Since it started letting audiences stream shows and movies in 2007, Netflix has become a cultural phenomenon. By the time the company began producing its own original content in 2013, “Netflix and chill” had taken the mantle of what constitutes an ideal date night away from “dinner and a movie.” Now, facing a continuing decline in subscribers, the streaming giant is planning to include ads in the mix starting this fall.
While OTT advertising is already a thriving industry that allows brands to hyper-target dedicated audiences across many streaming platforms, brands that are thinking about advertising on Netflix need to consider the different positive and potentially problematic aspects of being an early entrant before diving into this new marketing channel. Here, members of Forbes Agency Council share their best advice for brands looking to advertise on Netflix soon.
Forbes Agency Council members share advice for brands considering buying ads on Netflix.
Photos courtesy of the individual members.
1. Stick With Quick Branding Ads
Introducing ads into a traditionally ad-free environment is rarely welcomed by subscribers. Ads on Netflix may feel out of place at first, so stick with quick branding ads that get viewers back to their content quickly. Alternatively, marketers may want to wait until Netflix subscribers get used to ads so that the initial annoyance doesn’t become associated with their brand. – Donna Robinson, Collective Measures
2. Think Twice Before Embarking On This Endeavor
My advice would be to think twice before embarking on such an endeavor. Netflix was adored precisely because it was user-friendly, but now, with ads interrupting our movie-viewing experience, it won’t differ much from any other streaming service. Besides, people come to Netflix to watch movies and shows, so why would anyone bother stopping to go visit your website? Would you? – Dejan Popovic, PopArt Studio
3. Know That There Will Always Be An Audience
Although Netflix is losing subscribers, there are always going to be those die-hard members who have stuck with their subscriptions since day one and will continue to. If the price is right, there’s still a huge audience to tap into, and Netflix will most likely always have those Netflix originals that audiences will come to watch. – Jessica Kopach, The JKO Agency
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4. Proceed With Caution, And Be Original
Netflix is synonymous with quality and great entertainment. Do not treat advertising with them as the same old same old. I’d recommend making custom content targeted specifically for the shows and viewers. Also, look at different shows and genres on the platform to place your ad so that it may have a more niche following versus going for their tentpole shows. – Hunter Johnson, Xpedition
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5. Enjoy Access To A Huge Data Set
OTT content runs on different display types, and Netflix uses all of these watching platforms to collect user data from each user journey in the form of predictive behavioral analysis. This is where Netflix is staying ahead of its competitors. As an advertiser, you will get access to this huge data set, which will be extremely helpful in shaping your marketing strategies and ad content creation. – Candice Georgiadis, Digital Day
6. Explore Other Options, Such As Product Integrations
Traditional advertising is losing its edge as consumers are finding more ways to avoid ads; this isn’t going to change. Brands should explore other ways to break into OTT streaming, such as through product integrations in top-trending series and films. Product integrations get brands in front of the same audience as traditional ad spots, but while they’re not distracted, so their engagement and focus is turned on. – Travis Peters, EightPM
7. Leverage Richer Audience Data And Intelligence
Netflix’s ad-supported tier represents a $4 billion opportunity, and their audience has long been sought after. The most important thing advertisers need to consider is leveraging richer audience data and intelligence—context, preferences, sentiment, affinity and attitude—to deliver campaigns that deliver the most impactful content to the right people to drive much higher returns. – Bryan Specht, Salient Global
8. Weigh Engagement Against The Level Of Intrusiveness
Including Netflix in the video mix would bring the immediate benefit of engagement with the loyal Netflix audience core. However, the intrusiveness of the media formats chosen by Netflix will play an essential role in Netflix’s attaining its rightful place among the pantheon of well-established OTT platforms in the future. – Oksana Matviichuk, Performics
9. Evaluate The CPM And The Quality Of The Audiences
Evaluate the CPM first, then evaluate the quality of the audiences you might reach. With a higher CPM, Netflix might serve better for retargeting audiences acquired through less expensive placements or channels. Alternatively, Netflix will serve ads to a higher-quality prospecting audience, so if your media mix can afford the higher CPM, it will likely prove to be a valuable brand growth placement. – Justin Buckley, ATTN Agency
10. Drill Down To A Specific Audience And Manage Performance
It’s all about reaching your target audience. The best part of advertising on OTT platforms is the ability to drill down to a specific audience. Be sure to do your research to see which platform will give you the best results for the best price and advertise there with as much frequency as your budget will allow. Also, don’t set it and forget it—make sure you manage performance. – Michelle Abdow, Market Mentors, LLC
11. Weigh The Pros And Cons
An ad-supported option will mean that there are many clients who will appreciate the placement. However, it will also take away from the experience of the viewer. So it has its wins and also its losses. One thing for Netflix to remember is how they are going to place the ads, and they need to make sure that they are not coming at bad times. – Jon James, Ignited Results
12. Focus On Developing Bite-Sized Content
Focus on developing 15-second, bite-sized content versus longer 30-second spots. Bite-sized content is less annoying to the viewer and spots can be combined for more traditional 30-second buys in other channels/platforms. Lastly, ensure your content entertains and delights the audience—no one wants to watch a toy commercial while binging a murder documentary series. – Katie Schibler Conn, KSA Marketing
13. Test It, But Don’t Put All Your Eggs In One Basket
You might want to be the first in your niche to give this a go, but anything new isn’t guaranteed. Amazon, for example, clearly indicates content that is “free with ads,” while most Netflix subscribers subscribe to it because there are no ads. If Netflix is introducing advertising in response to faltering subscriber numbers, approach with caution. – Bernard May, National Positions
14. Get Ready To Spend A Lot Of Money In The Long Term
While Netflix may make its platform attractive through specials initially, these fees are going to be quite steep and the cost of entry too much for many brands. Make sure that you have robust creative, a good OTT agency and a strong budget that you are good with riding out! – Christopher Tompkins, The Go! Agency
15. Tread Carefully And Be Original
Netflix used to be loved for its seamless streaming experience and, just like with YouTube, its users will unlikely be happy with the introduction of ads at first. Advertisers need to consider creating truly engaging and platform-specific advertisements that will not distract the user from the watching experience and annoy them but rather enhance it. Be creative! – Anastasia Cecchetto, Ace Influencers
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Author: Expert Panel®, Forbes Councils Member
