Netflix finally launched its commercials-supported subscription Basic with Ads, marking its entry into advertising. Many marketers are contemplating whether they should take advantage of the opportunity. The answer is: It’s up to you. Here’s what you should be aware of.
Entry point: $1MM
CPMs are around 65 dollars (depending on the type of product)
Reach: 500,000 subscriptions
Targeted but limited: e.g., genre, country
Limited measurement: No IP passes back, very minimal report on post-log types.
How can brands decide if they should be considering the purchase of media?
Utilizing a premium platform mainly depends on business and marketing KPIs, your brand’s baseline perception, and budgetary restrictions. Here’s a guideline to follow when you’re evaluating Netflix as a channel
If you had a few dollars in media that you could invest in, would you be willing to test new channels that might not be as effective as established ones? This could be your time if you want to become an early adopter and try what works or requires improvement.
Are targeting and targeting essential to your marketing strategy? Your initial launch could be limited in terms of data and target.
Are measuring the performance of your business through the ROAS process and increments a requirement? If you have money for testing and aren’t focused on specific outcomes for measurement, This could be an option for you.
What is in the future?
The possibility of running content on Netflix will expand over the coming years. When data becomes accessible, more brands will start exploring Netflix as a CTV SVOD channel. The high-end nature of the content as well as access to high-quality programming will enable Netflix to attract new viewers and customers who want to reduce their television entertainment costs with an advertising-supported option.
In the immediate future, however, the rollout will likely follow in the footsteps of the rollout and launch of Peacock in the year 2020
Top brands from leading verticals will be the initial mover to try the waters.
The initial data and case studies will help determine pricing for the advertiser and subscriptions.
Pricing will be recalibrated many times in the next few years.
In the end, We’re very excited to witness Netflix join the world of advertising, which will add to the opportunities for companies to invest in CTV campaigns, particularly since they’ve had to wait 25 years for this to happen. As the game grows as streaming technologies advance and new technologies, we’ll closely watch Netfix’s subscriber base and CPMs. Are you looking for help for your CTV or programmatic campaign?