The streaming service Netflix has shared details about its new ad-supported subscription model, which will launch in November. Find out their costs and how much ads you can expect per hour.
In the end, it all happened very quickly: after Netflix publicly considered introducing an ad model in the spring – which should only start at the end of 2022 and then at the beginning of 2023 – the Basic with Ads model will be launched in November of this year. The option will initially be available in twelve countries, including Germany, and at various prices. In addition to information about price and streaming quality, Netflix shares details of advertisers and their targeting and scaling options. In addition, it was finally revealed how much ads reach viewers.
Netflix: This is how much the model with advertising costs in Germany
Greg Peters is the Director of Operations and Director of Product at Netflix. Explains how the new model is built on the company’s blog. Basically, it is said to cost $6.99 per month in the US. In other markets, however, other rates apply. In Germany, for example, it initially costs 4.99 euros per month, and therefore is cheaper than in France or Italy. In Germany, the show must be available from November 3 at 5 pm. Basic with Ads is also available in Australia, Brazil, Canada, Japan, South Korea, Mexico, Spain, and the United Kingdom. The new subscription model will not affect the previous options – Basic, Standard and Premium.
Peters explains that Basic with Ads offers roughly the same requirements as the Basic form. Users of both models can now also stream in 720p/HD. But in the ad-supported model, ads are played to viewers, which take four to five minutes out of the broadcast hour.
In addition, some series and movies will not be available at this time to customers who pay less and watch Netflix with ads due to licensing issues. Peters did not say what these are. But he insists that work is underway to solve the problem. Anyone who is now considering signing up for Basic with Ads but would like to see a lot more on the go should also be aware that the form does not allow downloads. This was leaked back in August.
What does Basic with Ads have to offer advertisers
Netflix’s ad-supported model aims to kill two birds with one stone for the company. On the other hand, new users who just want to pay a small monthly payment should be earned. On the other hand, the data of more than 220 million paid customers must be used for advertising purposes, so that advertisers can use the environment for their messages. Both aim to increase sales of the streaming service.
Advertisers should be able to incorporate 15- and 30-second ads into the new model. It is played either before or during series, movies, and documentaries. In order to reach the right audience, according to Greg Peters, Netflix offers extensive targeting options; There was a lack of clarity about this prior to the detailed announcement. The first test buyers reported insufficient ad placement options. In the future, advertisers will be able to target by country and type. Exclusion actions are also possible to keep advertising content out of inappropriate contexts. These could be scenes of nudity, sexual scenes, or scenes of violence.
Starting in the first quarter of 2023, Netflix will be able to assess the visibility and traffic viability of ads in detail thanks to partnerships with DoubleVerify and Integral Ad Science. To help advertisers understand how to reach their audience on Netflix, Nielsen’s Digital Ad Ratings (DAR) system is used in the United States. The ideas will then be available in reports from Nielsen ONE Ads – but only as of 2023.
Starting a great ad platform?
Netflix’s advertising model is taking shape, and users will be able to access Basic with Ads for a low-cost subscription as early as next month. This would do without some of the basic functionality of the other models, but save a few euros per month.
Your first integrations should show how good your ad experience will be at first. According to Greg Peters, the interest in the advertising community is there. Netflix will endeavor to rapidly expand advertising options and monetize the amount of data at its disposal in this context. Netflix platform usage also plays a role. The advertising form is powered by Microsoft Advertising. The company gained more advertising experience with Jeremy Gorman. The advertising expert was previously Chief Business Officer at Snap Inc. It is now leading ads in Netflix.
The new ad-supported subscription model will be launched in other countries in the coming months. You can get detailed information about this in the company video.
Will you sign up for the Basic with Ads form? Tell us in the comments and feel free to give reasons against this.