Netflix has recognized the need for independent measurement when it starts running ads in the coming months, and it will work with Integral Ad Science and DoubleVerify as its first partners, according to people familiar with the arrangement. Netflix picked those two third-party firms in order to give advertisers assurances that ads will run where they are supposed to and to confirm ads are viewed according to industry standards, these people said.
Integral Ad Science and DoubleVerify are two viewability firms that are part of a growing class of measurement providers that advertisers use to analyze digital ads on the web and connected TVs. Netflix is developing its first ad-supported tier, which is expected to start serving ads in the coming weeks, offering a lower subscription fee to viewers who opt into ads.
The ad industry is watching Netflix closely to see how it develops its first advertising products. Brands are trying to understand how the streaming giant will compete with Amazon, Disney+, NBCUniversal’s Peacock, Roku and other major channels, which all have a head start in ad tech capabilities. Meanwhile, Netflix has been asking for high prices for its ad inventory, at least $60 CPMs—cost per thousand views—while only offering limited targeting possibilities and no third-party measurement, according to people familiar with the situation.