Netflix’s ad plans are starting to take shape, with advertisers saying the streaming giant is offering limited targeting capabilities, the inability for brands to select the programming they want to advertise in, as well as a price tag that surpasses that of every other streaming platform.
Netflix has been exceedingly tight-lipped on its developing ad-supported subscription tier, which multiple agency buyers have told Ad Age is the result of not having answers rather than an unwillingness to answer them. Now, the streamer has begun pitching its coveted inventory via its ad tech partner Microsoft, with what sources say is an overpriced, underdeveloped product—potentially coming sooner than previously announced.
Despite announcing an early 2023 launch date during its recent second-quarter earnings call, multiple agency buyers have said Netflix is eyeing a November debut for its ad tier in an effort to launch before Disney+ debuts commercials on Dec. 8.
In its initial offering, brands won’t be able to pick which programming they advertise against, according to two media buyers. Netflix has not yet divulged which of its programming will be available to advertise in as it finalizes its licensing deals.
“We are still in the early days of deciding how to launch a lower priced, ad-supported tier and no decisions have been made. So, this is all just speculation at this point,” a Netflix spokeswoman said.
Earlier this week, the streamer hired Snap executives Jeremi Gorman, who will become president of worldwide advertising, and Peter Naylor, VP of advertising sales, to lead its new offering. The duo will start at Netflix in September.