What Marketers Should Know About Netflix Advertising (Before You Buy)

Netflix and Bill? A New Destination for TV Advertisers to Buy Streaming TV Inventory

Excluding sports, half of television’s top watched shows are on Netflix. You heard right, Its dominance is illustrated by recent Nielsen multiplatform data, which reveals that the streaming giant is far more than just a player; it's a powerhouse. The highly anticipated second season of Squid Game, for example, commanded an average of 27.1 million viewers, making it the most-watched series of the season by a considerable margin. Following closely was the limited series Adolescence, drawing a surprising, but impressive 19 million viewers, while Nobody Wants This took the crown as the year's most-watched comedy. Oh, let’s not forget Netflix is also building its sports library to compete in that arena as well, with the addition of airing multiple NFL games and WWE RAW to its growing lineup of live and on-demand sports content. 

This unparalleled viewership and cultural resonance are precisely why the current buzz around Netflix's late entry into the ad-supported space is so electrifying. For years, the streaming giant stood firm on its ad-free premium model, a stark contrast to its competitors. Now, with a "Standard with Ads" tier, Netflix has thrown its hat into the ring, sending ripples through the advertising industry and attracting significant attention from brands and media buyers eager to tap into its massive and highly engaged audience. However, as with any major platform shift, the excitement should be tempered with a closer look at the platform's offering to truly understand its implications for executing a successful streaming TV ad strategy.

"When you look at our competitors, viewer attention begins at a higher level and remains elevated. Even more remarkable is that members focus on mid-roll ads just as much as they do on the content itself.”

     — Amy Reinhard, President of Advertising, Netflix

Why Netflix Introduced Ads

Netflix's decision to embrace advertising was a strategic response to evolving market dynamics:

• Subscriber Growth Saturation: After years of meteoric growth, Netflix faced increasing competition and some saturation in key markets, making it harder to attract new subscribers solely through its ad-free model.

• Revenue Diversification: An ad-supported tier provides a new revenue stream, diversifying income beyond subscriptions and offering a more accessible price point for consumers. The "Standard with Ads" plan currently costs $7.99/month in the US, compared to the ad-free Standard plan at $17.99/month. However, there are plans to raise prices shortly.

• Monetizing Password Sharing: The ad tier also serves as a way to convert password sharers into paying customers, offering a more affordable option for those who might not have otherwise subscribed.

Since its launch in November 2022, Netflix's ad-supported tier has seen significant growth, reportedly reaching over 94 million global monthly active users — an increase of more than 20 million since its last public tally in November 2024. Netflix also said its cheapest tier reaches more 18-to-34-year-olds than any U.S. broadcast or cable network.

Price-conscious viewers are also fueling the spike in Netflix’s ad tier subscription. And they’re not just casual users; ad-supported subscribers are the most loyal, even more likely to stick around than those on Prime or YouTube.

*Source: Magid SubScape Q1’24, US only

Netflix’s loyal subscribers means there is huge potential for growth. In fact, it’s the second fastest growing ad-supported streamer in the U.S and will likely be at the top in no time.

While the future is bright for Netflix, advertisers should be aware of what this really means for them. There are a few critical things to understand about Netflix advertising today. Let’s break down the hype from the facts.

What's Real:

• Massive, Engaged Audience: Netflix undoubtedly offers access to a vast and highly engaged audience, accustomed to premium content. This presents a compelling opportunity for brands seeking reach and attention. Netflix claims high engagement rates, with ads reportedly garnering higher brand favorability and purchase intent compared to the CTV average.

• Demographic and Content Targeting: Netflix offers targeting capabilities based on demographics (age, gender, location) and content categories (genres, top shows). This allows for a level of precision not typically found in traditional linear TV.

• Unskippable Ads: A significant advantage for advertisers is that Netflix's ads are generally unskippable, guaranteeing full ad views. This is different from YouTube, where users are often given the option to skip an ad, or watching recorded content from cable where users can fast forward through an ad.
  
  

What's Hype:

• Inventory Scale: While the user base for the ad-supported tier is growing rapidly, the total ad inventory available might still be limited compared to the vastness of Netflix's content library and its overall subscriber base. Advertisers have reported challenges in achieving desired scale, especially for broad reach campaigns.

• Targeting Precision Beyond Basic Demographics: While basic demographic and content-based targeting is available, the depth of behavioral and audience segment targeting might not yet match more mature programmatic platforms. Advertisers are looking for more granular insights into who is watching, beyond just the content.

• Transparency and Measurement: True performance media relies on robust, transparent measurement. While Netflix is partnering with third-party measurement providers like Nielsen and EDO, the level of direct data access and comprehensive reporting for advertisers is still evolving. The absence of traditional identifiers for tracking viewer behavior presents challenges for cookie-based attribution, requiring alternative solutions.

Key Facts Marketers Should Know About Netflix Advertising

How Netflix’s Ad-Supported Model Works

Netflix’s advertising offering is built around its Standard with Ads tier, a lower-priced subscription plan that gives brands access to one of the largest and most engaged streaming audiences. Launched as part of Netflix’s shift into ad-supported streaming, this tier combines premium content with limited, high-quality ad placements. As of June 2025, Netflix offers three primary subscription tiers in the U.S., each tailored to different viewing preferences and budgets. Here's a detailed breakdown:

Extra Members: Available only with Standard and Premium plans. This feature allows you to add users outside your household for an additional fee.Content Access: While the Standard with Ads plan offers access to most of Netflix's library, some titles may be unavailable due to licensing restrictions.

Ad Experience: The Standard with Ads plan includes commercial breaks during shows and movies. Users have reported that the ads are relatively short and less frequent compared to other ad-supported platforms.

No Free Trial: Netflix does not currently offer a free trial for any of its subscription plans.

Premium Content = Premium Attention

Netflix’s light ad load and binge-friendly environment give your brand unmatched visibility. With just 0.9 minutes of ads per hour on average (self-reported max: under 5 minutes/hour), the platform offers one of the cleanest ad experiences in streaming, meaning less clutter and higher impact.

• Viewers spend 43 hours/month on Netflix, more than any other subscription-based streamer.

• Attention increases over time, with peak engagement occurring after 3+ hours of viewing

Netflix Reaches Viewers Beyond Linear TV and Cable

Netflix delivers unique reach by tapping into audiences that are increasingly elusive on traditional and even digital platforms. Marketers can extend their footprint by connecting with:

• 41% of Netflix ad-supported members who don’t watch any Linear TV

• 67% who don’t have a cable or satellite subscription

  • That number climbs to 70% among ad-free subscribers

• Viewers who have minimal overlap with other premium streaming platforms

Netflix Ads Subscriber Demographic Spotlight*

• 49% Married

• $103K Avg. HHI

• 44% have Avg. HHI +75K

• 40 years old media age

• 32% have children in the HH

• 71% with college degree or higher

• 67% are between 18-49
  
  *Netflix Internal Data, Q1 2025, US only

Netflix Streamed TV’s Biggest Stand-Out Moments 

Mike Tyson’s Comeback Fight Was a Punch-Out Hit

Mike Tyson made his much healed return to the boxing ring on November 15, 2024, at AT&T Stadium in Arlington, Texas. Originally scheduled for earlier in the year, the event was still a landmark event for Netflix, marking its significant entry into live sports streaming. The bout attracted massive global attention and was the most-streamed global sporting event ever, according to internal Netflix data.

• 108 million live viewers worldwide

• 65 million concurrent streams globally, with 38 million in the U.S.

• 60 million households tuned in live to watch the fight

• 56% of all US viewing between 12 AM and 1 AM EST was for the fight 

• 1.4 billion impressions across Netflix’s global social channels

• 121% increase in “emotional engagement when the fight began
  

Netflix Unwrapped Huge Numbers on Christmas Day

Netflix’s first-ever NFL broadcast on Christmas Day drew a historic 65 million U.S. viewers, proving the streamer’s growing influence in live sports. Tatari clients who secured national inventory saw significant performance spikes, thanks to Netflix’s unique ad experience. All viewers, across tiers, were served ads, creating maximum exposure.

• 30 million viewers tuned in just for Beyoncé’s halftime performance

• The success further solidifies Netflix as a top contender for expanded NFL streaming rights in the upcoming season

Netflix's collaboration with the NFL includes streaming at least one holiday game each season through 2026, reflecting the platform's growing partnership with the NFL and its involvement in live sports broadcasting.

WWE Helped Netflix Pin Down Big Streaming Numbers

In January 2024, Netflix agreed to a 10-year, $5 billion deal to become the exclusive broadcaster of WWE’s flagship show, Monday Night Raw, marking the first time in 31 years the program will not air on cable TV. The debut of Monday Night Raw on Netflix on January 6, 2025, was met with impressive viewership numbers:

• The premiere episode attracted 4.9 million global views within the first 24 hours, setting a new benchmark for WWE programming.

• In the U.S. the episode averaged 2.6 million households, more than doubling the 2024 average of 1.2 million households for Raw on cable.

• The Adults 18-49 demographic saw significant growth, with audience numbers more than doubling compared to the previous year.

How Can You Advertise on Netflix?

Ad Formats and Inventory Access

Netflix offers all standard TV ad formats, including 15- and 30-second video ads in pre-roll,mid-roll,and post-roll positions. They also accommodate shorter (10-20-second ads) and longer (up to 60-90-second ads) formats across mid-roll breaks. 

Pause Ads
Netflix recently introduced pause ads, a unique format that shows a full-screen ad when viewers pause their show. It’s designed to be a non-intrusive way to give advertisers premium visibility during natural viewing breaks. 

• Displayed after 5 seconds of inactivity 

• Appears next to brand safe key art

• Leverages most video targeting capabilities

Activation Options:

Tatari offers TV advertisers several options to work together when planning a Netflix TV campaign.

Programmatic Guaranteed

• Guaranteed impressions via DSP

• Best for scale + efficiency in a managed buy ($25K/week min)

Programmatic PMP

• Biddable access via DSP

• Best for flexible pricing, test budgets, control

Robust Targeting Options

Netflix offers a robust array of targeting types as documented below. Additionally, Tatari enables 1:1 audience targeting on Netflix by uploading data through LiveRamp, including the use of third-party segments.

Contextual Targeting:

1) Top 10 Targeting

Top 10 enables marketers to position their brand message in Netflix’s most popular titles (defined by the Top 10 series + the Top 10 films, at a country level, for the previous day).

Top 10 targeting will be implemented at a show level - this means that if a show has multiple seasons, and one of the seasons is in the Top 10, all seasons will be tagged as Top 10 (and therefore a brand will run across that entire title).

Top 10 can also be run programmatically.

2) Genre Targeting

Every non-Kids (genre) title in our catalog falls into one of the “Primary Genre” categories below. Please note, these groupings are mutually exclusive (i.e., there is no overlap between Primary Genre categories, each title is only in one.)

Action, Comedy, Drama, Sci Fi & Fantasy, Romance, Thriller/Horror, Unscripted, Black Stories, Family Time, Food, Gaming, Home Improvement, Holidays, LatinX stories, LGBTQ+ Stories, Music, Sports, Travel, Wellness, Women’s Stories

3) First Impression Targeting

First Impression targets the first position in the first preroll ad pod that a user views on Netflix in a day. This guarantees that your message is the first advertising opportunity members see, increasing the likelihood of capturing their attention.

4) Viewing Moods

With Viewing Moods, brands can target audiences based on their historical content consumption moods and intentions. Each profile is assigned to one or more moods, based on their historical viewing habits. Now, without having to rely just on content-based targeting, advertisers can better align with the viewing mood of the audience they are trying to connect with.

9 different moods: Learn, Adrenaline, Laugh, Scares, Realism, Romance, Escape, Suspense, Unwind

5) Interests Targeting

Interests targeting identifies and categorizes the content preferences and hobbies of members based on their viewing behavior. It allows advertisers to target their campaigns and content to resonate with viewers with these specific interests. This offering helps ensure that ads reach the most relevant audiences who are likely to be interested in their product or service.

Demographic-based audience targeting: Age, gender, household-level attributes

Geo: Country, DMA, state, ZIP

Device: CTV, desktop, mobile

Language: Target Spanish-speaking members

3P Data Targeting:

Tatari is the only partner that enables you to use streaming insights from our dashboard to identify high-performing Experian segments, which you can then activate as targeting layers on Netflix. Segments include:

• Demo

• Gender

• HHI

• Mosaic Group

• Mosaic Type

Premium Opportunities 

Live events on Netflix, such as NFL games, WWE Raw, and major events, include ads that reach all subscribers, even those on ad-free plans. And if the event is big enough, Tatari can measure response just like with linear TV by tracking viewer traffic within the 5-minute window after the ad airs. 

Single-title Sponsorships: Advertisers can secure ad space around a major show launch through larger commitments, with additional reach provided through run-of-schedule (ROS) media.

• Consists of a custom :6s bumper and a non-skippable pre-roll ad or a bumper alone

• Best for big branding moments, high SOV

Investment levels range from $400k to $4M, with many falling in the $500k-$1M range. 

Sponsorships include inventory in the first 28 days of the show/season launch, plus additional ROS media that can be flighted across multiple months.

• Frequency Caps: Bumper has no frequency cap.

• Pre-Roll is capped 1x a day.

• Creative Rotation is allowed

• Timeline: Allow 2+ weeks for creative production 

• Specs: Must provide a logo asset and work with Netflix production for custom bumper

How Do You Measure Success?

Tatari provides a full view of Netflix campaign performance through our DSP reporting, offering key metrics, including:

• Impressions

• Clicks

• Viewability

• Completion Rate

• Reach & Frequency

• Genre

• Geo

Should You Include Netflix in Your TV Media Plan?

While Netflix offers unique access to highly engaged streaming audiences, it’s not always the right fit for every brand or campaign objective. In this section, we’ll help you evaluate when including Netflix makes sense, and when you might be better served by exploring other streaming options.

Evaluating Netflix for Your Media Mix

• Netflix is best suited for high-impact brand awareness, not performance tracking

• Ad inventory is premium, but limited and gated

• Measurement tools are basic compared to other CTV platforms

• Best used as part of a hybrid media mix, not a standalone strategy

• Pair with platforms like Tatari for outcome-based performance and scale

• Ask yourself:

  • Is this campaign focused on awareness or ROI?

  • Do you need full transparency and control?

  • Does your audience overlap with Netflix's ad-supported tier?

When Netflix Makes Sense

• You’re looking for Incremental reach for viewers that are not on linear or other streaming platforms

• You have a readily available, large brand awareness budget to pull from

• You’re interested in testing premium placements, including testing premium content sponsorships

When to Look Elsewhere

• You need to optimize for ROI

• You want specific, outcome-based metrics

• You prefer transparent, self-serve tools

Success on Netflix Starts with a Data-Driven Strategy and Ends with Measurable Results

Netflix’s entry into the ad-supported streaming space is certainly a big deal for advertisers, and a signal to the entire streaming industry that ad-supported models are not just viable, they’re the future. As premium platforms embrace advertising, brands have more opportunities than ever to reach highly engaged audiences. But it will take more than just aligning the brand with the next binge-worthy show to drive real results.

Advertising success still comes down to performance, transparency, and scale. A premium platform like Netflix doesn’t guarantee premium results if you can’t see what’s working. That’s where Tatari comes in. We help brands maximize their TV advertising investment by building a measured media stack that connects media spend to real business outcomes.

Looking to include Netflix in your TV advertising strategy? Let’s talk.

Schedule a demo.