Netflix Inc. is looking to charge brands premium prices to advertise on its coming ad-supported platform!
According to some ad buyers, a sign the streaming giant is expecting strong interest from companies that have long looked to reach its audience.
Netflix is seeking to charge advertisers roughly $65 for reaching 1,000 viewers, a measure known as CPM, or cost per thousand, the buyers said.
Tweet on the latest by Netflix adverts stream
Netflix is seeking top-brands to advertise on Its stream service!@netflix is looking to charge brands premium prices to advertise on its coming ad-supported platform.
— The_Journalbiz (@the_journalbiz) September 1, 2022
That is substantially higher than most other streaming platforms
Netflix’s subscriber count fell for the first time in nearly a decade, causing its stock to post its worst one-day percentage decline since 2004.
Netflix has been racing to get a lower-price, ad-supported tier off the ground as it looks for new ways to generate revenue and attract more cost-conscious users. Since announcing its openness to advertising in April—a significant change for a company that has long sold itself as a commercial-free haven
Netflix wants to cap the amount any brand can spend annually on its platform at $20 million, in order to ensure that no brand advertises too much on the service and people end up seeing the same ad too often, some of the buyers said.
Initially, Netflix plans to sell 15- and 30-second ads that would appear before and during some programs, ad buyers said.
The company is looking to keep the ad load to four minutes of ads for every hour of programming—less than some of the other streaming services and much less than traditional TV, that are usually between 18 minutes and 23 minutes an hour, according to Kantar, a research firm.