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- Netflix’s ads head said she’s most excited about “interactive and modular” formats.
- Netflix said its ad tier now reaches 190 million monthly active viewers globally, a new metric.
- It also shared a slew of new ways it’s growing the business, like targeting options and brand deals.
Netflix wants its ads to be as personal as its content recommendations.
“People expect a lot of innovative things to come out of Netflix, given what we’ve done over the past 25 years in the business,” Amy Reinhard, Netflix’s ads president, said on Wednesday. “The thing that I’m most excited about is these interactive and modular formats, because these are the start of our personalization journey, and they add a ton of flexibility and optionality into what we’re trying to do.”
Three years into Netflix’s ad efforts, Reinhard said she felt the streamer had made “great progress” addressing concerns it faced about the company’s scale, measurement, and innovation limitations.
Netflix has grown its ad tier and added a slew of measurement partners, and has started testing interactive video ads in the US and Canada this month, which Reinhard said would open up “a lot of new opportunities.”
She took questions from reporters as Netflix released a new figure that it says better reflects the reach of its advertising tier. With ad-supported tiers becoming the biggest drivers of growth on streaming services, Netflix said it reaches 190 million monthly active viewers (MAVs) around the world. It defined MAVs as members who have watched at least one minute of ads on the platform a month, multiplied by the estimated average number of people in a household.
Netflix previously arrived at its tier size based on the number of profiles watching ads, which it said doesn’t account for the communal nature of the viewing experience.
The new global figure is unlikely to shake up the way advertisers, who tend to buy by country, work with the platform. However, it could improve the platform’s perception in the eyes of advertisers and production partners, who generally clamor for more transparency.
Netflix launched its lower-cost ad tier in 2022 and has since expanded it to 12 countries, building out the offering with ad tech and partnerships. Netflix hasn’t disclosed its advertising revenue but has regularly said it’s pleased with the progress of business, reporting in its last earnings release that it’s on track to more than double its ad revenue in 2025.
In the press briefing, Netflix also ticked off other features it’s rolling out with advertisers in mind. They include experimenting with new ad formats like the interactive ads; expanding its targeting options to things like education, marital status, and household income; testing ways to localize ads in live content like sports; rolling out AI ad tools; and integrating brands like Fiat and Nestlé into its popular shows like “Stranger Things.”
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