving value for advertisers while continuing to enhance the experience for subscribers. As Netflix expands its ad offerings globally, it’s clear that the platform’s advertising future is set for continued growth and innovation.