Netflix is known for its ad-free streaming experience, but that might soon change for some subscribers. According to reports from FT.com, the streaming giant has been in talks with prominent ad executives to explore new ways to deliver targeted advertisements. The discussions took place at this year’s Cannes Lions festival in the picturesque South of France. It seems that Netflix is considering adopting an “episodic” approach to advertising. Instead of bombarding viewers with repetitive ads, campaigns could be divided into multiple episodes. Netflix would keep track of which episodes viewers have already seen and deliver the next one when it’s time for another ad.
The ads would be tailored to the genre being watched by the user
This innovation would address a common complaint among viewers who often find themselves watching the same ad repeatedly across different streaming services. With episodic ads, the monotony would be broken (just a little bit), offering a more engaging and dynamic experience.
Furthermore, these ads could be specifically tailored to certain shows. If you’re watching a popular Netflix movie or show, say, Bojack Horseman, you might encounter the episodic ads during breaks, but they wouldn’t appear during a different genre such as a gritty thriller series. This approach aligns with traditional broadcasting, where ads are strategically placed to target specific audiences. However, online platforms like Netflix have the advantage of more precise targeting, ensuring that advertisers reach their intended audience effectively.
The prospect of episodic ads has garnered excitement among advertising professionals. The ability to track viewers’ ad exposure allows advertisers to craft a series of ads and guarantee that viewers see them in the desired order. This level of targeting offers endless possibilities for creative storytelling within the advertising sector.
Advertising is now becoming an increasingly important revenue stream for the company. In fact, according to an advertising boss quoted by FT, Netflix is now generating more revenue per user from its ad-supported tier than from the standard subscription tier. This indicates a shift in the company’s revenue model and emphasizes the significance of targeted advertising.
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(Via)
