How to Advertise on Netflix With Microsoft Ads

In November 2023, Netflix hit a big milestone by offering ads for a whole year. Working closely with Microsoft Advertising, they’ve been helping companies show their ads in new and exciting ways to grab viewers’ attention. This big step has opened up new chances for businesses to reach out to Netflix’s huge audience—260 million people—and has changed how we think about streaming and ads.

This article will dive into how Netflix’s ad-supported model works, its impact on viewers and advertisers, and what it means for the future of streaming.

For a long time, Netflix stood out among leading streaming services by keeping its content ad-free, unlike its rivals such as Hulu and Peacock, which provide cheaper subscription options that include commercials. However, this distinction led to a notable decline in subscriber numbers as consumers started gravitating towards more affordable, ad-supported plans offered by other platforms.

Beginning November 3rd, 2022, Netflix introduced a new subscription option known as Netflix Basic with Ads. It costs $6.99 a month (in the US) and is available in 12 countries:

• Australia
• Brazil
• Canada
• France
• Germany
• Italy
• Japan
• Mexico
• South Korea
• Spain
• United Kingdom
• United States

Watch this video from Netflix to learn more about Basic with Ads:

If you want to learn more about different advertising options, check out our article on the best e-commerce advertising platforms.

The collaboration between Netflix, a streaming giant, and Microsoft, a leader in digital advertising solutions, marks a significant shift in the streaming and advertising industries. This partnership allows advertisers to tap into Netflix’s vast viewer base through Microsoft’s advertising platform, offering a unique blend of content and audience-targeting capabilities.

This partnership stands out for advertisers primarily because it opens up unprecedented access to the younger, digitally-savvy Generation Z demographic. 

With Netflix’s widespread appeal among this age group, advertisers now have a direct channel to engage with a cohort that’s traditionally hard to reach through conventional advertising mediums. This capability to connect with Gen Z viewers, who prefer streaming content over traditional TV, represents a pivotal shift in how brands can communicate with and influence this future generation of consumers.

By utilizing professional Microsoft Ads management, you can achieve even better results in reaching and engaging this key demographic.

Netflix Basic with Ads provides advertisers with options such as pre-roll and mid-roll video ads, ensuring visibility at key moments before and during content streaming. These ads are designed to be non-skippable, maximizing viewer engagement. 

In terms of specifications, video ads require high-definition quality, with specific resolutions and aspect ratios to maintain a seamless viewing experience. 

Advertisers can run :10, :15, :20, :30, :60 second ads.

Currently, advertising on Netflix through Microsoft Ads is available in the US, UK, Germany, France, Canada, Brazil, Mexico, Spain, and Australia, with zip code targeting available for the US.

Netflix Ads via MSA operate on a CPM basis, with pricing varying based on targeting options and video duration.

For targeting options, you can select between Run of Network (ads can appear during anything offered on Netflix, as long
as the viewer targeting matches), Top 10 ( ads will appear in any of the top 10s), or specific genres.

There is also an option to exclude ads from appearing alongside content that may not align with the brand values, such as material featuring explicit sexual content, nudity, or intense violence.

2024 will see even more innovative features and improvements:

• Starting in the first quarter of 2024, advertisers around the world will have access to the new binge ad format. This format is designed to complement the habit of binge-watching by offering viewers an ad-free episode after they’ve watched 3 episodes in a row. 
• Netflix will begin featuring QR codes within ads on Netflix in the US, adding a new interactive element to the advertising offerings.
• Currently available in the US, sponsorships will be going global in 2024. This includes title, moment, and live sponsorships.
• Netflix is enhancing its measurement tools for advertisers, aiming to partner with international third-party providers to ensure campaign verification in 2024. 

Microsoft Ads is crafting the future of advertising by bringing the stories of advertisers to Netflix subscribers worldwide through the platform’s beloved series, movies, and live events. This collaboration is not just about displaying ads; it’s about creating meaningful connections and immersive experiences that resonate with viewers worldwide.

If you are a Shopify store owner, check out our guide on how to set up Microsoft Shopping Campaigns on Shopify.

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