Microsoft Ads expands partnership with Netflix to support CTV Ads and campaigns

Microsoft Ads expands partnership with Netflix to support CTV Ads and campaigns

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Microsoft advertising has extended its partnership with Netflix to include connected television (CTV) ads on its advertising platform.

This development allows advertisers to target Netflix viewers through the Microsoft Advertising network. Netflix has made its ad inventory available to advertisers running CTV campaigns in the United States, Canada, Brazil, Mexico, the United Kingdom, France, Germany, Italy, Spain, and Australia.

Starting Point

As of early 2024, Netflix reported approximately 269.6 million paid subscribers worldwide, a significant increase from around nine million in the previous quarter, according to Statista data published in May.

Advertisers must agree to Netflix’s inventory policy in their ad group settings when setting up new CTV campaigns in Microsoft Advertising.

In May, Netflix announced plans to build its own advertising platform by the end of 2025, offering new purchasing methods and tools for measuring campaign impact for advertisers.

Additionally, in May, Netflix announced a global partnership with Magnite, indicating a shift from relying solely on Microsoft’s ad technology platform to collaborating with other demand-side platforms (DSPs).

How It Will Work

Initially, Netflix relied exclusively on Microsoft’s ad technology platform. This announcement came during its upfront presentation following the launch of an ad-supported subscription plan in November 2022, part of its broader strategy to increase revenue when it reportedly had 270 million subscribers.

Microsoft noted in its latest announcement that video creatives must meet specific Netflix quality standards and video specifications for a chance to have ads served on the platform, although delivery is not guaranteed. A publisher URL report is available on the Microsoft Advertising platform to track ad placements.

Our Opinion

In our view, the expansion of the partnership between Netflix and Microsoft to support CTV advertising is a significant step for both companies. It allows Netflix to monetize its large audiences through Microsoft’s advertising platform, offering advertisers new opportunities to reach target viewer groups internationally. For advertisers, this opens up new strategic possibilities for targeted advertising and measuring campaign effectiveness. However, it is crucial to adhere to video quality standards to maximize the likelihood of ad delivery on the Netflix platform.

This article available in Ukrainian.

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