One year after releasing its ad-supported tier, Netflix gave a peek into how its ads biz is going.
On Wednesday, Netflix said its ad-supported offering now reaches 15 million monthly active users globally.
This demonstrates steady growth for its Standard with Ads plan, which has increased from roughly 10 million global subscribers in August and nearly 5 million in May.
Netflix declined to share a current subscriber breakdown by country, although numbers that leaked over the summer pegged the count at 1.5 million subscribers in the US at the time.
But despite the momentum, Netflix’s ad-supported subscriber growth is still slower than Disney’s. Nearly 50% of new Disney+ subscribers currently sign up with ads, compared with just 30% for Netflix.
But, hey, growth is growth.
And with that growth in mind, Netflix also shared details about new ad formats, some of which are available now and some of which advertisers can expect to roll out by the first quarter of next year.
All about ads
Starting now, advertisers can buy 10-, 20- and 60-second spots on Netflix. Previously, only 15- and 30-second spots were available.
And beginning early next year, Netflix will introduce the ability to include QR codes for ad creative running in the US. (So get ready to hear more talk about shoppable TV in the near future.)
Netflix also shared more details about the binge ads it announced during Advertising Week last month.
Binge ads are brand sponsorship deals that let viewers access an ad-free episode in exchange for watching a sponsored message. Subscribers must first watch three consecutive episodes of a show with ads, after which they’re given the option to watch one more ad in exchange for viewing the fourth episode of that show without ads. Binge ads will be available to buyers starting in Q1 2024.
Binge sessions aside, Netflix is making general title sponsorships available now to marketers in the US, with global availability coming next year. Title sponsorships are pre-roll ads with messaging such as “brought to you by [brand name].” Netflix debuted title sponsors with Frito-Lay’s Smartfood brand for the hit show “Love Is Blind” in October. The streamer expects to strike more sponsorship deals soon for other popular shows, including “Squid Game: The Challenge” and “The Crown.”
And later this month, national brands such as T-Mobile and Nespresso sponsor Netflix’s next attempt at live programming via “The Netflix Cup,” a golf tournament featuring popular athletes from other Netflix shows, such as “Full Swing.” The tournament livestreams on November 14.
Let’s hope it goes better than the last time.
