How to Advertise on Netflix

Netflix boasts the largest streaming audience worldwide. And thanks to the tech giant’s expansion into   ad-supported streaming, businesses now have the chance to engage these viewers directly during their favorite shows and movies. 

However, advertising on Netflix is not as straightforward as traditional digital ads. Getting it right requires a deep understanding of Netflix's ad-supported structure, targeting options, and placement guidelines to ensure campaigns resonate with the right audience. 

This article outlines the key steps and considerations for creating effective ads on Netflix, helping you navigate this premium OTT platform and make the most of its growing ad inventory.

Netflix and Ads: A Complicated History

Netflix's relationship with ads has been complicated, marked by a mix of resistance and eventual acceptance. For years, Netflix prided itself on being an ad-free streaming platform, setting it apart from competitors like Hulu. 

This stance aligned with its promise of uninterrupted entertainment and allowed Netflix to build a loyal customer base. However, as market competition intensified and subscriber growth slowed, Netflix, like other streaming platforms, introduced ad-supported plans as a lower cost to diversify revenue streams and appeal to more households.

The decision to incorporate ads was met with mixed reactions. Some praised the affordability of ad-supported tiers, while others criticized it as a departure from Netflix's core identity. Additionally, concerns over ad frequency, targeting practices, and disruptions to the viewing experience led to debates among customers. 

While Netflix is continuing to work through this transition by bringing its ad-tech in-house and producing more ad-friendly content, it’s clear that ad-supported streaming is here to stay. 

Take it from our EVP of Sales and Marketing, Rachel Dillon:

Benefits of Advertising on Netflix

With its unique blend of premium content and targeted advertising opportunities, Netflix offers a range of benefits that make it a compelling choice for brands looking to connect with engaged audiences.

Massive, Engaged Audience

Netflix is the largest streaming platform, boasting more than 282 million subscribers worldwide. What’s more, its ad-supported plan reaches 70 million monthly active users, clearly signaling that consumers have embraced this new option.

With the introduction of ad-supported plans, advertisers can now reach a highly engaged audience during their favorite shows and movies. The platform offers unparalleled access to premium content viewers, ensuring your brand message reaches attentive, motivated audiences.

Premium Ad Placement

Netflix ads are carefully integrated into its content ecosystem, appearing in pre-roll, mid-roll, or live streams. Unlike cluttered digital environments, Netflix’s ad experience is curated to maintain a high-quality, immersive feel. This premium placement aligns your brand with Netflix’s reputation for exceptional content, increasing viewer trust and brand recall.

Global Reach with Localized Options

With its global footprint, Netflix allows advertisers to target audiences across multiple regions while offering localized ad options. This flexibility enables brands to run campaigns tailored to specific markets, enhancing relevance and resonance with viewers.

Cost-Effective Brand Exposure

Ad-supported Netflix plans make high-quality advertising accessible to a wide range of brands. With various ad formats and flexible durations, businesses can design campaigns that fit their budgets while achieving strong returns on investment.

QR Code Integration

Netflix allows QR codes in ads, enabling brands to drive direct engagement. Viewers can scan codes to access promotions, landing pages, or additional product information, seamlessly bridging the gap between viewing and action.

Limitations of Advertising on Netflix

It’s not all sunshine and fairy dust. After running beta campaigns in the platform, Strategus Co-Founder Joel Cox noted that Netflix is still in the early stages of implementing connected TV (CTV) ad experiences that take full advantage of programmatic technology.

“Netflix’s ad offering feels, well… old-school. Instead of the advanced, data-rich targeting digital advertisers expect, Netflix organizes its ad inventory by broad genre categories like sports, horror, or drama. Think linear TV — brands reach audiences based on content type but miss out on precise, data-driven audience insights,” Joel explains.

“Measurement is also still a work in progress. Advertisers hoping to track every click, conversion, or ROI won’t find much luck here. Unlike platforms with attribution that links ad exposure to sales, Netflix’s ads are better suited for brand awareness than direct conversions.”

How Do Brands Know if Netflix Is a Good Fit?

Based on our findings, Netflix is better suited for building brand awareness than for more conversion-focused campaigns. Here’s a breakdown of why:

1. Broad Reach, But Minimal Precision: Netflix’s genre-based targeting casts a wide net but misses the granular data advertisers crave.
2. Strong Brand Alignment: Brands looking for cultural relevance can benefit from Netflix’s cachet, especially if they value being associated with iconic shows.
3. Lacks Direct Performance Metrics: If conversions and ROI tracking are critical to your campaign, Netflix’s ad experience might feel too limited.
4. Still a Growing Platform: Netflix’s ad capabilities are evolving, so early adopters have a chance to secure a foothold as the platform matures.

Ad Buying Options on Netflix

When it comes to purchasing ad spots on Netflix, advertisers have three main options:

1. Direct Buying: Netflix Ads Manager, powered by Microsoft, allows you to directly purchase ad space on the platform. This method offers more control and flexibility, enabling you to choose specific shows or genres for your ads. However, direct buying doesn't allow you to serve ads on other OTT platforms simultaneously.
2. Programmatic Buying: This automated approach places ads based on your campaign objectives and target audience. Programmatic buying offers benefits like efficient budget management and targeted ad placement across multiple platforms. It's an excellent choice to streamline advertising efforts and reach specific demographics effectively.
3. Partnering With an Agency: Working with an advertising agency or managed services partner that specializes in CTV advertising can be beneficial, particularly if you lack extensive in-house marketing expertise. These partnerships bring valuable experience to the table and can potentially negotiate more favorable terms on your behalf. They can also help you navigate the complexities of Netflix advertising and optimize your campaigns for maximum impact.

Netflix Ad Specs and Creative Requirements

To ensure your ads align with Netflix’s standards and provide an exceptional viewer experience, it’s crucial to adhere to their detailed specifications and guidelines.

Ad Durations

Netflix supports several ad lengths, depending on the format:

• Pre-Roll and Mid-Roll Ads: 10, 15, 20, 30, 45, 60, or 75 seconds
• Live Ads: 15 or 30 seconds. For additional durations, consult with a Netflix account representative.

Video Specifications

• Formats: MP4 (H.264) and MOV (Apple ProRes)
• Resolutions:
  • 1920x1080 (Full HD)
  • 1280x720 (HD)
• Aspect Ratio: 16:9
• Bitrate:
  • H.264: Minimum 12 Mbps for 1080p; 8 Mbps for 720p
  • ProRes: Minimum 80 Mbps for 1080p; 42 Mbps for 720p
• Frame Rate: 23.976, 24, 25, 29.97, or 30 FPS

Audio Specifications

• Codec: PCM (preferred) or AAC-LC
• Channels: Stereo (2-channel)
• Sample Rate: 48 kHz
• Compliance: Must meet CALM Act standards for loudness.

Other Creative Considerations

• Safe Zones: Important content (e.g., text, logos) should be positioned within an inner rectangle to avoid being cropped by overscan settings.
• QR Codes: Allowed for added viewer interaction, such as promotions or additional information.
• Approval Timeline: Ads typically require 48 hours for approval; restricted categories may take longer.

Maintaining these specifications ensures your ad complements Netflix’s premium viewing experience and effectively engages its audience.

Targeting Capabilities on Netflix

Netflix offers a range of audience targeting options to help you reach the right viewers with your ads. These targeting capabilities are based on factors such as:

• Demographics: You can target ads based on age, gender, and location (country or state level in the U.S.).
• Viewing Habits: Netflix allows you to target viewers based on the genres they watch, ensuring your ads are shown to audiences with relevant interests.
• Content Context: You can place ads before or after shows and movies on Netflix's daily Top 10 list, guaranteeing high visibility and reaching viewers when they're most engaged.

Netflix also provides custom exclusion options, allowing you to avoid showing ads on programs with mature themes or content that may not align with your brand values.

By leveraging these targeting capabilities, you can create highly relevant ad campaigns that resonate with your desired audience and maximize the impact of your advertising spend on Netflix.

How Does Netflix Advertising Work?

Netflix integrates ads into the streaming experience at predetermined intervals. These ads can appear before, during, or after the TV shows and movies you watch.

When an ad break is approaching, viewers see it signaled on the progress bar as a heads-up that commercials are coming. During these ad breaks, the fast-forward and skip functions are disabled, ensuring that viewers watch the ads in their entirety.

The ads are served based on a combination of factors, including viewing preferences, location, and even external data (unless that household opted out of this type of targeting). This personalized approach aims to show ads that are more likely to be relevant and engaging to each individual viewer.

By carefully placing ads at natural breaks in the content and using data-driven targeting, Netflix aims to make the ad experience as unobtrusive and relevant as possible for the viewer.

How to Get Started with Netflix Advertising

Now that we’ve set a solid foundation of what Netflix advertising entails, let's dive into the steps you can take to get started with your own campaigns.

Create a Netflix Ad Manager Account

The first step is to set up your Netflix Ad Manager account. This platform, powered by Microsoft, allows you to directly purchase ad space on Netflix. To create an account, simply visit the Netflix Ad Manager website and follow the registration process.

Define Your Campaign Goals and Budget

Before you start creating your ads, it's important to clearly define your campaign goals. Are you looking to increase brand awareness, drive website traffic, or promote a specific product or service? Having a clear objective will help guide your ad creative and targeting decisions.

Next, determine your advertising budget. Netflix offers flexible spending options, but it's essential to set a budget that aligns with your goals and overall marketing strategy.

Craft Your Ad Creative

With your goals and budget in mind, it's time to develop your ad creative. Remember to adhere to Netflix's ad specifications and creative guidelines to ensure your ads meet the platform's standards.

Focus on creating engaging, high-quality video content that captures viewers' attention and effectively communicates your message. Consider leveraging storytelling techniques and strong visuals to make your ads stand out.

Set Up Audience Targeting

Netflix offers a handful of audience targeting options to help you reach the right viewers. Advertisers can create their audience using criteria like demographics, viewing habits, and content context..

Be strategic in your targeting approach, and consider using Netflix's exclusion options to avoid showing your ads on programs that may not be a good fit for your brand.

Launch and Monitor Your Campaign

Once your ad creative is finalized and your targeting is set, it's time to launch your Netflix advertising campaign. Keep a close eye on your campaign's performance using Netflix's analytics and reporting tools.

Regularly review metrics such as impressions, click-through rates, and viewer engagement to gauge the effectiveness of your ads. Use these insights to make data-driven optimizations and improve your results over time.

How Much Does it Cost to Advertise on Netflix?

The cost of advertising on Netflix varies based on your campaign's specific requirements, such as ad duration, targeting options, and placement. Generally, Netflix ads are priced using a cost-per-thousand-impressions (CPM) model. At launch, CPMs ranged from $65 to $80, but recent reports indicate rates have dropped to $39 to $45 CPM as the platform expands its ad offerings.

Netflix requires a minimum monthly spend of $15,000, which can increase depending on the complexity of your campaign and targeting preferences. For instance, premium placements, such as ads tied to hit shows or live events, may command higher CPMs.

That said, by working with a managed service partner like Strategus, advertisers are able to overcome some of these costs. Minimum fees, compounding costs of add-ons, and staff augmentation all add up when running Netflix campaigns in house. By instead choosing a managed solution, advertisers can bypass minimums thanks to a stronger negotiating position. Even better, at Strategus, we advise our clients to avoid costly advertising mistakes that reduce campaign effectiveness. 

Why Partner With Strategus for Advertising on Netflix?

Running effective campaigns on Netflix is no easy task. The ad-supported offering is still in its early days, which is why brands and agencies are better off partnering with a team of experts who knows the ins-and-outs of this dynamic platform.

At Strategus, we team up with brands and agencies to simplify CTV advertising and drive better performance. Our partner ecosystem integrates countless ad exchanges, SSPs, DSPs, publishers, and data providers to ensure precision targeting at scale. 

Our vendor-agnostic approach delivers flexibility in how we approach each campaign and the agility required to stay on the cutting edge. We also make it easy to conduct measurements across other streaming publishers and identify how your audience reacts, all without being beholden to one inventory source.

Finally, we handle everything for you: campaign setup, audience targeting, performance tracking, cross-device retargeting, and ongoing optimization. As a hands-on partner, we act as your Netflix advertising team, working behind the scenes to deliver results while you focus on your business goals.

Final Thoughts - Is Netflix Advertising Right for Your Brand?

Advertising on Netflix presents a unique opportunity for brands to connect with one of the largest and most engaged streaming audiences worldwide. However, Netflix’s ad platform operates differently from other video-on-demand (VOD) services, with its curated content, premium placements, and genre-based targeting requiring a strategic approach to maximize ROI. 

For businesses ready to align with iconic shows and tap into Netflix’s cultural influence, this platform can deliver exceptional brand visibility, but navigating its nuances effectively is key.

This is where Strategus comes in. With exclusive early access to Netflix’s ad inventory, we help businesses craft impactful campaigns that align with Netflix’s premium environment. Our team manages every detail, from targeting and placement to ongoing optimization, ensuring you get the most out of your investment. 

If you'd like to learn more about making Netflix ads work for your brand, we’re here to help. Contact us today to get started.