Netflix has revealed the next steps for its advertising business, introducing new offers for advertisers with an aim to expand within the ad-supported video sector.
Announced at Advertising Week New York by its vice president of global advertising sales, Peter Naylor, the new features are designed to entice further marketers.
Offerings include title sponsorships, which sees brands become the premier sponsor for a Netflix show or season.
“We know that brands want to align with specific shows that are contextually and culturally relevant to their marketing objectives,” said Naylor.
Already Frito Lay’s Smartfood is the first brand to use this new format – becoming the main sponsor for the next season of Netflix’s Love Is Blind.
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Another new feature includes a format which allows users to watch another episode of a series ad-free after bingeing a few episodes in a row – as long as they watch a marketing message first.
Currently being dubbed ‘Binge’, Naylor spoke about the benefits this feature will have to the Netflix customer: “If you’re watching two or three episodes in a row — which we’ve all done — we say, ‘Hey, let’s serve this next episode commercial-free, made possible by a brand.’ Then we serve your heroic, epic, 30- to 60-second spot, your cinematic spot.
“At a time when more than 80 per cent of our ad-supported members watch for two hours or more, this product will reward viewers and allow your brands to stand out,” Naylor added.
One final feature – sponsorships to live events – will see broadcast for its upcoming live golf match already set to receive integrated brand messaging from sponsors such as T-Mobile and Nespresso.
Naylor noted that this integrated advertising would be seen by all Netflix users, and not just the subscribers to the ad tier, yet claimed it would still be “natural and holistic”.
He commented: “I’m in charge of the ad-supported audience that we bring to market, but this opportunity, we have the potential to reach all subscribers or viewers in a way that’s going to be integrated into the show.
“So it’s not really pushed, it’s integrated … it’ll have sponsors integrated into the show, it won’t be 15 and 30 seconds [ad spots], and I think that’s expected and it’ll be part of the broadcast in a way that’s natural and holistic.”
The new offerings follow in the wake of the streaming giant debuting its advertising tier less than a year ago and also recently discontinued its basic subscription service, forcing subscribers to pay an extra £4 a month if they want to watch their favourite shows without being interrupted by adverts.
The announcement also comes amid Netflix head of advertising Jeremi Gorman’s departing, to be succeeded by Amy Reinhard.
