Netflix Programmatic Advertising: What Brands Need to Know

Netflix's journey from ad-free sanctuary to advertising powerhouse isn't just another streaming story; it's a fundamental shift in how brands can reach audiences in the streaming era.

Just a few years back, Netflix was the ultimate commercial-free zone where viewers could escape the ad breaks dominating traditional TV. Fast forward to today, and the streaming giant has embraced advertising as a strategic growth engine, offering brands access to one of the most engaged audiences in entertainment.

With ad-supported memberships growing by 57 million in 2024, Netflix isn't just dipping its toes in advertising; It's creating an entirely new landscape for marketers. But here's the catch: Netflix's approach to ads doesn't quite match its revolutionary reputation... at least not yet.

In this article, we’ll break down Netflix's evolving ad platform, examine what makes it unique in the programmatic advertising ecosystem, and talk about what brands should consider before jumping in. Whether you're looking for premium content alignment or waiting for more sophisticated targeting options, understanding Netflix's position in the programmatic space is crucial before allocating your ad dollars to the streaming giant.

Key Takeaways

• Netflix’s ad-supported tier now reaches over 57 million subscribers, creating a premium, brand-safe environment for programmatic advertisers.
• Initial ad access was limited to Microsoft’s DSP, but Netflix is now expanding programmatic access and exploring its own ad tech stack.
• Netflix Ad Manager offers unique formats like Pause Ads, Title Sponsorships, and QR codes, with contextual and mood-based targeting.
• Current capabilities support brand lift, viewability, and outcomes tracking, with improvements in audience data and attribution expected soon.
• To succeed, brands should align creative with content genres, invest in testing ($50–75K), and layer in cross-device retargeting for full-funnel impact.
• Strategus helps brands navigate Netflix ads with end-to-end strategy, optimization, and measurable results. Speak to a Strategus expert today to scale smarter.
  
  

The Evolution of Netflix's Programmatic Infrastructure

Netflix's journey into programmatic advertising has been anything but conventional. When they introduced their ad-supported tier in November 2022, they made a surprising move for a tech innovator: they partnered exclusively with Microsoft's Demand Side Platform (DSP).

This decision had significant implications for programmatic buyers:

• Limited DSP Access: Advertisers could only purchase Netflix inventory through Microsoft, creating a walled garden that contradicted programmatic's open-access philosophy.
• Restricted Targeting Capabilities: The Microsoft partnership limited the sophisticated audience targeting that programmatic advertisers expect.
• Constrained Inventory Availability: Initial programmatic inventory was tightly controlled and limited.

After launching its ad-supported tier in late 2022, Netflix's exclusive partnership with Microsoft quickly showed signs of strain. The streaming giant opted for Microsoft's ad tech as a quick solution due to its lack of internal infrastructure and pressure to stabilize subscriber growth. 

But the limitations of this closed arrangement soon became obvious. Advertisers struggled with viewership guarantees, faced basic targeting capabilities, and expressed growing frustration with high CPMs paired with minimal flexibility.

Reports surfaced in early 2024 that Netflix was reconsidering its approach, with internal teams exploring whether to build or buy their own ad tech stack. Netflix executives acknowledged the need for better delivery, measurement, and transparency, pointing to a fundamental lack of control as the core issue. This pivot signaled Netflix's intention to move beyond relying on Microsoft once their contract expired — a pivot that did end up happening.

Netflix Ad Manager: Your Gateway to Netflix Advertising

Netflix Ad Manager has evolved from a basic platform into the company's central hub for brands eager to reach its growing ad-supported audience. Since debuting alongside Netflix's $7.99/month tier with ads, the Ad Manager has grown into a sophisticated system that carefully balances premium content quality with tools that deliver real results for advertisers.

Brands can now purchase Netflix inventory either directly or through vetted programmatic partners, giving them the perfect mix of flexibility and oversight. The streaming giant positions its platform as a premium, attention-grabbing environment, backing this claim with impressive numbers: 1.9x higher viewability than traditional TV and stronger purchase intent metrics across connected TV benchmarks. 

Netflix has thoughtfully designed its ad experience to be immersive, presenting ads in compact, high-impact groups that maintain the viewer experience people expect.

Here’s everything you need to know about the Ad Manager.

Ad Formats

The Netflix Ad Manager offers a range of thoughtfully designed ad formats that integrate naturally with content:

• Standard Video Ads are placed pre-roll or mid-roll during viewing sessions and are currently the most common. They offer strong recall and visibility, particularly for :30 and :15 placements.
• Pause Ads appear when viewers pause their content. These static, non-intrusive placements leverage viewer dwell time and deliver surprisingly strong engagement — 77% of viewers keep Pause Ads on-screen for 15 seconds or more.
• Single Title Sponsorships allow advertisers to sponsor specific shows with custom bumpers and exclusive placements. These premium formats are highly effective for brand association and event tie-ins.
• QR Code Integrations make performance actionable, inviting viewers to scan and interact with ads in real time.
• Live Event Ads are now offered for select live programming like NFL games or WWE broadcasts, allowing brands to participate in culturally relevant, real-time moments.

Precise Targeting

Netflix provides both traditional and highly specialized targeting layers to help advertisers connect with their ideal audience. Here’s how Netflix allows better targeting for advertisers.

• Top 10 & Genre Targeting allows brands to align with the most popular content or specific interest categories like Sports, Drama, or Travel.
• Title Selection enables advertisers to handpick specific shows that match their brand’s tone and audience.
• Audience Matching includes 1st-party CRM data onboarding as well as 3rd-party segments based on behavior and interests.
• Viewing Moods and Interest-Based Targeting bring emotional context into targeting, allowing advertisers to place messages when users are watching in specific emotional states, like nostalgia or thrill-seeking.
• Demographics, Geo, Device, and Language Targeting round out the core capabilities, giving advertisers comprehensive control over who sees their message, when, and on what device.

Netflix also offers brand safety tools, including title exclusions and sensitive content filters, ensuring ads appear in suitable environments.

Measurement & Reporting Capabilities

Netflix Ad Manager supports full-funnel reporting across three key measurement areas:

• Reach & Viewability: Advertisers can track who saw their ad, on what device, and verify it was viewed in a valid session. Tools ensure ad impressions are transparent and traffic is verified.
• Brand Lift: Measurement extends beyond awareness to include consideration and favorability, helping advertisers understand how campaigns shifted brand perception.
• Outcomes & Attribution: For performance-focused campaigns, advertisers can track ROAS, incremental sales, store visits, and other direct-response metrics. Netflix also partners with industry-standard measurement platforms to connect exposure with offline or online conversions.

Each of these insights can be accessed directly through Netflix or select programmatic partners. Availability of features may differ based on how inventory is purchased.

Netflix's Position in the Programmatic CTV Ecosystem

Curious to see how Netflix performs compared to other options in the market? Here's how it compares to other major players:

How to Get the Most From Your Netflix Programmatic Advertising Budget

Getting great results with Netflix Ad Manager isn't as simple as launching a campaign and watching the magic happen. Even with access to premium inventory and sophisticated tools, there's a world of difference between running ads and running successful ads.

The real challenges emerge in the details: crafting the right strategy, fine-tuning your targeting, managing campaign pacing, and creating ads that genuinely resonate with Netflix viewers. All the premium placement in the world won't save a campaign if these execution elements fall short, leaving you with wasted budget and disappointing performance.

This is exactly where Strategus comes into play. 

As a full-service, hands-on programmatic partner, we do more than just get your ads on Netflix; we build campaigns engineered for real-world results. Our approach enhances your Netflix investment through audience intelligence, cross-device retargeting capabilities, creative that adapts to viewer behavior, and reporting that shows what actually works. Our team handles everything from technical specifications to continuous optimization, freeing you from the headaches of campaign management.

Working with Strategus transforms Netflix from just another media channel into a strategic, measurable part of your marketing ecosystem. If you're ready to turn Netflix viewers into genuine business outcomes, we're here to help maximize every dollar of your streaming investment.

Speak to a Strategus expert today to learn more about how we can revolutionize your programmatic campaign.

The Future of Netflix Programmatic: What's Coming Next

Netflix's programmatic capabilities are evolving rapidly. Based on industry trends and Netflix's own statements, here's what advertisers can expect in the foreseeable future:

Near-Term Developments (6–12 months)

In the short term, Netflix is expected to open its inventory to a broader range of demand-side platforms (DSPs), reducing the friction advertisers have faced due to limited access. This move will make Netflix more competitive in the programmatic ecosystem and offer buyers more flexibility in how they purchase ads. 

Alongside this, advertisers can anticipate gradual improvements in audience targeting. Netflix is poised to introduce more refined segmentation based on viewer behavior and content engagement, offering brands better precision. Measurement and attribution tools will also become more robust, giving marketers greater visibility into ad performance across the funnel.

Medium-Term Evolution (1–2 years)

Looking ahead, Netflix is likely to launch its own proprietary ad buying platform, moving away from external dependencies. This shift would give the company end-to-end control over ad delivery and campaign management. We can also expect Netflix to activate more of its rich first-party data, using insights from its massive subscriber base to power more intelligent and personalized ad targeting. 

In terms of formats, the platform is expected to experiment with interactive ad units, allowing for higher engagement beyond traditional pre-roll or mid-roll videos.

Long-Term Transformation (2+ years)

In the longer horizon, Netflix may develop its own programmatic exchange, creating a closed-loop marketplace for buyers and sellers within its ecosystem. This would represent a major evolution, positioning Netflix as both content provider and programmatic facilitator. 

Additionally, measurement capabilities are expected to grow more sophisticated, offering advanced attribution models that connect ad exposure directly to outcomes such as purchases or conversions. 

Lastly, as Netflix continues to produce original content, deeper advertising integration with that programming, through product placement, branded content, or sponsorships, could reshape how brands engage with audiences on the platform.

Practical Recommendations for Brands Considering Netflix Programmatic

For brands exploring Netflix as a part of their programmatic advertising mix, success will come down to clear objectives, thoughtful planning, and realistic expectations. 

Given the platform's unique inventory structure and relatively new advertising infrastructure, it's important to approach with a strategy built for both learning and scale.

For Testing Netflix Programmatic

When testing Netflix programmatic, start by focusing on brand-focused KPIs such as awareness, recall, and favorability. Netflix’s high-impact, non-skippable environment is ideal for upper-funnel objectives, but may not immediately deliver direct conversions. 

To generate meaningful insights, marketers should allocate a testing budget of at least $50,000 to $75,000, which allows for adequate reach, frequency, and performance data. 

Timing is also key. Launch campaigns around major content releases or seasonal moments that align with your target audience’s interests to boost engagement. 

It’s also wise to complement campaigns with brand lift studies or attribution tools that can help quantify the impact of your spend beyond basic view metrics.

For Scaling Netflix Programmatic

As you scale your investment, take a more tailored approach. Develop genre-specific creative that aligns with the tone and themes of different content categories. Ads that feel contextually relevant are more likely to resonate. 

Furthermore, you should combine Netflix placements with cross-platform retargeting to continue the conversation on display, social, or other CTV environments where your audience is active. 

Additionally, work closely with Netflix or your media partner to negotiate access to deeper performance data, which can inform ongoing optimization. Lastly, make sure Netflix is integrated into your broader omnichannel measurement framework, so its impact is accurately captured within multi-touch attribution models.

How Strategus Has Helped Brands with CTV Advertisements 

CTV advertising is only as powerful as the strategy behind it. At Strategus, we’ve helped brands across industries turn high-impact impressions into real-world outcomes through precise targeting, retargeting, and attribution. 

Here are a few examples of what effective CTV campaigns can look like in action:

Grocery Store

Strategus launched a CTV and retargeting campaign using loyalty data and demographic filters to drive in-store traffic. Weekly optimizations refined targeting, resulting in over 434,000 in-store visits and 260,000 website conversions over nine months, proving how full-funnel strategies can convert viewers into loyal shoppers.

Physical Rehab Center

To increase physician referrals, Strategus targeted healthcare professionals with CTV ads followed by cross-device messaging. The two-month campaign generated 254 referrals in one month, surpassing past records, with 98% video completion rates, highlighting the power of occupation-based targeting in traditionally difficult verticals.

Fast Food Franchise

A family-focused campaign using CTV, audio, and retargeting helped a fast food chain drive 267,108 in-store visits across 138 Philadelphia locations. With behavioral targeting and real-time attribution, the campaign generated $3.2 million in revenue, demonstrating how local targeting and smart sequencing can deliver real impact.

Closing Thoughts - Is Netflix Programmatic Advertising Worth It?

Netflix programmatic advertising presents a rare opportunity: access to a massive, highly engaged audience within one of the most brand-safe environments in streaming. Its growing toolkit of formats, targeting options, and measurement capabilities continues to improve, making it an increasingly viable option for brands aiming to drive awareness and long-term impact. 

That said, the platform still comes with unique complexities, from creative compliance to limited buying routes, that can make it challenging to navigate effectively.

That’s why working with an experienced partner like Strategus can make all the difference. We help brands plan, activate, and optimize Netflix campaigns with a full-funnel, performance-first approach. If you're ready to turn Netflix impressions into meaningful results, we’re here to help.

Speak to a Strategus expert today to learn more about how we can help scale your programmatic campaigns.