Netflix launched its ad-supported plan two years ago, along with consecutive price increases in almost all countries, affecting general plans, with the constant concern that prices will keep rising. Although many criticized streaming services after this move, the truth is that Netflix is more popular than ever. In fact, the ad-supported plan has been a major success in all regions where it is available. This success has even led other major streaming companies to adopt similar plans.
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Will ads be the future of streaming? Only time will tell. However, what we know for sure is that ads are a significant part of the present. In terms of numbers, Netflix has confirmed that 50% of its new subscribers have chosen the ad-supported plan, and the total number of active users with this subscription type has reached 70 million monthly users.
Their internal numbers also support this. Ads are a win-win for advertisers, platforms, and even users, according to the data. The company reports that a car advertiser in the U.S. (whose name they haven’t revealed) saw increased activity in both search and web visits after running a campaign on Netflix.
Advertising on Netflix is also well-received by users.
As Netflix points out, users who were served ads were 3.2 times more likely to engage with the ad compared to other CTV services, and 4.5 times more likely to engage compared to traditional TV campaigns. The same success is seen with Spanish-language ads. In Mexico, one advertiser saw a +30 point increase in brand awareness and a +15 point increase in message association through a Netflix campaign, outperforming other advertising platforms.
However, the regional rollout of ad-supported plans isn’t global yet, so there’s still a lot of potential for growth. Additionally, many measurement tools and campaigns are unavailable in certain countries, meaning Netflix’s full advertising potential hasn’t been realized. Nevertheless, Netflix has confirmed that its internal advertising technology will be rolled out globally by 2025.
Given these results, it seems logical for other streaming companies to move toward ad-supported content. At the moment, the only major company holding out is Apple TV+, but rumors suggest it might soon join Netflix, Disney+, and Prime Video in offering ads.
