Netflix will take on Google and Amazon by creating its own ad server

Netflix announced during its Upfronts presentation Wednesday that it will launch its own advertising technology platform just a year and a half after entering the advertising business. The move pits it against other industry heavyweights with ad servers, like Google, Amazon and Comcast.

This announcement marks a significant upheaval in the streaming giant’s advertising approach. The company initially partnered with Microsoft to develop its ad technology, allowing Netflix to quickly enter the ad space and catch up to competitors like Hulu, which has had its own ad server for more than a decade.

With the launch of its in-house advertising technology, Netflix is ​​poised to take full control of its advertising future. This strategic move will allow the company to create targeted and personalized advertising experiences that will resonate with its massive user base of 270 million subscribers.

“Bringing our advertising technology in-house will allow us to power the advertising plan with the same level of excellence that has made Netflix today’s leader in streaming technology,” said Amy Reinhard, president of advertising. from Netflix. “We are incredibly strategic in how we present ads because we want our members to have a phenomenal experience. We conduct extensive consumer research to ensure we stay ahead of the competition, delivering opportunities that are better for members and better for brands.

Netflix hasn’t said exactly how its internal solution would change the way ads are served, but it’s likely it will move away from generic ads. According to the Financial Times, Netflix wants to experiment with “episodic” campaigns, which involve a series of ads telling a story rather than running repetitive ads.

During the presentation, Netflix also noted that it will expand its purchasing capabilities this summer, which will now include The Trade Desk, Google’s Display & Video 360 and Magnite as partners. Notably, competitor Disney+ also has an advertising deal with The Trade Desk.

Netflix also touted the success of its ad-supported tier, reporting that 40 million monthly active users worldwide opt for the plan. The ad tier had around 5 million users within six months of its launch.