Netflix nears deals with ad measurement partners

As the streaming giant Netflix prepares to launch its advertising product, sources on the client side report that DoubleVerify and Integral Ad Science are lined up to allay brands’ concerns around the new platform’s ad measurement – but effectiveness questions remain.

Netflix is set to launch its advertising-supported tier next month, and has been courting advertisers with a premium offer at premium CPMs. Now, some advertisers that have spoken to Ad Age explain how the two measurement companies are set to mark Netflix’s viewability homework.

Why it matters

Viewability matters, of course, but this option comes at a time of increasing sophistication, not only of measurement capabilities from other, slightly more mature ad-supported streamers like Disney+, or offerings from linear TV channels expanding into streaming; but also of the thinking around the value of how different types of attention develops.

For Netflix, the deal will add some further credibility, but it’s likely just a first step in a more sophisticated offering, as it builds out advertising alongside ad technology and sales partner Microsoft.

Analysis

Advertising was never going to be a short-term moneymaker, but a critical aspect of the business that will grow in importance over the months and years. It is difficult precisely because of the standards set by the competition and because of the increasing scrutiny of advertising budgets at a time of global inflation. It needs to show very early on that it is a sensible place to be spending ad dollars.

For both consumers and advertisers, though, Netflix’s offer is a compelling one. For the former, it’s a cheaper service; for brands, it means access to a logged-in, consented-user base of the kind that premium news publishers offer but with the added benefit of engaging users as they settle down to be entertained.

In context

The news comes as Netflix reveals its UK income for the first time – totalling £1.4bn – in an account filing that shows a 44% headcount expansion in its second largest tv and film production hub outside of the US.

Elsewhere, Netflix’s gaming services division is growing as it explores multiple avenues of revenue diversification.

Sourced from Ad Age, WARC
^{[Image: Netflix]}