Netflix Says Ad Tier Reaches 70 Million Users Globally

Netflix Says Ad Tier Reaches 70 Million Users Globally
Netflix Says Ad Tier Reaches 70 Million Users Globally

Netflix, a company that once dismissed the concept of allowing commercials around its popular streaming content, now can’t seem to get enough of them.

The streaming giant said Tuesday that its ad-supported tier now reaches 70 million users around the globe, compared with the 40 million it revealed in May and the 22 million it cited in January — a growth trajectory that big marketers want to see before they take Netflix’s advertising options more seriously.

Netflix continues “to see steady progress across all countries’ member bases,” said Amy Reinhard, president of advertising at Netflix, in a statement. “Now, over 50% of new Netflix sign-ups are for the ads plan in ad-supported countries.”

While Netflix’ global numbers are impressive, most marketers don’t make global ad buys, choosing to aim different promotional messages in specific geographic regions, and media buyers in the U.S. have indicated that advertisers want to see the Netflix ad tier generate more impressions overall. But the growth in ad-tier subscribers has been sustained, which could spark new interest from Madison Avenue.

In the meantime, Reinhard said Netflix had sold all out available commercial inventory in its coming Christmas Day NFL broadcasts, the first time the streamer will show live games from a major sports league. Advertisers in the games will include FanDuel and Verizon. FanDuel will serve as an exclusive sportsbook betting partner during a pre-game program that will offer a sponsored segment that will have talent in the show offering analysis and predictions tied to FanDuel’s odds for the games. Verizon will sponsor a segment that will run before kickoff.

She also offered details of sponsorship for the next season of “Squid Game.” The executive noted that Netflix had “partnered with multiple advertisers across our 12 ad-supported countries, including Kia in Korea.” As part of that pact, Kia will get to spotlights its “New Sportage,” a crossover SUV, with a three-part set of linked commercials. Kia will also host a “pop up” event at Kia Unplugged Ground, a complex in Seoul.

Netflix has begun making new forays with audience measurement and ad-tech, two other areas of growing importance to major sponsors.

The company, said Reinhard, will utilize technology from VideoAmp, one of several upstarts vying with Nielsen to count viewers, to “deliver advertisers cross-screen and live viewership measurement.” Both will start with the launch of WWE on Netflix in January. In Brazil, Netflix will use Kantar Ibope CAV to examine cross-publisher reach and frequency, stating in early 2025. And the company in October expanded its relationship with Barb in the U.K. to examine the viewing behavior of subscribers to the ad-supported Netflix tier there.

And in the U.S., Netflix has enlisted Nielsen to measure live viewership for the NFL games. The streamer will contribute its own first-party data to the tabulation, part of a new methodology recently approved by the Media Rating Council.

Netflix also said it has begun operating with its own ad-tech in Canada, part of a move it unveiled earlier this year to break away from a partnership it has with Microsoft. “As we continue developing our ad tech, we look forward to introducing enhanced forecasting capabilities and new targeting, reporting, measurement and insights,” Reinhard said. “Netflix’s in-house advertising technology will roll out globally throughout 2025.”

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