Netflix Advertising 2025. Guide for Marketers

With over 282.7 million subscribers globally (data for February 2025), Netflix is known as one of the most famous streaming services in the world.

The largest subscriber share is in the EMEA market (Europe, Middle East, and Africa). The United States accounts for more than 66.7 million subscribers, and Latin America has about 49.18 million subscribers. Asia Pacific has over 52.6 million subscribers.

Netflix became very popular during the 2020 lockdowns when people stayed at home and had a lot of free time. The possibility of watching all episodes in a few days without waiting a week for the next one became very attractive.

Netflix offers a wide range of content, including original series, movies, documentaries, and licensed shows in various genres, such as drama, comedy, action, horror and others. The most well-known shows, such as Squid Game, The Crown, Black Mirror, and others, attract millions of viewers every day, so for advertisers, this service is another great possibility for working on brand awareness and performance via running Netflix ads.

What is Netflix?

Netflix is a subscription video-on-demand (SVOD) streaming service with an advertising video-on-demand (AVOD) subscription tier. It offers a wide range of on-demand video content that viewers can choose and watch anytime.

Financial Performance

• In Q3 2024, Netflix generated approximately $9.83 billion in revenue, contributing to a total of $28.76 billion for the year.
• Netflix is expected to generate around $31 billion in subscription revenue in 2025.

User Engagement

• Users spend an average of about 62.1 minutes per day on the platform.

Growth Trends

• Netflix added approximately 27.78 million subscribers between Q1 and Q4 of 2023, indicating strong recovery and growth following previous challenges related to subscriber losses.

Until November 2022, Netflix did not offer ads. However, everything changed when Netflix introduced its ad-supported tier, initially called “Basic with ads.” This move was part of a broader strategy to counter slowing subscriber growth and increasing competition in the streaming market. So viewers could choose different plans depending on prices and save money.

The company announced that its ad-supported pricing plan was $7 per month, while its main competitors' (like Disney+ and HBO) similar ad-supported tariffs were approximately $10.

In 2025, the streaming service announced a subscription price increase.

The current tariffs:

Ad-Supported Plan:

Price: Increased from $6.99 to $7.99 per month.

Standard Plan (No Ads):

Price: Increased from $15.49 to $17.99 per month.

Premium Plan (4K Ultra HD and HDR):

Price: Increased from $22.99 to $24.99 per month.

Additional User Fee:

The cost of adding an extra user has risen from $8 to $9.

Users can upgrade or downgrade their subscription plan at any time through the account settings.

So, as viewers get more flexible pricing plans, advertisers get one more streaming service to run the ads. As of early 2025, the ad-supported plan has grown to 40 million global monthly active users, up from just 5 million a year prior. Over 40% of new signups in markets with the ad tier are opting for this plan.

Why does Netflix have ads?

The service started to run ads and implemented ad-supported pricing plans, as they didn't want to give in to competitors who offered more flexible rates.

How do ads work on Netflix?

Netflix offers advanced audience targeting based on demographics, viewing habits, and content context. Advertisers can target by age, gender, location, and even specific genres or popular content categories. There are also performance tracking tools, such as Netflix's Ad Manager, which enables tracking key metrics such as impressions, click-through rates, and overall viewer engagement. The streaming service has also partnered with several measurement companies, including Nielsen and DoubleVerify. Netflix plans to launch its in-house advertising technology platform by the end of 2025. This move will enhance advertisers' ability to buy ads, gain insights, and measure campaign impact more effectively.

However, if a company or advertiser does not limit solution that aggregates data from various sources is essential for campaigns to a single streaming service but instead focuses on reaching specific audiences across multiple platforms, to use a solution that aggregates data from different streaming services and interprets diverse reports can provide a clearer, more comprehensive view of campaign performance. Simulmedia’s TV+ platform offers exactly that—delivering a holistic approach that enables advertisers to see the full picture and maximize impact by creating a halo effect across channels.

How long are Netflix ads?

Advertisers can expect an average of 4 to 5 minutes of ads per hour, with individual ads lasting 15 to 30 seconds. Sometimes, the ad can last longer - 60 seconds. This works for advertisements that show engaging storytelling videos for more detailed or brand-centric campaigns. The ads may vary depending on the specific title being watched. The average CPM is $55.

What ad format could be run on Netflix?

Netflix utilizes both pre-roll (before content), mid-roll (during content), and post-roll (after content) ad placements. These ads cannot be skipped, and they are strategically placed to minimize disruption to the viewing experience. Finding the right balance in ad placement (pre-roll vs. mid-roll) without disrupting the viewing experience remains a challenge.

What device supports Netflix?

Netflix is compatible with various devices, including smart TVs, game consoles, streaming media players, smartphones, tablets, and web browsers.

How to advertise on Netflix. Step-by-step guide for advertisers

Step 1. Access Netflix Ad Manager

Sign Up.

Go to Netflix’s advertising portal and fill out the contact form to request access. Once approved, log into Netflix Ad Manager, the platform’s self-service interface for campaign setup and management.

Set Up Your Campaign.

Define your campaign goals (e.g., brand awareness, lead generation). Choose a daily or lifetime budget (Netflix uses a CPM model).

Step 2. Select Ad Formats & Placement

Choose between pre-roll, mid-roll, and post-roll ads.

Step 3. Target Your Audience

Netflix provides advanced targeting options:

• Demographics. Age, gender, household income.
• Geographic. Target by country, state, or ZIP code.
• Content-Based. Genre, show-specific (e.g., target viewers of Squid Game), devise type.

Step 4. Upload Creative Assets

Specs:

• Video ratio: 16:9 (landscape).
• Resolution: 1920x1080 (HD).
• File formats: MP4, MOV.
• Max file size: 5 GB.

Tip. Avoid overt sales pitches; align with Netflix’s premium content tone.

Step 5. Launch & Optimize

Define your main metrics, such as impressions, click-through rates (CTR), view completion rates, engagement, etc., and track them via Netflix Ad Manager. Experiment with different creatives, ad lengths, or CTAs. Refine audience segments based on performance data (e.g., shift budget to high-performing genres).

Netflix Future Trends

Advertising Expansion and Ad-Tech Innovation

• The company expects ad revenue to double in 2025 as the number of ad-supported sign-ups is growing.
• Transitioning to proprietary ad tech (launching in the U.S. in April 2025) will enable programmatic buying, advanced targeting, and improved measurement for advertisers.
• Netflix is also testing pause ads and interactive ads. It also secures rights to live events like WWE Monday Night Raw and FIFA Women’s World Cup, aiming to attract real-time viewers and advertisers.
• There is also info about cross-platform Integration. Leveraging IP from YouTube/TikTok (e.g., Cobra Kai, Heartstopper) to bridge the gap between short-form and binge-worthy content

Global Growth and Localization

• Asia-Pacific and EMEA regions are key growth drivers, with APAC expected to reach 70.1 million subscribers by 2029.
• Tiered pricing (ad-supported at $7.99 to premium at $24.99) balances affordability and premium experiences, reducing churn despite hikes.

Content Diversification

• $18 billion content budget in 2025 for franchises like Stranger Things and Squid Game, which drive global engagement and ad partnerships.

Data-Driven Personalization

• Using viewing habits and demographic data to refine ad targeting.

Monetization and Market Challenges

• Successfully converting password-sharers to paid users, with 68% of Gen Z opting for ad-supported plans to save costs.
• Foreign exchange headwinds, content cost inflation, and saturation in mature markets like North America.

Key Challenges of Netflix Ads

One of the main challenges in measuring the effectiveness of ads on Netflix is the absence of cookies and traditional identifiers for tracking viewer behavior. This makes it difficult for advertisers to gauge the impact of their campaigns accurately.

Advertisers require robust analytics tools like, for example, the Simulmedia TV+ platform to measure engagement and ROI effectively. Netflix is working on enhancing its in-house advertising technology to provide better insights, but this transition takes time.

The streaming service has a limited Ad Inventory. Although viewers can watch content at any time, there is still prime time on Netflix with high-demand slots (5–10 PM). CPMs rise during this time. The same situation could happen during live events (e.g., NFL games, WWE Raw).

While Netflix has started forming partnerships for major shows and events, building long-term brand sponsorships remains a challenge as advertisers seek guaranteed returns on their investments. Brands that want to advertise globally could face that in some countries, there is no ad-supported price plan, only ad-free.

There also exist creative restrictions. Netflix prohibits political, gambling, and alcohol ads.

Netflix's advertising strategy has shown promising growth since its launch, but challenges remain in maximizing monetization, ensuring effective targeting, and maintaining user satisfaction. As the platform continues to innovate and expand its ad offerings, addressing these challenges will be crucial for attracting and retaining advertisers in a competitive landscape.