Netflix Advertising in 2024: The Complete Guide for Marketers

by The MNTN Team

Min Read

As of 2024, Netflix has over 269 million paid subscribers globally. It remains the number-one streaming service in the world. If you are going to advertise on Connected television (CTV), Netflix represents a prime location to place your content.

While MNTN Performance TV doesn’t currently run advertising on Netflix, we want you to have all the info you need to optimize all your campaigns. With that in mind, our team has put together this comprehensive guide to Netflix advertising.

What Is Netflix Advertising?

For years, Netflix has been ad-free. However, in late 2022, the streaming giant launched a lower-priced ad-supported tier, in part to alleviate consumer concerns about a recent string of price increases.

Netflix advertising functions much like other CTV ad platforms. Viewers will be targeted with ads while they stream TV shows and movies. Typically, an ad (or series of ads) will play before the content starts, and then intermittently throughout the streaming session. That’s really all there is to it.

Netflix currently offers ad-supported streaming at $6.99 per month, less than half the cost of the standard ad-free plan. Ad-supported users can stream content on two supported devices at the same time and download content, too. The downloads will still include commercials.

Despite the fact that some titles may be unavailable on the ad-supported plan, many users opt for the lower-priced option anyway. According to Statista, 66% of Americans say they’d accept ads to save money on streaming services.

Benefits of Netflix Advertising

Advertising on Netflix can offer a ton of perks for your brand.

1. Precision Targeting

One of the standout benefits of advertising on CTV is precision targeting. Unlike traditional television, Netflix supports the creation of custom audiences. You can connect with users based on their preferences and behaviors. This ensures your ads reach the most relevant audience and helps prevent ad waste.

2. Elevated Engagement Levels

You only have a few seconds to connect with users. The good news is that they may be more likely to sit through and pay attention to your ad content if they are already enamored with their favorite show. Running ads on Netflix can help boost engagement and ensure your message hits home.

3. Premium Content Setting

Despite facing stiff competition in recent years, Netflix remains the premier streaming service. It has hundreds of millions of subscribers and premium content that consumers love. You’ll be able to position your streaming ads alongside the latest movies and shows, including Netflix exclusives, and hit content that racks up tons of views.

4. Reach a Young Audience

A staggering 75% of audience members aged 18-34 have a Netflix subscription. If the younger crowd makes up a large chunk of your ideal audience, advertising on Netflix is the way to go. It’s a prime opportunity to make an impression.

5. In-Depth Analytics and Reporting

Netflix provides comprehensive analytics and reporting tools to track the performance of your ads. You can monitor various marketing metrics, such as impressions, click-through rates, and viewer engagement. Use these tools to look at the big picture while also obtaining granular insights about campaign impact.

How Does Netflix Advertising Work?

Netflix advertising works by integrating ads into its streaming service through an ad-supported subscription tier. The company runs three main types of advertisements, which include the following:

Pre-Roll: Appear before a video plays
Mid-Roll: Streams in the middle of content
Post-Roll: Plays after a video and before the next content starts

Typically, ads range from 15 to 30 seconds long. However, Netflix can support longer ads, up to 90 seconds. Post-roll ads tend to be shorter, usually limited to 15 seconds. Pre-roll advertising sessions may include up to 90 seconds of content, which can consist of one long ad or several shorter ones.

Netflix Ad Manager, Explained

Netflix Ad Manager is the streaming service’s user interface for ads. It’s where you’ll go to set up campaigns, select target audiences, and upload creative assets. The Netflix Ad Manager also includes various reporting tools to help you understand your campaign’s reach.

The only downside is that you’ll have to interface with other ad managers for each streaming service you want to run OTT advertising on. Alternatively, you can use a consolidated solution like MNTN Performance TV to access premium CTV inventory and run your campaigns.

While MNTN doesn’t currently host inventory on Netflix, our platform does empower you with cutting-edge tools and resources designed to maximize reach and content impact. You can run your Netflix campaigns in the native ad manager and oversee all of your other CTV advertising efforts using MNTN.

How to Advertise on Netflix

You can start advertising on Netflix in a few steps.

Log In to Your Netflix Ad Manager Account

To advertise on Netflix via Microsoft Advertising, start by setting up a Microsoft Advertising account. Once inside the platform, you’ll gain access to Netflix’s ad options, allowing you to manage your campaigns and strategically select where and when your ads will be shown.

Set Up Your Campaign Details and Budget

Identify the purpose of your campaign, provide some basic details, and create a budget. You’ll also need to pick a goal (i.e., brand awareness or lead generation) and choose the duration.

Choose Your Target Audience

Netflix’s advanced targeting options allow you to narrow down your audience to ensure your ads reach the right viewers. Use various criteria like demographics, interests, and viewing behaviors to customize who sees your content.

Upload Your Video

Upload your creative content to the platform. Ensure the formatting matches Netflix’s specifications and guidelines for optimal performance. High-quality, engaging content is crucial for capturing viewers’ attention.

Learn More: CTV Video Ad Specs & Formats: Complete Guide

Measure Your Performance

After your ad campaign goes live, use Netflix Ad Manager to monitor its performance. Track key metrics and adjust your strategy as needed to improve results. Don’t be afraid to pivot if things aren’t working.

How Are Netflix Ads Shown?

Netflix integrates ads a few times an hour, typically during natural plot pauses to maintain a smooth viewing experience. Ads will appear both before and during certain TV shows and movies, while some new releases only have ads at the beginning.

The progress bar signals upcoming ad breaks, and while watching, the upper-right corner displays the number of ads in each break. During these ads, fast-forwarding and skipping are disabled.

How Are Netflix Ads Selected?

Netflix curates ads according to users’ activities on the platform, including the genres they prefer and their broader location, such as their city and state.

Moreover, unless users have opted out, ads may also be personalized based on their activity across other apps or websites. If users choose to opt out of behavioral advertising, they will still encounter ads, but these will not be tailored using data from external behaviors.

Netflix Advertising Costs, Explained

There’s a lot of speculation swirling around Netflix advertising costs. Like other CTV streaming platforms, Netflix is selling ad space using the cost per mille (CPM) standard. (CPM is the cost to reach 1,000 people.)

Although this will vary widely between campaigns, audience selection, and overall reach, most users can expect to fall between $20-60 per thousand people reached.

Netflix Ads Best Practices

If you are going to run ads on Netflix, make sure that you:

Create high-quality content
Keep it short and sweet
Use clear calls to action
Leverage targeting options
Monitor and adjust

There aren’t any one-size-fits-all equations to Netflix’s marketing success. You have to tailor your content and campaign goals to align with the preferences of your target audience and business objectives.

Performance TV Can Help Manage CTV Campaigns

But why stop at Netflix? Take your Connected TV advertising to the next level with MNTN’s Performance TV platform. With Performance TV, you get access to powerful features like automated optimization that adjusts your campaigns in real-time, ensuring you’re always getting the best possible results. Our in-depth reporting suite provides clear, actionable insights, so you can track performance and make data-driven decisions that amplify your ROI.

But that’s not all — our MNTN Matched feature sets us apart by allowing you to target audiences with unmatched precision. Using the world’s first keyword-based audience builder for CTV, MNTN Matched connects your brand with consumers who are most likely to engage, driving 6x more site traffic and doubling your revenue at half the cost per acquisition compared to traditional TV advertising.

Ready to see how these features can transform your advertising strategy? Request a demo today and discover the MNTN advantage.

Advertising on Netflix: Final Thoughts

Netflix advertising offers a unique opportunity to reach engaged audiences through one of the top streaming platforms. Precisely targeting your ideal audience and creating premium ads will help you achieve campaign goals and deliver meaningful results.

If you want to expand your horizons beyond Netflix, MNTN Performance TV can help.