Details of the behind the scenes Netflix ad have leaked, revealing a “hyper-premiumization” of the thing.
It’s official since the beginning of the year, Netflix intends to launch a new subscription, cheaper, but partly financed by advertising. However, the outlines of this offer are still very vague. It is rumored that this offer would cost 7 to 9 dollars and that it would be necessary to undergo 4 minutes of advertising per hour of content viewed. In addition, the entire catalog of the SVOD service would not necessarily be available.
Minted has investigated behind the scenes for details of contracts between Netflix and advertisers and reveals many rumored details. Most interestingly, Netflix would like to “ build the Roll’s Royce of advertising », with many quality requirements. Only the most attractive advertisers could invite themselves to the SVOD service. And for good reason: advertisers should commit to paying several hundred thousand euros per year. Advertisements should therefore rather concern very large advertisers, such as car brands.
Netflix seems to want to avoid creating frustration with a poor user experience. A ” frequency capping would have been introduced in order to prevent a user from seeing the same advertisement more than once per session and more than three times per day. An approach that is the opposite of what Amazon offers on Prime Video. Jeff Bezos’ service displays ads for its own series between each episode watched, but with a very limited range, which regularly leads to seeing the same spot every 20 minutes.
Gradually integrated advertisements
The ramp-up of advertising should also be done gradually, but also differently depending on the content. On its exclusives, Netflix could only integrate apre-roll(an ad before the content), while for third-party content, amid roll(an advertisement during the content) would also be included from the 40th minute of viewing.
The objectives, on the other hand, seem ambitious. Xandr, which is responsible for marketing this offer to advertising agencies, would thus target 13 million advertising impressions in the first month, 30 million in the second… and 1 billion after one year.
In addition, targeting would initially be limited by genre (fiction, documentary, etc.), but brands could then have the possibility of sponsoring the new season of a series. Sociodemographic targeting (by age, location, etc.) would arrive later in 2023.
As a reminder, this new plan should be available in 12 countries, including France, in November 2022.
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