Netflix Will Launch Advertising After Severe Problems • Thumbsup

Netflix is ​​finally open to advertising. So what will happen next?

After losing revenue from the membership system for the first time in more than a decade This change in streaming has extended its influence to advertisers and the technology industry in relation to advertising.

An ad system could be coming to Netflix before the end of the year, and The New York Times reports, citing sources within the streaming company, that the launch will be around a year or two.

Based on Q1 2022 results, Netflix executives have announced that the company will begin looking at ways to bring ads to its platform. It comes after streamers lost their subscription revenue for the first time in more than a decade, until Netflix finally opened itself up to advertising. as it faces stiff revenue growth And the company’s stock has fallen nearly 30 percent since its April 19 earnings announcement.

this sudden change It may reflect Netflix’s perception that the streaming space it has occupied for years is evolving. And companies need to change over time. If you still want to be a key player

Because after many years of growing up, Netflix has faced many problems. and having that advertisement will be able to help fix this issue. In a letter to Netflix shareholders, the company noted that the growing epidemic has hindered its growth. This includes increased competition from other streaming platforms, as well as a higher number of families sharing accounts. which is estimated to be more than 100 million with a difficult turnover This has fueled a push for Netflix to adopt Ad-Supported Video on Demand (AVOD).

from the latest survey Provided by DeepIntent and LG Ads Solutions, viewers will want to see ads if they can pay less for the service. By ad-supported streaming is very popular. This is due to growing consumer apathy about paid subscription services. This Netflix adaptation will give the ad-supported space an opportunity to increase viewership. This is helpful for brands to decide to move their budget from TV to streaming. Help marketers access new marketing opportunities. by offering more variety and size for the campaign.

Despite the ad-supported launch challenges This adjustment could be a key element for Netflix to get back on track if Netflix succeeds in monetizing ads and is able to handle increased password sharing. There’s a chance they can increase their revenue and brands get a chance to engage with consumers who view their content.

Source: marketingdive.com