At its Upfront event on Wednesday, Netflix introduced an innovative artificial intelligence (AI) tool designed specifically for advertisers. This initiative is part of the streaming service’s substantial investment in its newly launched advertising platform, dubbed the Netflix Ads Suite. The company highlighted various features and tools available to advertisers, along with new ad formats aimed at helping clients effectively reach their target audiences. One of the standout features involves the use of AI to seamlessly integrate ads within shows and movies, providing a more engaging ad viewing experience.
Netflix to Incorporate Generative AI in Advertising
In a recent announcement, Netflix elaborated on the presentations made at the Upfront event. The event was divided between showcasing upcoming and returning content, and outlining the features of its advertising services and the Netflix Ads Suite.
This new advertising platform is currently operational in the U.S. and Canada, with plans for expansion into Europe, the Middle East, and Africa (EMEA) set for next week. By June, the service is expected to be available in all 12 markets where the ad-supported subscription tier has been launched.
The Netflix Ads Suite is equipped with a variety of tools that allow advertisers to target audiences based on over 100 interests across more than 17 categories. Additionally, advertisers will have access to first-party data from Netflix, which includes behavioral insights about users. This platform aims to provide clients with first-party measurement solutions for better tracking the effectiveness of their ad campaigns.
The suite also introduces a new modular framework for ad formats, including an option that employs generative AI to merge ads with the themes of shows and movies. This integration will help create a cohesive viewing experience, making ads feel more pertinent and potentially enhancing their performance.
Advertisers will have access to several unique ad formats, such as interactive midroll ads that appear between episodes or films, and pause ads that play when content is paused. These formats can be further personalized with overlays, calls to action, second screen buttons, and more. All of these options are projected to be available in every ad-supported region by 2026.
“If you take away anything from today, I hope it’s this: the foundation of our ads business is in place. Going forward, we will see an accelerated pace of progress,” remarked Amy Reinhard, Netflix’s President of Advertising.
