A new tier of ads will be launched later this year.
According to advertisers briefed by the company, the streaming giant has been advertising with aggressive pricing. Disney's upcoming ad-supported version of Disney+ is one of the reasons whyNetflix is competing for ad dollars.
The full catalog will not be included in the new ad supported tier. It will cost between $7 and $9 a month and won't include ads for kids' programs.
The ad-supported tier is expected to bring in half a million subscribers by the end of the year, according to Ad Age.
No decisions have been made regarding the launch of an ad-supported tier. This is just speculation at the moment.
We know a lot about the advertising plans.
Snap's top former ad sales execs have been hired byNetflix. The president of worldwide advertising and the VP of ad sales will be a man and a woman, respectively.
The initial talks with advertisers were led by Microsoft's Xandr.
The adtech firm's tool that buys programmatic ads for marketers was briefed by Microsoft. They will be able to set up programmatic ad campaigns. Insertion orders are a more traditional way of buying TV ads. Microsoft won't sell the ads in either case, according to the executive.
Advertisers who have heard the presentation say that the cost to reach 1000 people is between $60 and $65. It would be one of the most expensive streaming TV options for marketers.
Advertisers said they expect prices to go down once the ad-supported tier is launched. Ad agencies are being asked to commit between $10 million and $20 million depending on the size of the agency.
Advertisers are being asked to commit fast. There are two advertisers who said that they were asked for proposals by the week of September 5. It was looking to approve advertisers by the end of the month. A general understanding of how advertisers spread their budgets throughout the year suggests that the biggest TV spenders are the ones that are being targeted byNetflix.
According to an executive who was briefed, streamers typically pitch advertisers on lighter ad loads than traditional TV for a better viewing experience, and that's why they pitch advertisers on four minutes of ads per hour of TV watched.
The executive said that the company is looking to differentiate itself with tools that limit the number of ads that people see to a maximum of three per day.
According to an executive briefed by Netflix, the company only allows a few big brands as launch advertisers and will look at each ad for high quality messaging and creative.
Product placement is integrated into shows like "Stranger Things" and "Queer Eye" thanks to partnerships with brands. The executive said that it was able to make their ads.
According to an executive briefed by the company, advertisers are being offered the ability to target ads by genre, country, and the daily ranking of the top 10 programs.
Advertisers say that there is a lack of measurement at the streaming service. Third parties that vet audience size aren't offered byNetflix at this time. Attribution is one of the metrics that are not offered. Advertisers use such data to vet streaming platforms.
An ad buyer previously told Insider that they were demanding rather than selling. They're not used to it all.
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