The Netflix Ad-Supported Tier is Taking Shape, and It’s Not What Marketers Expected

  • A $60 CPM?
  • Out-of-reach minimum $20 million?
  • No ability to select programming?
  • No third-party measurement?

As marketers wait with anticipation for news about the Netflix ad-supported offering, some emerging news has marketers, agencies and digital media firms scratching their heads. 

The digital media pros at Brkthru are all for new paid digital media advertising opportunities that reach people where and when they consumer media, but this might feel like another “bright shiny object” where we counsel clients to take a wait and see. 

Netflix started pitching its top inventory (Stranger Things, The Crown) through ad tech partner Microsoft, but brands won’t be able at first to pick the programming in which they can advertise. Netflix will offer ad packages based on 20 genres of programming, with limited audience targeting capabilities. 

Netflix doesn’t have the capability to share reach and frequency data for campaigns, so it will not provide third-party measurement for audience metrics.

The initial CPM for the Netflix ad-supported tier will be $60, higher than Disney+ CPMs of close to $50. Netflix has a minimum investment from media agencies of $20 million, out of reach for many small-to-media size brands and agencies.

True, there will be some advertisers that want to be there first, but for now we at Brkthru are feeling better about performance on other advertising-supported streaming platforms, and for the right price.

Advertisers need a partner who listens, and that includes keeping up-to-date on important emerging industry news. It’s another way “we’re all ears” at Brkthru.