With Netflix, Disney, Paramount and Amazon all rolling out ad-supported tiers for their video-on-demand offerings, what degree of advertising are consumers willing to tolerate? YouGov has done a survey on the subject with the following key takeaways: - 2 minutes or less of ad time per hour of content is the maximum acceptable to about 1/3 of respondents - Higher ad loads are then tolerated by much smaller proportions of respondents - Variances by region are relatively pronounced. For example, in India a comparatively high proportion of 14% of respondents would find an ad time of 6-10 minutes per hour of content acceptable. Perhaps unsurprisingly, in general tolerance to advertising declines rapidly as ad load increases. While the survey focused on streaming services, this might also have some transferable insights for ad loads on social media platforms. With media spend on these platforms still growing, ad loads might soon become, or indeed already are, an issue to perhaps take a closer look at. Full article here: https://lnkd.in/euCPpb7H #advertising #marketing #consumerbehaviour
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#Netflix Inc (NASDAQ:NFLX) is expected to rake in more dollars from United States advertisers than Disney+ in 2024 as the service’s higher prices and crackdown on password sharing drive users to its ad-supported membership tier, according to a new report from Insider Intelligence. The report projects that Netflix’s ad revenue will increase 50.3% to about $1 billion in 2024. In comparison, The Walt #Disney Company (NYSE:DIS)'s streaming platform Disney+ is expected to see its U.S. advertising revenue increase 16.1% to $912 million next year. Insider Intelligence analyst Ross Benes told Reuters that Netflix can sell ads at a higher price than other streamers due to pent-up demand for its ad tier. “Because viewers tend to spend more time per day with Netflix than with other streaming services, Netflix's ad revenues are poised to grow significantly,” Benes said. More at #Proactive #ProactiveInvestors #NASDAQ #NFLX http://ow.ly/uXEk1055qma
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🚀 Netflix's Ad Strategy is Winning Big! 📈 Netflix's ad-supported plan is making waves, accounting for 45% of all new signups in available markets! Their revenue soared 17% to USD9.5bil for Q2, with net income skyrocketing 44% to $2.1B. 📊 💡With paid memberships reaching 277.65 million, up 16% year over year, Netflix continues to outshine its competitors. Their password crackdown and bet on #advertising, launched in 2022, are proving to be smart moves. 🏆Ad-supported memberships grew 34% quarter on quarter, contributing significantly to their #growth. “Our ad #revenue is growing nicely and is becoming a more meaningful contributor to our #business,” Netflix said. Despite not expecting ads to be the primary revenue driver in 2024 or 2025, they’re doubling down on this strategy. Netflix has closed over 60 pause ad campaigns with big brands like Expedia Group, The Coca-Cola Company, Ford Motor Company, L'Oréaléal, and McDonald's’s. They’re also testing an in-house ad tech platform in #Canada, set to launch more widely in 2025. A new #TV homepage design is also in the works, aimed at enhancing user experience and visibility of content. 📺 The Walt Disney Company, Hulu, SHOWTIME, AMC Networks take notes! 😉 🏆🎬And let’s not forget, Netflix just bagged 107 Emmy nominations, leading the pack among all networks and streamers.
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🎞 NETFLIX wants to win advertisers over. Here's how: 1️⃣ Netflix is growing its ad-supported tier. The number of ad-supported accounts grew 65% since Q4 last year. This is a key revenue stream for Netflix as they look to expand beyond account subscriptions. 2️⃣ The company is aware that it needs more than just a large audience to attract advertisers. They need to be able to measure the effectiveness of their ads on the platform. 3️⃣ So, Netflix is partnering with multiple measurement providers, like Kantar, Cint, and NCSolutions. This will allow advertisers to track a variety of metrics, including lift in brand awareness, ad recall, brand favorability and consideration. Netflix is still early in ad monetization. Ad revenue is not a major contributor to Netflix's bottom line yet. They need to convince more users to sign up for the ad-supported tier. #adtech #programmatic #netflix #advertisers
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Netflix's US Ad Business Soars: New Advertisers Flock in Q1 2024 Netflix's US advertising sector saw a robust increase with a ~120% YoY growth in ad spending across 7 of the top 10 verticals in Q1 2024. A commanding 75% of Netflix's total ad spend came from new advertisers, significantly outpacing competitors like Peacock and Hulu, where new entrants constituted less than 11% of ad spend. This surge underscores the growing preference for Netflix's ad platform among advertisers, despite ongoing challenges in scaling and accurate ad performance measurement. #Netflix #AdGrowth #StreamingAds #DigitalMarketing #MediaTrends Chat with this post here:https://lnkd.in/ghEjtEt7
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🚀 Did you know? Netflix's ad revenue is soaring! 🎥✨ The streaming giant's focus on its advertising tier is paying off, with ad revenue expected to more than double in the June quarter. 📈 However, subscriber growth has slowed, marking the smallest increase in five quarters amidst summer sports events and post-password-sharing enforcement. 🌞⚽️ 🔍 Why is this shift significant? As the market evolves, Netflix's strategy highlights adaptability and a potential revenue boost from ads. 💡 For businesses, this underscores the importance of flexibility in revenue models and the power of strategic shifts. 📊 What strategies could your business adopt from Netflix's playbook? How does this impact your views on ad-supported services? 🔄 Share your thoughts below or spread the word if you found this intriguing! 👍 or 👎? #Netflix #Advertising #BusinessStrategy #DigitalMarketing #StreamingWars #RevenueGrowth #MarketTrends #BusinessInsights 🌐
The company’s ad revenue is expected to have more than doubled in the June quarter. Netflix likely added the fewest number of subscribers in five quarters during April-June as sharp gains following a crackdown on password sharing ebbed and viewer attention moved to summer sporting events including the Euro soccer tournament .
fastcompany.com
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Disney earnings topped expectations thanks in part to profit at ESPN+ and continued growth at theme parks, but a decline in ad revenue weighed on the top line. The decrease in ad revenue was primarily from Disney’s ABC Network and other owned TV stations, which saw lower political advertising revenue during the quarter. Over the summer, CEO Bob Iger said the company could be open to selling its TV assets. Meanwhile, the company added 7 million new core Disney+ subscribers from the previous quarter, bringing its total number of users to 150.2 million, including Hotstar. The streaming business also narrowed its losses compared with a year earlier. More here:
Disney profit beats Wall Street expectations, but ad revenue is weak
cnbc.com
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Amazon Prime Video's ad tier has propelled CTV into the mainstream ad market, but that doesn't mean it's the best bet for brands, our CEO Maor Sadra tells to Performance Marketing World Read now the full article👉 https://hubs.la/Q02jPl6C0
Amazon Prime Video launches its ad tier in the UK – will we finally see AVOD take-off with it?
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Founder @ Anantadi | Virtual Product Placement for TV, OTT, and FAST | Amplifying Revenue with AI-driven Ad Tech
Netflix's Ad-Supported Plan now has 40M+ Global Viewers. Here's why it’s a game changer for the OTT market. Netflix's ad-supported tier is soaring, with its user base nearly doubling since January to reach 40 million global monthly viewers. This impressive growth is making Netflix a major player in the advertising world. Which means, it can become one of the next advertising giants. More interesting takeaways: - Netflix is taking control of its advertising future by launching its own ad platform, ending its partnership with Microsoft. - The new platform will be tested in Canada later this year, paving the way for a global rollout. - Netflix is committed to expanding its ad-supported tier, making it a major player in the advertising landscape. // What this means for you // 1. More affordable access. Netflix's ad-supported tier provides a more affordable way to enjoy its vast library of content. 2. Increased competition The rise of Netflix as an advertising giant will bring more competition to the market, potentially leading to better ad experiences and lower prices for consumers. 3. New opportunities The ad platform will offer new opportunities for businesses to reach a large and engaged audience. P.S. What are your thoughts on Netflix's ad-supported tier? Do you think it's the future of streaming? #Netflix #StreamingWars #AdSupportedStreaming #OTTAdvertising #DigitalAdvertising
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Another juggernaut enters the rate cut race. Netflix has dropped its ad prices to below $30 CPM, joining The Walt Disney Company+ and Hulu in lowering costs. This means you can now reach wider audiences more affordably on premium platforms. Amazon Prime Video's upcoming ad-supported tier, priced at $30-$35 CPM, is also adding to the competitive landscape. These price cuts are a game-changer, offering you more opportunities to create highly effective, targeted campaigns with better ROI. The streaming ad market is evolving fast, making it the perfect time to optimize your ad spend. #StreamingAds #Netflix #Disney #MediaBuying #AdTech #DigitalMarketing
Netflix Is Lowering Ad Prices to Below $30
adweek.com
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From Variety: Disney is soaking up new commitments from advertisers in one of the driest “upfront” markets seen in recent years, and the company’s efforts to win those ad dollars from Madison Avenue have some rivals spitting out dust. In a bid to win overall commitments, Disney has been striking deals that call for significant “rollbacks” in the rates it charges to reach 1,000 viewers — a measure known as a CPM — on its Disney+ streaming hub, according to six people with knowledge of recent discussions in the industry’s “upfront” market. Each year during the upfront, U.S. media companies try to sell the bulk of their commercial inventory for their next cycle of programming. The Walt Disney Company has in some cases agreed to reduce CPMs for Disney+ by as much as 10% to 15%, according to some of the executives. In exchange for the lowered rates, Disney is securing deals that call for a certain level of volume of ad support across its portfolio. But some of Disney’s rate capitulation has angered rivals, who had hoped not to roll back their numbers to such a degree, and are being forced to do so in order to match Disney’s offer. #TV ’s money scramble takes place in one of the most difficult bargaining sessions in recent memory. Executives on both sides of the negotiating table agree that overall dollar volume is likely to be down. The dim outlook comes as advertisers move their dollars to streaming and digital #media, where there is less pressure to place ad cash months in advance, which is what upfront bookings represent. What’s more, there is a significant increase of digital-video inventory available, thanks to Amazon Prime Video’s recent decision to make its basic #streaming service ad-supported. The reduced demand and increased supply are hurting TV’s ad-sales efforts when the entire sector is in flux. More viewers are moving to on-demand streaming to watch their favorite dramas, comedies and movies, and, in more cases, #sports. Such migration makes the job of offering big audiences — TV’s main distinction from competitors — exponentially more complex. #advertising
Disney’s Aggressive Bid for Streaming Ads Leaves Video Rivals Scrambling (EXCLUSIVE)
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