- Netflix lost 200,000 customers in three months at the beginning of 2022 and in the following three months, almost a million more.
- As a strategy to start solving the problem, he decided to do something he’s never done before: a plan with ads.
- Netflix’s ad-supported plan is almost ready to launch in some regions.
Netflix just dealt Snap a serious blow by hiring two of its top ad execs to grow its real-time video ad business.
At the same time, Snap is running out of helms in its advertising strategy, industry analysts say.
Those involved are two key pieces of Snap’s advertising structure, Chief Commercial Officer Jeremi Gorman and Vice President of Sales Peter Naylor according to The Hollywood Reporter.
Starting now (September), Gorman will be president of global advertising at Netflix, and Naylor will stay on as vice president of ad sales.
By hiring Gorman and Naylor, Netflix is signing two executives with deep experience in both technology and entertainment.
Gorman, who has been at Snap since 2018, previously worked as a senior advertising sales executive at Amazon and, before that, at Yahoo.
Naylor, meanwhile, who worked at Snap for just over two years, was previously the head of advertising sales at Hulu and a senior executive of digital advertising sales at NBC Universal.
Netflix Takes Big Ad Sellers From Snap
The hires are part of Netflix’s strategy to enter the business of ad-supported short videos.
Netflix CEO, Reed Hastingsargued in April that this is the “consumer’s choice” and therefore strategic change.
“Allowing consumers who would be interested in paying less by tolerating advertising to get what they want makes sense,” Hastings said at the time, adding that the strategy seemed to be working for Hulu, among other services.
Remember that one of the executives who helped Hulu expand its advertising business is now working for Netflix with the idea of building its own platform.
In mid-2022, the unknown was knowing which advertising sales company Netflix was going to partner with to enter the business. There were several candidates, such as NBCUniversal and Google.
In July, Netflix announced that Microsoft would be its global advertising partner, the company that would manage the technology and sales of the new offering.
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