Netflix exploring 'more personalised' approach to ad-tier marketing

Netflix is reportedly exploring how it can enhance the bespoke nature of ads shown to subscribers of its ad-tier service in a bid to “win over” marketing bosses.

Netflix partnered with Microsoft last year to introduce a cheaper version of its subscription service which shows users advertisements.

The move came after the streaming service experienced a loss of subscribers for the first time in a decade.

As reported by the Financial Times (FT), Netflix has been meeting with global advertising executives at this year’s Cannes film festival to explore how it could make the delivery of ads to subscribers more personalised.

Netflix co-chief executive Greg Peters and Jeremi Gorman, president of worldwide advertising at Netflix, were reportedly in attendance at the film festival and met with advertising executives to discuss plans to evolve the way in which it uses its platform for commercial purposes.

According to the newspaper, Netflix is exploring “episodic” campaigns in which a series of different but related sequential ads would be shown to consumers as a way of addressing user dissatisfaction at being presented with the same ad numerous times while watching a series.

The FT said that one advertising executive in attendance at Cannes said that streaming services who have followed Netflix’s lead and introduced ad-tier subscriptions services thought the option would “devalue their offer” yet has actually “massively expanded the reach”.

“Brands are extremely keen to be associated with the Netflix content and now they’re starting to think about much more innovation around the format, much more strategic partnerships,” they said.

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