From its inception in 1997 to the present day, Netflix has always spoken out against the placement of advertising such as pre-rolls and pop-ups during the viewing of films and TV series. On July 13, following a drop in subscriptions for the second consecutive quarter, the streaming giant announced it would open to the world of advertisingby proposing a new type of subscription. To do so, it chose Microsoft Advertising as its advertising partner. In Italy, the new plan will cost €5.49 per month (compared to €7.99 for the basic plan) and will be available from tomorrow, November 3, 2022. The release will begin in 12 countries, including Canada and Mexico on November 1st, the U.S.A., Australia, Brazil, France, the U.K., Germany, Italy, Japan and South Korea on November 3rd, and finally Spain, whose users will be able to subscribe from November 10th. In this version, the video quality will be up to 720p (HD) and no downloads will be allowed, this mean you won’t be able to enjoy the content offline, and of course, there will be advertising.
In Italy, CTVs (Internet Connected Televisions), are present in more than 18 million households (more than 74% of Italian families). Over the years, Netflix has made agreements with many TV companies, to the point that it is normal to expect to see a dedicated Netflix button on the remote control of your Smart TV. For those who want to learn more, you can find more information on the CTV market in Italy in this study commissioned by PubMatic. The streaming company has become an integral part of our daily lives, with the first 3 most watched series: Squid Game, Stranger Things and Money Heisttotalling over 3 billion 744 million'Netflix& Chill' views, which correspond to over 427,397 years of "TUDUM".
From the end of this year, we will be able to launch commercials in programmes of our choice from the wide catalogue on the platform (which includes films, documentaries, TV series, docu-series, anime and cartons) using Microsoft Advertising. Each spot will last 15 or 30 seconds, for a maximum coverage of 5 minutes per hour of playback. The available placements will be 'pre-roll', i.e. at the beginning of the playback, and 'mind-roll', i.e. in the middle.
As proof to the success of this initiative, the advertising spaces on Netflix are for now all occupied: advertisers from all over the world have already booked them. It is important to remember that unlike other online advertising platforms, the cost is higher, because it is not a matter of communicating to a single individual, but to entire families who share a subscription by watching films and TV series together, effectively amplifying the exposure of the brand to all family members. The predictions for this market bode well for a lowering of the advertising costs after the first months of 'novelty'. In general, YouTube will remain a cheaper channel, with significantly lower CPMs (cost per 1000 impressions). As with YouTube, it will be very important to consider the creative aspect: the commercial will have to comply with the classic rules in order catch attention of the viewers from the very first seconds.
At YAK Agency, as certified Microsoft Advertising professionals we can use this tool to help our partners create:
The peculiarity of this advertising tool (in addition to the normal logic of the TV commercial) is the possibility of hitting the user while they are watching a film/TV series closely related to the product/service offered by the company, as is already the case with audio/video ads on Spotify.
Do you want an advertising space for your company on the next viral film or TV series? Let's talk about it together, click here.