Netflix Says 2024 Upfront Ad Commitments More Than Doubled
Aug. 20, 2024, 2 p.m.
Read time estimation: 10 minutes.
3
Netflix , the streaming giant that is still relatively new to dealing with Madison Avenue, seems to be winning more advertisers over to its side.
The streamer said it had concluded the bulk of its negotiations tied to the “upfront,” the annual industry market during which U.S. media companies try to sell a large part of their commercial inventory ahead of their next cycle of programming. Netflix said in a memo attributed to Amy Reinhard, president of advertising, that it secured an “increase in upfront ad sales commitments over 2023, in-line with our expectations” that it described as “150% plus.” Netflix did not cite specific volume figures for last year or 2024.
Related Stories
Fubo’s Battle With Venu Sports Is a Stopgap Measure
TIFF Discovery Title ‘Linda’ Debuts Slyly Seductive Trailer Ahead of World Debut (EXCLUSIVE)
The directional growth appears robust, but Netflix remains a relatively small player in the U.S. market when compared to established rivals like Disney, NBCUniversal, or Paramount Global. Media buyers indicate that the overall number of U.S. subscribers to its ad-supported tier is not necessarily substantial enough to justify large-scale deals at this time. Nevertheless, certain advertisers have made commitments to Netflix, driven by a desire to cultivate strong relationships, anticipating an increase in the company’s ad-tier subscriptions.
Given these market dynamics, media buyers assert that Netflix has recently shifted its focus towards offers that more closely link a product or service to the content where ads appear, utilizing what is known as “product placement” or “branded content.” The company recently unveiled a partnership with Google that integrates its “Emily in Paris” series with tailored vignettes and pause ads promoting Google Lens.
Netflix said it struck deals for partnerships tied to series and films including “Squid Game,” “Wednesday,” “Outer Banks,” “Happy Gilmore 2,” “Ginny & Georgia,” and “Love is Blind,” as well around live events including WWE Raw, and its new Christmas Day NFL games.
The company also emphasized ad deals that provide sponsors with visibility in various markets worldwide. The third season of “ Bridgerton ,” for example, features a lineup of “international on-screen title sponsors” including L’Oreal, Pure Leaf, Amazon Audible, Puig, Booking.com, Stella Artois, and Hilton.
Netflix announced that its efforts to launch its own advertising technology platform are progressing as planned, with test runs scheduled for Canada in November. Netflix plans to introduce the system globally in 2025. Netflix initially partnered with Microsoft to provide the technology behind its ad sales operations. Netflix intends to expand its private programmatic marketplace and strengthen its connections with various measurement providers in the coming months.
More from Variety
-
‘Icebox’ Helmer Daniel Sawka Sets Autism Spectrum Romcom for Newen’s Anagram Sweden (EXCLUSIVE)
-
Hollywood Must Define AI Technical Standards to Prep for Its Future
-
‘Tove’ Director Zaida Bergroth’s Hitchcockian Pre-WWII Drama ‘The Wednesday Club’ Being Penned by Ville Virtanen, Birthe Wingren (EXCLUSIVE)
-
Haugesund Fest Boasts Exceptional Norwegian Lineup and Talents, 76 International Pics, Four World Premieres
-
2024 Live Music Business Is Driving Record Revenues, but Some Data Points Raise Concerns
-
‘A Human Position’s’ Anders Emblem Reunites with Amalie Ibsen Jensen for Haugesund-Bound ‘Also a Life’ (EXCLUSIVE)