The cheap plan with ads Netflix is a reality, and the company is working to have it ready —at least in certain markets— for the last quarter of this year, with a view to a global launch in 2023. The platform of streaming has chosen Microsoft as the ally that will provide the technology to display advertisements in its movies and series, but it is still necessary to know which brands will pour their money into the platform to advertise their products and services. What does seem to be clear is that they should have a large marketing budget.
According to a recent report from The Wall Street Journal, advertising on Netflix’s economic plan will not be exactly cheap. Based on data provided by potential advertisers, it indicates that the company’s intention is charge about $65 each time an ad is shown to 1,000 viewers (CPM, or cost per thousand). However, the wish in the future would be to increase it to $80, taking advantage of the possibility of segmenting its reach to specific audiences.
By themselves, these numbers may not say much, but those involved in this story assure that these are figures that are well above what platforms are asking for. streaming rivals.
The sources of WSJ They mentioned that while they were surprised by Netflix’s pricing as an unproven proposition, this is not unusual behavior in the advertising industry. They stressed that many companies that launch proposals of this type usually do so with high prices, and then negotiate lower prices.
Netflix seeks to shape its subscription business strategy with ads
In any case, the monetization of the cheap plan with advertising would not be designed so that potential advertisers spend without control. Netflix would set capped at $20 million as the maximum that each brand could spend per year to promote itself on the platform. In this way, they would seek to prevent certain companies from flooding the service with their ads.
Regarding the distribution of advertising content, Netflix would like to show no more than 4 minutes per programming hour. The ads that the platform would sell would be 15 or 30 seconds long, and would be placed before and during the playback of the movie or series selected by users.
Regarding the targeting of advertisements, the platform would offer different possibilities, although they would not be too varied. Between them:
- Show certain brands to those who reproduce titles that are in the Top 10 of a country.
- Target ads to specific genre productions (drama, comedy, thriller, etc.).
- Limit certain commercials to specific countries.
Does the cheap plan launch in November?
Those interested in showing their ads on Netflix’s cheap plan apparently need to make up their minds quickly. According to The Wall Street Journalthe platform of streaming it wants advertisers to commit to advertising for a full year, and complete the order by the end of September by paying up front. Thus, I would bet on having a strong commercial portfolio before the launch of your subscription with ads. When will it be available? Still not known. But some advertisers say the platform itself entrusted them it would be november 1as the earliest date.
From the perspective of end users, there is still much to learn about the new Netflix plan with ads. The company has not yet confirmed its price, although it is estimated that it would be between 7 and 9 dollars per month. Answers are also expected regarding some questions that have already generated controversy among the public, especially regarding the availability of content and the apparent impossibility of downloading it to play it offline.