top of page

Are Ads coming to Netflix?

We see ads everywhere! On Instagram, Facebook, and YouTube, not to mention on the original advertising channels like tv and media. So, the introduction of ads in streaming channels like Netflix was bound to happen, eventually.

However, realistically how efficient are they? Most of us seem bothered when they pop up during our online scrolling sessions. Do people really pay attention to ads? Do they efficiently get their message across?

Well, video advertisements are preferred among marketers, with 92% supporting the previous statement. Nevertheless, on the other side of the spectrum, the audience doesn't seem to agree. According to a survey conducted in the US and Canada, 66% of viewers don't pay complete attention to TV ads. During commercial breaks, 64% of the audience opts for scrolling through their phone, while 21% prefer to switch channels. Although TV ads have been around for quite a while, advertisements on streaming services like Hulu and HBO Max seem to be performing much better. Streaming services supported by ads describe their experience as "extraordinary". Advertisements in these services help companies boost their revenues, engagement rates, and purchase intentions, and the stats are here to prove it!

Let's take Hulu as an example:

Hulu has an "Ad Selector" feature in their service. This feature essentially allows viewers to "control their ad experience by choosing the ad they want to see". Here, advertising goes to another engagement level. Even though marketers may get fewer views on their ads, the viewers that actually matter will be watching. They ultimately give viewers the remote controller to select the most exciting commercials from their perspective. Hulu's Ad Selector is 150% more successful than regular TV ads, as they spark interest, retain attention, develop recall, and move consumers towards purchase intention.

Will Nextflix join the Ad-supported Chat too?

After years and years of withstanding advertisements on their platform, Netflix is officially joining the ad-supported streaming service chat.

In a letter to its shareholders, Netflix announced its plan to bring commercials to its service in 2023. The streaming service is still committed to its ad-free subscription plans. However, they firmly believe their new ad-supported programs will complement the existing ones.

To kick off its ad plan, Netflix will “start in a handful of markets where advertising spending is significant." Even though they expect to see results slowly, they deem the plan worth it. Netflix believes "advertising can enable substantial incremental membership (through lower prices) and profit growth(through ad revenues)."

Bringing commercials to Netflix comes after the company's rough experiences in recent times. With booming competition like Hulu, HBO Max, and Disney+, the company has faced a terrible subscriber loss for the first time in ten years. Netflix hopes for a better future, and it begins with slowly testing the waters in the advertising market. Will Netflix's success rise enough like Hulu? Only time will tell. One thing we can surely expect is viewing commercials while we Netflix & Chill in early 2023.


bottom of page