Netflix doesn’t want its ads to annoy everyone
All it took was one bad Joker-style day for pushing Netflix over the edge and accept adsthe company having spent the summer developing a new, cheaper subscription tier, and a the wall street journal report on the caliber of advertisers Netflix is looking to woo has some interesting details on what it could mean for us – or at least those of us who are willing to save a few bucks each month watching stranger things with advertisements. On the one hand, Netflix would charge a CPM (cost per mile) of “about $65,” meaning advertisers would pay that much for 1,000 people reached.
It’s apparently “significantly higher” than other streaming services that run ads, but it doesn’t seem like it’s that high just to make more money from advertisers. That’s because Netflix also wants to put a cap on how much a brand can spend on Netflix ads, limiting them to $20 million so that “no brand over-advertises the service and people end up seeing the same advertisement too often”. So if Netflix wants a lot of money but is only willing to take some of it, that means the company seems to specifically want advertisers with money to burn but aren’t as desperate as they are willing to throw a billion dollars at ads, which could create (relatively) better ads that aren’t constantly running on every show and movie.
The WSJ The story also mentions that Netflix plans to start with “15- and 30-second ads that would appear before and during select programs” and that it intends to “keep the ad load at four minutes of ads for every hour of programming”. That’s apparently less than other streaming services and “much less” than regular TV, which WSJ says is “usually between 18 minutes and 23 minutes per hour” (it seems extremely high for anything outside of professional sports).
Rather than directing ads to specific people watching specific shows, Netflix apparently plans to let advertisers target different groups, like people watching from certain countries or watching certain genres. In theory, and assuming you can ignore the part of your brain that says everything Ads are annoying and intrusive, all of which might make the experience of watching ads less squeaky. Either way, whatever they do will be better than some advertisers apparently asked for, with the WSJ story saying that some companies wanted to see sponsored content with actors from Netflix shows talking about how much they love Tide or whatever.
“Hi, I’m Morpheus, Lord of Dreams. You know me from my hit Netflix series The sand man. I’m here to talk to you today about the all-new 2022 Honda CR-V.”
On reflection, that sounds rad. Netflix should do it.