Netflix is revamping its measurement tool for advertisers as it seeks to bolster its ad revenue. The streaming giant plans to shift its focus from counting individual account profiles to tracking the number of people within households who watch ads.
Currently, Netflix defines monthly active viewers as members who have watched at least one minute of ads on the platform per month, multiplied by the estimated average number of people in a household. This new metric aims to provide a more accurate picture of ad reach and engagement, as it accounts for the presence of multiple users within a single household.
The change is part of Netflix's efforts to become more competitive with traditional media conglomerates when it comes to selling ad space. While the company boasts an impressive array of content, including live sports events and original series, its ad sales have traditionally been limited by the nature of its streaming model, which tends to attract individual viewers who prefer on-demand viewing.
To woo advertisers away from Disney, NBCUniversal, and other media companies that can offer live sports and more traditional advertising opportunities, Netflix has been experimenting with various tactics. These include securing deals for individual titles, hosting talk shows, and partnering with popular brands like WWE and the NFL.
The company's latest move is expected to boost its ad revenue by providing a more comprehensive view of its audience reach. With 190 million monthly active viewers on its ad-supported tier, Netflix is poised to make a stronger case to advertisers as it showcases a lineup of programming that is likely to attract bigger audiences within specific time frames.
As part of its efforts, Netflix has established measurement deals with various providers like Nielsen, iSpot, and Kantar. The company is also developing advertising opportunities around its popular shows, such as the finale of "Stranger Things" and the new season of "Emily in Paris." With major brands like Peroni Nastro Azzurro, FanDuel, and Unilever already on board, Netflix is confident that its revamped ad strategy will help it win a bigger share of the advertising market.
Currently, Netflix defines monthly active viewers as members who have watched at least one minute of ads on the platform per month, multiplied by the estimated average number of people in a household. This new metric aims to provide a more accurate picture of ad reach and engagement, as it accounts for the presence of multiple users within a single household.
The change is part of Netflix's efforts to become more competitive with traditional media conglomerates when it comes to selling ad space. While the company boasts an impressive array of content, including live sports events and original series, its ad sales have traditionally been limited by the nature of its streaming model, which tends to attract individual viewers who prefer on-demand viewing.
To woo advertisers away from Disney, NBCUniversal, and other media companies that can offer live sports and more traditional advertising opportunities, Netflix has been experimenting with various tactics. These include securing deals for individual titles, hosting talk shows, and partnering with popular brands like WWE and the NFL.
The company's latest move is expected to boost its ad revenue by providing a more comprehensive view of its audience reach. With 190 million monthly active viewers on its ad-supported tier, Netflix is poised to make a stronger case to advertisers as it showcases a lineup of programming that is likely to attract bigger audiences within specific time frames.
As part of its efforts, Netflix has established measurement deals with various providers like Nielsen, iSpot, and Kantar. The company is also developing advertising opportunities around its popular shows, such as the finale of "Stranger Things" and the new season of "Emily in Paris." With major brands like Peroni Nastro Azzurro, FanDuel, and Unilever already on board, Netflix is confident that its revamped ad strategy will help it win a bigger share of the advertising market.
i mean they're trying super hard to be more competitive with those other media companies but at the same time they gotta make sure their ad strategy is on point or else ppl will just keep watchin' ads on youtube instead 
I'm not getting my hopes up for advertisers, tho 
. They're gonna be exposed to more ads because they can't avoid 'em on Netflix 
. It's like they're trapped in an ad loop 
. And with more viewers watching in households, it's gonna get harder to measure engagement 
. Not to mention, individual users will start to block ads or use VPNs to escape the tracking 
. I mean, who wants to watch ads anyway? 
that makes sense i guess because individual account profiles aren't super relatable to advertisers right? 
but if they count the number of people in households who watch ads, that could be a more accurate way to measure ad reach and engagement... 
is it gonna make a huge difference for netflix or just a tiny bit? 
. But I guess if they want to compete with those other media companies that have live sports and whatnot, they need to think outside the box, right? 
), I'm all for it.
.
But I guess that's a whole different conversation...
. And don't even get me started on the whole household thing - it's just going to be a bunch of people arguing over who gets credit for watching an ad 
.
... I mean, can't they just keep track of individual account profiles like we're used to? Now they're gonna have to deal with all these extra household viewers... it's like trying to measure a bunch of random cats in the same room 
. And what's up with these measurement deals? Are they paying off or is it just another way for them to make more money off us? 
. This new metric is all about showing advertisers a more accurate picture of who's actually watching, not just individual accounts 
. Can't they just stick to what they do best?
- The Quote Machine 
It's all about finding that sweet spot where everyone benefits, right?