Netflix turns on programmatic for Aussie ad buyers
Starting this week, Netflix has enabled programmatic guaranteed buying in Australia for buyers using Google’s Display and Video 360 (DV360) and The Trade Desk.
The capability rolled out in the US last year and in the UK, Germany, France, Spain, and Italy in February. It gives advertisers the ability to target audiences based on genre, geography, and device. Buyers can also now place ads alongside Netflix’s top 10 shows in specific regions with standard pre-roll, 30-second, and 60-second ad slots.
In a LinkedIn post yesterday, Heidi Monro, Senior Manager for Advertising and Sales at Netflix Australia, said that deeper content targeting was now possible, with features supporting brand safety now on offer.
In listing features of programmatic, Monro wrote: “More access to Netflix 1P data with proprietary targeting features designed to connect you with viewers.”
The increased capability is welcome news for media buyers who are embracing the platform.
Netflix reports that more than half of new sign-ups are for ad-supported plans in territories that support it.
The ad-supported plan is now the default cheapest plan after Netflix phased out its Basic plan in Australia back in 2023 and graduated any grandfathered members on the plan to ad-supported tiers in February of this year.
Plans on Netflix Australia
The Standard with Ads plan ($7.99 in Australia) is a tool used by Netflix to limit cancellations, while generating ad revenue. It is a plan that appeals to Netflix’s most price-sensitive subscribers.
In a conversation with Mumbrella, Nunn Media MD Chris Walton said that while the lowest tier appealed to price-sensitive customers, they were still a worthwhile target for advertisers.
“There will be value in reaching those who subscribe to the ad tier, just like there is value in reaching those who watch FTA TV.
“This audience may or may not be different to those who subscribe to ad-free levels – you suspect there will be differences. The job of the agency is to understand what the value is and whether this is right for their clients or not,” he said.
The idea that the ad-supported plans support the price-conscious Netflix subscriber isn’t necessarily a negative considering the financial constraints many people are under right now with cost of living pressures mounting.
“I don’t think there is a shortage of brands who would be interested in price conscious customers, especially in a world where ‘cost-of-living-crisis’ is a term we hear literally dozens of times a day,” Walton said.
Later this week Netflix will deliver its upfronts presentation to US media buyers in New York. Ad-supported subscriptions are expected to be a focus of the presentation.
Last week on his Media Odyssey podcast, media analyst Evan Shapiro speculated that Netflix may be set to take on YouTube with a creator content offer.
“I think Netflix is going to announce a free creator-led sphere, including podcast videos and things like Ms Rachel and Sidemen to their ad product. I think they’re going to announce it within the year – maybe as soon as this upfront. But I just feel like that they keep floating balloons towards that end,” Shapiro said.
