Mitzi Reaugh’s Post

Launched in November 2022, Netflix's ad-supported plan now generates more revenue per viewer from ads than its competitors. In April, Netflix reported a 65% increase in subscriptions for this tier compared to the previous year. While Hulu has 6x more ad-supported subscribers than Netflix in the US, the revenue per user of its ad-supported plan is approximately 35% less than that of Netflix. However, Netflix's lead may diminish over the next two years as other streamers, particularly Max, Peacock, and Paramount+, are expected to report increased ad revenue over that period. https://lnkd.in/d4WBrMtP

🚀 Did you know? Netflix's ad revenue is soaring! 🎥✨ The streaming giant's focus on its advertising tier is paying off, with ad revenue expected to more than double in the June quarter. 📈 However, subscriber growth has slowed, marking the smallest increase in five quarters amidst summer sports events and post-password-sharing enforcement. 🌞⚽️ 🔍 Why is this shift significant? As the market evolves, Netflix's strategy highlights adaptability and a potential revenue boost from ads. 💡 For businesses, this underscores the importance of flexibility in revenue models and the power of strategic shifts. 📊 What strategies could your business adopt from Netflix's playbook? How does this impact your views on ad-supported services? 🔄 Share your thoughts below or spread the word if you found this intriguing! 👍 or 👎? #Netflix #Advertising #BusinessStrategy #DigitalMarketing #StreamingWars #RevenueGrowth #MarketTrends #BusinessInsights 🌐

Another juggernaut enters the rate cut race. Netflix has dropped its ad prices to below $30 CPM, joining The Walt Disney Company+ and Hulu in lowering costs. This means you can now reach wider audiences more affordably on premium platforms. Amazon Prime Video's upcoming ad-supported tier, priced at $30-$35 CPM, is also adding to the competitive landscape. These price cuts are a game-changer, offering you more opportunities to create highly effective, targeted campaigns with better ROI. The streaming ad market is evolving fast, making it the perfect time to optimize your ad spend. #StreamingAds #Netflix #Disney #MediaBuying #AdTech #DigitalMarketing

Although once unimaginable, Netflix revolutionized content consumption with its monthly subscription model, setting a new standard in the industry. One would say that it changed things once and for all, but the business model seems to be returning to the well-known, successful and sustainable recipe of advertisements. Now, the platform is embracing advertisements, offering ad-supported packages alongside premium ad-free options. This shift opens up new opportunities for brands to reach millions of viewers worldwide, in an environment which has been pure for a decade! Exciting to witness the evolution of the industry and the new opportunities that arise #Netflix #advertising #contentconsumption #industryevolution #businessmodel #ads #brands #media

NETFLIX AD SUPPORTED TIER - 23m maus - "customers on ad-supported plans, 85% are streaming on the platform for more than two hours per day." - So, that's roughly 1.1 billion hours of content a month (assuming an average of AT LEAST 2 hours per day). - Let's say half of those hours are eligible for ads, or 586m hours per month - Go with a $35 CPM and 4 ads per hour - That's $20m a month in potential revenue? - Sub cost with ads is $7 per month and is $15.50 per month. - If 6m of the ad tier subs previously had the higher tier (and that numbers accounts for general churn), that's a month decrease in sub revenue of $51m Someone let me know if I messed up my math or can think of better assumptions here. Good growth here, more gap to close. Amaon's ad tier launches in a few weeks, how that will impact demand and pricing for Netflix?

According to the latest HarrisX survey, Netflix's ad-supported plan, 'Standard with ads', has become the second most popular subscription tier among US users, accounting for 27% of subscribers. Extrapolation of this data suggests that around 22 million U.S users have adopted this plan. With the discontinuation of the ad-free basic plan initiated last summer, this number is likely to grow further. As the company shifts its strategy towards prioritizing user engagement over rapid subscriber growth, the focus on generating ad revenue will become increasingly crucial. Variety #Netflix #HarrisXSurvey #AdSupported #Streaming #UserEngagement #DigitalMarketing

Netflix streaming was one of Amazon Web Services (AWS) early success stories and proofs of concept (I'll drop a link in the comments). "Amy Reinhard, the company’s president of advertising, was clear: Netflix will roll out a proprietary ad tech platform by next year." Could Netflix in-house #adtech be the next Netflix <> AWS collab? There's history there and this could be a major win for proving the value of AWS for Advertising out in the wild... #adtech + #cloud = 🔥

I just read this insightful article on Marketing Dive about Netflix's latest move to handle upfronts with in-house ad tech and new measurement partners. While this innovation showcases Netflix's commitment to staying ahead in the competitive streaming landscape, it also highlights a significant challenge: the evolving consumer preference for ad-free experiences. As viewers increasingly choose subscription-based, ad-free TV options, Netflix's ad-supported model could face resistance. This trend poses a potential threat to Netflix's growth, as it navigates the delicate balance between ad revenue and maintaining a premium user experience. The future of streaming may very well hinge on how effectively platforms can innovate while keeping consumer preferences at the forefront. #StreamingWars #Netflix #AdTech #ConsumerTrends #MarketingDive Read the full article here: https://lnkd.in/gU-vxjCW

🚀 Netflix's Ad Strategy is Winning Big! 📈 Netflix's ad-supported plan is making waves, accounting for 45% of all new signups in available markets! Their revenue soared 17% to USD9.5bil for Q2, with net income skyrocketing 44% to $2.1B. 📊 💡With paid memberships reaching 277.65 million, up 16% year over year, Netflix continues to outshine its competitors. Their password crackdown and bet on #advertising, launched in 2022, are proving to be smart moves. 🏆Ad-supported memberships grew 34% quarter on quarter, contributing significantly to their #growth. “Our ad #revenue is growing nicely and is becoming a more meaningful contributor to our #business,” Netflix said. Despite not expecting ads to be the primary revenue driver in 2024 or 2025, they’re doubling down on this strategy. Netflix has closed over 60 pause ad campaigns with big brands like Expedia Group, The Coca-Cola Company, Ford Motor Company, L'Oréaléal, and McDonald's’s. They’re also testing an in-house ad tech platform in #Canada, set to launch more widely in 2025. A new #TV homepage design is also in the works, aimed at enhancing user experience and visibility of content. 📺 The Walt Disney Company, Hulu, SHOWTIME, AMC Networks take notes! 😉 🏆🎬And let’s not forget, Netflix just bagged 107 Emmy nominations, leading the pack among all networks and streamers.

Alright, stop what you're doing because Netflix just blew the roof off the streaming ad game. At their upfront event, they didn’t just make a splash—they unleashed a tidal wave. Here’s the headline: Netflix has skyrocketed to 40 million monthly active users on its ad-supported plan. Yeah, you heard that right—from a paltry 5 million last year to a jaw-dropping 40 million. If you’ve been sleeping on Netflix’s ad strategy, it’s time to wake up. But the real showstopper? Netflix is partnering with EDO, Inc. to measure ad effectiveness. This isn’t just some run-of-the-mill partnership—EDO’s data shows Netflix viewers are twice as likely to respond to ads compared to other platforms. Translation: Advertisers are getting way more bang for their buck. Kevin Krim Netflix isn’t playing around. They’re assembling an Avengers-like team with The Trade Desk, Google’s DV360, and Magnite, while also launching their own in-house ad tech platform. It’s clear they’re not here to rent the playground—they’re building their own amusement park. So, if you want to see how Netflix is rewriting the rules and leaving competitors in the dust, you need to read this. Trust me, you don't want to miss out. #Netflix #EDO #StreamingWars https://lnkd.in/gaukMhgg