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As Subscribers Fall, Here’s What Netflix’s New Advertising Model Might Look Like

What Netflix’s New Advertising Model Might Look Like

For ten years, Netflix has been an extremely successful video streaming platform. Throughout the pandemic, it has been a lifeline for many people's entertainment needs. It wasn’t surprising that during the pandemic, the number of subscribers for this platform grew. However, now that the pandemic is easing, estimates show that Netflix has lost around 50% of its subscribers from the past few years. So, to compensate for these losses, a new advertising model has been discussed. Here is what is known about it so far!

What is going to happen to Netflix? 

Netflix is a streaming service that provides videos without any need for advertisements or commercial breaks. However, for the first time in a decade, Netflix is losing subscribers. Now, experts predict that it will continue to do so over the upcoming months. That’s why they are considering incorporating advertising into their platform.

Originally, Netflix promised that it would never use an advertising model on its streaming service. However, they now focus on promoting Netflix to a wider audience by offering cheaper plans. This will be done by incorporating advertisements into its platform, either before the shows or on the platform itself.

What will the advertising model look like for Netflix?

Now, Netflix understands that advertisements can be extremely disruptive to the viewer’s experience, especially if they interrupt the TV show. Subscribers may find this type of advertising extremely frustrating as they may not want to wait for their show to continue. It may also have a knock-on effect on the advertisers as well. Especially if the viewer grows angry at their brand for making them wait for their show to continue. That is why Netflix is adamant that advertisements will only appear before and after the show.

In addition to this, Netflix states that they will only introduce a few advertisements. They are aiming to have less than other streaming platforms. This is to ensure that they can compete with other brands, including Hulu and HBO Max.

How will Netflix tailor appropriate ads? 

As you may already know, Netflix holds a lot of data about its subscribers. Therefore, they will be able to see how the subscriber will react when they see an advertisement. This will help them personalize the advertisement to the right customer. So, if you intend to work with Netflix, make sure that your advertisement is relevant to the viewer. That way it will be more likely that the subscriber will remember your brand more easily.

How are you going to advertise your own products? 

If you have your own brand, it’s important that you use the right streaming platforms to advertise your products. Whether you utilize addressable media, PPC ads, or decide to place your advertisements on a streaming platform, it’s important to combine your marketing techniques together to ensure that you are able to show off your product to the perfect demographic. This will increase your sales and the number of loyal customers that you retain.

And there you have it - everything that we know so far about Netflix’s new advertising model, and how this might affect your streaming experience.

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