Netflix Ads in 2025: What Advertisers Need to Know Before Buying In

Struggling to find premium ad inventory that isn’t already saturated or overpriced?

Netflix’s growing ad tier gives brands a new way to reach highly engaged viewers, but it’s not built like other platforms.

This article breaks down what advertisers need to know before buying in.

What Netflix’s Ad Experience Looks Like in 2025

Netflix changed how we watch TV, but its ad strategy took time to catch up.

When it launched ads in 2022, Netflix partnered exclusively with Microsoft’s DSP. This guaranteed revenue but limited targeting and personalization, an odd choice for a brand known for innovation.

That changed in 2024.

After Amazon moved all Prime Video users to ad-supported plans, Netflix dropped the Microsoft deal and brought in new ad-tech partners like Google, The Trade Desk, and Magnite.

This opened the door for more advertisers and better tools, helping Netflix finally compete in the ad-supported streaming space.

Let’s be honest, Netflix still has a lot to figure out. It looks like they’re working on building their own ad tech to improve performance and take more control, but that won’t happen overnight.

For now, Netflix is partnering with other DSPs to give more advertisers access and learn how to manage ad-supported streaming better.

It’s an interesting shift, but it’s clear that Netflix is still in the early days of building an ad experience that matches its strong brand.

What Advertisers Should Know Before Buying Netflix Ads

Netflix ads offer high visibility, but the model comes with trade-offs. If you're considering investing, here’s what you should know before jumping in.

1. Targeting Is Still Genre-Based, Not Audience-Based

Unlike Meta or Google, Netflix doesn’t let you target users by behavior, intent, or demographics. You choose by content category (like sports, drama, or reality) similar to linear TV. There’s no first-party data access or audience segmentation.

In short, Netflix (the company that disrupted cable) is now using a model that feels a lot like traditional TV. It helps brands reach large, engaged audiences but lacks the precision most digital marketers expect.

So, expect reach, not precision.

2. Measurement Is Limited, No ROI Tracking Yet

Netflix does not yet support detailed attribution models or conversion tracking. You won’t get metrics like ROAS or cost per acquisition. The focus is on impressions, completion rates, and brand lift surveys, not conversions.

That means Netflix ads are better suited for brand awareness than performance-driven campaigns. If your KPI is direct sales, this isn’t the right platform—yet.

The point is, it's not built for performance marketers.

3. Ad Inventory Is Expanding, But Still Evolving

Netflix has opened up access to more advertisers by ending its Microsoft exclusivity and partnering with Google, The Trade Desk, and Magnite. But its own ad tech is still under construction.

This means you're buying into a maturing platform.

4. Creative Runs Alongside Premium, Safe Content

One of Netflix’s biggest advantages is context. Your ads run next to award-winning shows, not random user content or low-budget uploads. This premium environment enhances brand perception.

This makes it a strong fit for prestige brands or culturally aligned campaigns.

5. CPMs Are Competitive, For Now

Netflix’s current ad CPMs are reasonable compared to platforms like Hulu or YouTube Premium. As inventory fills up and targeting improves, those rates may rise.

So, early movers may lock in value.

Who Netflix Ads Are Right (and Wrong) For

Netflix isn’t a one-size-fits-all platform, and that’s critical to understand before you spend.

Its current model is built for reach and cultural alignment, not precision targeting or ROI tracking. Here’s a breakdown of the kinds of brands that stand to benefit—and who might want to hold off.

Netflix Ads are Best-Suited For

• Brands with large awareness budgets: Netflix excels at high-volume exposure across premium content, making it ideal for top-of-funnel campaigns.
• CPG, entertainment, luxury, and automotive brands: These verticals benefit from aligning with Netflix’s high-quality shows and culturally relevant content.
• Companies prioritizing cultural relevance over performance metrics: If your goal is to be seen alongside Stranger Things, Bridgerton, or Emily in Paris, this platform delivers.
• Advertisers seeking premium, brand-safe environments: Netflix offers controlled, ad-safe content with no user-generated chaos or content misalignment.

These are Better Off Without Netflix Advertisments:

• Direct-to-consumer (DTC) or ROI-focused brands: Without strong attribution or performance tracking, DTC brands will struggle to prove impact.
• SMBs with limited budgets: CPMs may be reasonable for enterprise advertisers, but smaller brands won’t get the targeting efficiency they need.
• Marketers reliant on granular targeting or retargeting: No behavioral, demographic, or first-party audience segments means you’re flying blind beyond content category.

The point is, Netflix ads work well when you're buying attention, not conversions.

If you want measurable performance, wait until the tech stack matures. But if you're building a prestige brand or launching a major awareness push, it’s worth testing now.

So, What’s Next for Netflix? 

As Netflix ramps up its ad game, it’s stepping into a fiercely competitive field. While Amazon’s ecosystem benefits from massive subscriber data, Netflix has something unique—cultural influence and a premium content library.

Netflix’s audience spends an average of over two hours per day streaming, making it one of the most engaged audiences in the world.

The real challenge? Building an ad platform that’s as innovative as Netflix’s content. Will they develop a DSP of their own or rely on DSP partners to bring the best ad tech?

Either way, Netflix’s approach to ads has the potential to shape the future of ad-supported streaming, blending high-quality content with evolving ad capabilities.

Why Advertisers Should Act Now

Netflix’s ad model isn’t built for conversions– yet. But it gives brands rare access to premium, culturally relevant content and one of the most engaged audiences in streaming. For advertisers focused on reach and brand alignment, now’s the time to get in early and lock in the advantage.

Want to test Netflix ads without wasting budget?

Strategus can help you build a smart, performance-informed campaign strategy tailored to Netflix’s strengths, so you get maximum brand impact with minimal guesswork.

Talk to us today and see how we can make streaming work for your brand.

Frequently Asked Questions

How to Advertise on Netflix?

To advertise on Netflix, brands must work with one of its approved partners like Google Display & Video 360, The Trade Desk, or Magnite. You'll select content categories, set budgets, and upload creatives. Ads appear during shows in the ad-supported tier. Netflix currently focuses on high-quality, brand-safe placements.

Did Netflix Increase Ads?

Yes, Netflix gradually increased ad load since launching its ad-supported plan in late 2022. It now runs about four to five minutes of ads per hour. This remains lower than traditional TV but higher than at launch, as the platform scales its monetization model.

Does Netflix Sponsor Anything?

Yes, Netflix occasionally sponsors events or collaborates with brands on cross-promotions. While not a traditional sponsor of sports or live events, Netflix has partnered with brands for limited-time campaigns tied to popular shows, merchandise, or themed experiences.

How Bad Are Netflix Ads?

Netflix ads are relatively minimal and non-intrusive compared to traditional TV. They appear at predictable breaks, usually pre-roll or mid-roll, and run for 15 to 30 seconds. Users generally accept them in exchange for lower subscription costs, but ad load perception varies.

How Do Ads Work on Netflix?

Ads are shown only to subscribers on the ad-supported tier. Brands buy placements through approved DSPs, targeting content genres instead of individual viewer profiles. Ads run pre-roll or mid-roll, with frequency limits and strict controls on content quality and duration.

How Might Promotional Tie-Ins Benefit Netflix Even if They Aren't Paid Advertisements?

Promotional tie-ins expand Netflix's cultural reach, drive buzz, and reinforce brand relevance. Even unpaid campaigns—like brand collabs or themed product launches—help keep shows top-of-mind. They create earned media, attract new viewers, and extend the shelf life of Netflix originals.

What Are the Benefits of Netflix's Ad-Supported Plan (For Advertisers)?

Advertisers get access to premium content environments, strong viewer attention, and low ad clutter. Netflix's brand-safe, high-quality inventory helps boost awareness. While targeting is limited, the platform offers prestige and scale—ideal for brands seeking cultural alignment and broad exposure.

What Do Netflix Ads Look Like?

Netflix ads are short video spots, typically 15 or 30 seconds, shown before or during shows in the ad-supported tier. They appear in full-screen, with high production quality and no skip option. Ads are tied to content genres like drama or comedy.

Why Does Netflix Have Ads?

Netflix added ads to offer a lower-cost subscription option and create a new revenue stream. With subscription growth slowing, ad-supported plans help attract price-sensitive users and open up monetization from advertisers without compromising core content quality.

How to Buy Ads on Netflix?

You buy ads on Netflix through DSP partners like Google DV360, The Trade Desk, or Magnite. Advertisers choose content genres to target and submit their creatives through these platforms. Netflix does not currently allow direct ad purchases without a DSP.