WELCOME TO The advertising REPORT
Tech platforms, on the hook to clean up political advertising, take different approaches
January 2, 2020
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Article | May 11, 2022
Netflix Takes an Unexpected Route
Popular streaming giant Netflix’s subscriber count plummeted for the first time in a decade. After it announced the loss of 200K subscribers in Q1 of 2022, its stocks dipped more than 35%. In addition, a shareholder recently sued the platform for violating securities law after its subscriber growth reached an all-time low and the stock value crashed, making the picture bleaker.
It’s not surprising that the platform had a change of heart about bringing advertising to its platform. The decision puts the platform in the same category as its competitors, HBO Max, Amazon’s Freevee, and Disney+, who want to offer cheaper, ad-enabled content to consumers. It also addresses the company’s issue of slow revenue growth.
“Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription, But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
co-CEO Reed Hastings
What Do Advertisers Think?
The advertising community had mixed reactions to the announcement. Long commercials are not an option on streaming platforms like Netflix. The ads run only for a few minutes every hour to retain the viewer experience. Despite this, advertisers are excited to target Netflix’s rich audience of over 200 million.
There is no clarity on who will sell the ads and how the campaigns will be managed. Only time will tell how Netflix’s move will affect its subscribers and the advertising market.
The company will keep ad-free tiers for subscribers who wish to enjoy high-quality ad-free content. It may change its subscription plans to offer low-cost plans with ads and minimize password sharing. There is no set timeline or regions decided for implementing these plans.
The company hopes that this “consumer choice” to choose a cheaper plan will revive its subscriber growth graph.
What Comes Next?
Though Netflix has done the unexpected, it is giving well-established ad-funded broadcasters and streaming platforms a reason to worry. As of now, the potential for a low-cost VOD service equipped with ads is huge for advertisers. Once the plans are introduced, new audience profiles will emerge. Advertisers will want to understand and target them. As an ad platform, Netflix’s performance will only be understood through testing and learning.
Article | February 11, 2020
Since July 2019, the UK’s Competition and Markets Authority has been conducting an extensive investigation of the digital advertising market. In its preliminary report on the investigation, the CMA expresses concerns that Google and Facebook have grown so “large and have such extensive access to data that potential rivals can no longer compete on equal terms.” 2019 marked the year in which digital advertising finally took the crown from TV and other legacy media both in the US and worldwide. Estimates point out that digital ads now account for 51 percent of the almost $600 billion spent globally on advertising, a percentage that should only rise with time.
Article | February 10, 2020
Part of running a business in this era of technology is establishing an online presence. This does not only mean having a well-put-together website and being active on social media, which are both a big part of what online marketing means. In order to reach audiences and turn them into customers, you also need to invest in online advertising. Sometimes, finding the best-suited advertising strategy for your business can be quite daunting, especially given the fact that you have so many options to choose from in the sea of digital marketing. The accessible costs of digital advertising, especially when compared to traditional advertising, may make it tempting for you to what to invest in as many types of ad campaigns as you can find, but keep in mind that they may not all work for your business.
The revelation that, by the age of seven, 53% of British kids will own a mobile phone, will come as good news to one group in particular: advertisers. By the time U.K. youngsters are 11, the ownership ratio reaches a whopping 90%, according to a report published last week by the research consultancy Childwise. And as the penetration of smartphone usage rises, it creates more opportunity for advertisers to get in front of young eyeballs. Parents need to get clued up if they want to stop that from happening. For now, advertising targeted at children has been slower to migrate online than in the broader industry. Whereas more than half of the world's $614 billion of ad spending is now online, less than a third of the outlay for ads targeting children is digital, according to a 2019 study by PricewaterhouseCoopers.
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