During its Upfront event on Wednesday, Netflix introduced a new artificial intelligence (AI) intended for use by its advertisers. The streaming giant is making a significant investment in its in-house advertising platform known as the Netflix Ads Suite, highlighting various features and tools designed to assist advertisers. In addition, the company presented several innovative ad formats aimed at helping clients effectively target their audiences. Among these formats, Netflix plans to employ AI to seamlessly integrate advertisements with its shows and movies, creating a more immersive viewing experience.
Netflix to Incorporate Generative AI in Advertising
In a recent newsroom post, Netflix provided details about the announcements made at the Upfront event. While one segment of the event focused on the company’s upcoming slate of shows, movies, and documentaries, the latter half was dedicated to introducing its new advertising services and the Netflix Ads Suite.
The Netflix Ads Suite has officially launched in the United States and Canada, with plans to expand into the Europe, Middle East, and Africa (EMEA) region next week. By June, the platform is expected to be available in all twelve countries that support the ad-supported subscription tier.
This new advertising platform offers a variety of tools and features that enable advertisers to tailor their campaigns based on over 100 interests across 17 categories. Advertisers will also gain access to Netflix’s first-party data, which includes insights into user behavior, as well as measurement solutions to track the effectiveness of their ad campaigns.
Additionally, Netflix is introducing a modular advertising framework that includes generative AI technology, which will allow ads to match the themes of their corresponding shows and movies. This integration aims to minimize the disconnect viewers may feel during commercial breaks, ultimately making advertisements more relevant and yielding improved results.
Among the new ad formats available to advertisers are interactive midroll ads that will play during episodes or films, as well as pause ads that activate when content is paused. These formats can be customized further with overlays, calls to action, second screen buttons, and more. All new ad formats are set to be introduced to ad-supported countries by 2026.
“If there’s one key takeaway from today, it’s this: the foundation of our ads business is firmly established, and the pace of innovation will only accelerate from here,” said Amy Reinhard, President of Advertising at Netflix.
