Netflix surveys advertisers on ad sales launch

  • Netflix has started outlining its advertising plans for senior executives in the advertising industry.
  • The streamer wants to offer a less disruptive experience for viewers than rivals Hulu and HBO Max.
  • In a leaked survey, he asks advertisers what their must-haves are and how it can outperform competitors.

Netflix

is already outlining its advertising plans to senior advertising industry executives, telling them viewers won’t see mid-program ads, at least initially.

A person familiar with the conversations said Netflix is ​​telling some on Madison Avenue that it intends to have pre-roll and post-roll ads, but nothing that disrupts programming. Meanwhile, a qualified information technology source said that Netflix has told him it wants to run fewer such ads than competitors like


hulu

and


HBO Max

and that it plans to experiment with sponsorships and product placements.

Netflix unveiled the plan to run ads during its most recent earnings call, reversing long-standing opposition to exciting ads and advertisers eager to reach its viewers, which at this point cover all demographics. As it moves forward to deliver a level of advertising later this year, it will face big questions about how to balance the experience of subscribers accustomed to ad-free viewing with the huge opportunity to generate revenue from advertising.

Netflix is ​​expected to employ its massive data analysis machinery to understand how viewers will be receptive to ads. It’s also teaming up with adtech companies to build an online ad offering (including those specializing in video game ads, another area that Netflix has recently entered). This includes what the familiar source called “high-level conversations” with digital ad-buying giant The Trade Desk. Former Netflix CFO David Wells sits on the board of The Trade Desk, and the company has been promoting its own private market products, which allow advertisers to be more selective about where their ads appear online than with a typical programmatic purchase.

Netflix is ​​also polling Madison Avenue about what it wants to see from


streaming

service. There are already a number of competing services such as HBO Max and Peacock, but some fall short of advertiser measurement and efficiency data. It is expected to be a major presence at the Cannes Lions advertising confab in June.

A recent survey of advertisers suggested that Netflix is ​​eager to know what its must-haves are and how it can improve the ads sold on other streamers. Insider obtained a leaked research document, which asked:

  • What was your reaction to the news that Netflix would launch an ad-supported offering?
  • How can a new offering, like the one Netflix is ​​developing, help strengthen your existing marketing plans?
  • Are there other ways that other ad offerings on the VOD or FAST platforms have let or let you down?
  • Looking at your annual plans, what challenges do you feel that you expect/think Netflix is ​​well positioned to help you solve?
  • Are there specific targeting features that you would be excited about Netflix’s offering? (For example, by audience, time of day, geographic location, or by title or category). What is mandatory in terms of audience/analysis/data/measurement?
  • What are the main things you think are critical for Netflix to offer brands like you?
  • In addition to buying media on Netflix, would you like to see Netflix offer other types of opportunities for Brands?
  • Blue Sky Thinking – What kind of offering or innovation would significantly improve your marketing mix?

“They’re going to be very careful about where to put the ads,” said the executive, who added that there’s a lot that Netflix hasn’t decided on, like what form the ads will take and how they’ll be delivered.

A Netflix spokesperson said: “We are still in the early days of deciding how to launch a lower-priced, ad-supported option and no decisions have been made. So this is all just speculation at this point.”

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