Netflix with ads seems not to attract as much as expected

For the moment, the version of Netflix at a reduced price and with advertising is struggling to convince, and advertisers are not really finding it. Simple false start or false good idea?

The Netflix giant shivers in the face of the winter cold, but not only. The video streaming platform, which celebrated the launch of its offer with discounted advertising at the beginning of November, seems not to be fully satisfied with the start of the latter, considered too timid. Netflix would indeed be below the audience guarantees made to advertisers, who, logically, look gray (and not Griezmann, go Blues anyway).

Netflix prefers to reimburse advertisers in a hurry

According to the American media Digiday, which has obtained the secrets of several advertising agencies, Netflix is ​​unable to reach the audience targets promised to advertisers. To ease tensions, the firm agrees to reimburse agencies whose advertising screens have not yet been broadcast.

The shortfall varies by advertiser, but Netflix was only able to reach 80% of the expected audience. Concretely, the platform did not deliver enough content to distribute the advertisements it was able to sell to the right targets. ” So they literally return the money », Explains one of the agencies.

Except that Netflix is ​​moving away from the initial deal which consisted of taking stock at the end of the quarter. However, the company prefers to return the money to advertisers who had invested in advertisements to be broadcast, for example, during the holiday season so that they can buy inserts elsewhere. Initially, there was talk of payment on delivery and restitution of excess amounts at the end of the quarter.

The contents (and the public) are lacking to satisfy the advertising agencies

Netflix does this differently than in the world of television, where channels that fail to place all the spots sold to advertisers keep the money made, but offer free space to compensate. While the streaming company’s approach is honorable, not all advertisers were necessarily out to get their money back this way.

Other advertisers, who think that Netflix’s offer with advertising will become more thick in the coming months, prefer to delay and ask the platform to move their investments to 2023, whether in the first quarter or later in the year. ‘year. ” I think we knew there would be a supply problem [de contenus] and that Netflix can’t take that much money “, recognizes another agency.

Without being able to know the exact figures a month and a half after the launch of this offer at a reduced price, the public does not seem for the moment to really adhere, in addition to the missing content. This does not call Netflix’s new long-term business model into question. always according to Digiday, Netflix would charge $55 per 1,000 impressions from its advertisers, up from $65 before the launch of the offer. Some advertisers are no doubt hoping to wait a little longer to lower the bids again. Business is businesseven for Netflix.

Source : Neowin