Netflix peine à développer son activité publicitaire : les détails
Netflix’s Challenges in the Advertising World
Netflix is the biggest subscriber video streaming service globally, with 269.6 million paid memberships as of March 2024. Despite its success, the company is facing challenges in the realm of advertising. While celebrating a successful second quarter with revenue hitting US$9.56bn, Netflix is struggling to scale its advertising business. This has become a cause for concern as user growth is predicted to slow down in the next 12 months.
The Hurdles Faced by Netflix in Advertising
Netflix has been in the advertising market for over a year but faces obstacles in getting on media plans due to premium pricing. Advertisers are hesitant due to high costs and the company’s failure to meet ad impression guarantees. There have been instances where Netflix had to return funds to advertisers, highlighting the challenges they are facing.
A Shift to Free Ad-Supported Plans
Speculations suggest that Netflix might introduce free versions of its service in some regions to attract new subscribers. While rumors abound about a free, ad-supported tier with limited content, Netflix has denied plans for this. However, the company is focusing on growing its advertising business in various markets by expanding its team and launching an in-house advertising platform by the end of 2025.
Turning on Ads for All Viewers
There has been a surge in ad-supported viewership, with 40 million people worldwide using Netflix’s ad-supported plan each month. Although Netflix’s approach is cautious compared to competitors like Amazon and Disney, their strategy seems to be paying off with a significant increase in ad-supported members.
Live Events and Sports as a Strategy
To generate more advertising inventory, Netflix has ventured into live events and sports. This move aims to enhance user engagement and expand its market share. While competitors are aggressive in acquiring sports rights, Netflix is treading carefully to ensure profitability and viewer satisfaction.
The Future of Advertising in Streaming
The rise of ad-supported streaming services poses a challenge to traditional TV broadcasters. Advertisers have a vast potential for revenue with targeted video spots on streaming platforms. As the industry evolves, brands and agencies are expected to shift their investments towards these emerging players, creating new opportunities in the advertising landscape.
Source : www.campaignlive.com
