Netflix, known as a leader in streaming technology, announced during the Upfront conference the launch of its proprietary advertising technology platform and the establishment of numerous partnerships in the area of programmatic media buying. This new strategy aims to strengthen Netflix’s position as a significant player in the online video advertising market, competing with giants like YouTube.

Netflix has introduced the Magnite platform, allowing brands to purchase Netflix media through The Trade Desk and Google Display & Video 360. Additionally, the company has partnered with leading measurement firms such as Nielsen, DoubleVerify, and Kantar to provide precise and reliable data on advertising campaign effectiveness.

Netflix’s “Basic with Ads” product, although a relatively new offering, has already gained 40 million active monthly users. In countries where all Netflix plans are available, up to 40% of new subscribers choose the ad-supported option. This demonstrates the growing popularity and acceptance of this model among users.

Amy Reinhard, President of Advertising at Netflix, emphasized that bringing advertising technology in-house will maintain the high quality that has made Netflix a leader in the streaming industry. Importantly, over 70% of users selecting the ad-supported plan watch more than 10 hours of content monthly, indicating a high level of engagement among these viewers.

Although Netflix is still in the early stages of developing its advertising offering, the company has made significant progress. The growth in users of the ad-supported plan was a key point in Netflix’s presentation. The streaming service is not only increasing the availability of its advertising inventory but also aiming to build its own advertising technology, expected to be ready by the end of 2025.

Initially, Netflix collaborated with Microsoft, which is relatively distant from the advertising market, in building its advertising offering. Now, Netflix is seeking a new path and expanding its collaboration with other partners. Through new partnerships and its own advertising technology, Netflix aims to provide advertisers with new ways to purchase ads, deliver more advanced analytics, and offer both standard and innovative methods of measuring ad impact.

Netflix is taking significant steps toward strengthening its position in the online video advertising market. The launch of its proprietary advertising technology platform, the establishment of partnerships with leading industry firms, and the growing popularity of the ad-supported plan indicate that Netflix is becoming a serious competitor to current market giants like YouTube.