As streaming services continue to transform the entertainment industry, advertisers are exploring new opportunities to connect with audiences through platforms that were once completely ad-free. One of the most significant developments in recent years is the introduction of advertising on Netflix. This change has opened up a powerful and exclusive avenue for brands to reach highly engaged viewers within a premium digital environment. For businesses aiming to expand their digital advertising efforts, Netflix presents a unique opportunity that combines global reach with data-driven targeting capabilities.
The Evolution of Netflix’s Advertising Model
For over a decade, Netflix positioned itself as an ad-free platform, focusing on subscription-based revenue. However, changing market dynamics, increased competition in the streaming landscape, and shifts in consumer behavior led the company to explore alternative revenue models. In November 2022, Netflix launched its ad-supported subscription tier, signaling a major strategic pivot.
This development came at a time when advertisers were increasingly seeking premium video inventory, and streaming platforms were looking to diversify their income. The introduction of the ad-supported tier allows Netflix to maintain affordability for users while generating new revenue streams through advertising partnerships.
The Microsoft Partnership: A Strategic Backbone
A key component of Netflix’s entry into advertising is its exclusive partnership with Microsoft. Microsoft serves as Netflix’s global advertising technology and sales partner. This partnership plays a crucial role in the platform’s ability to deliver and manage ads across its content catalog.
Microsoft provides the technical infrastructure and programmatic ad-buying capabilities required to operate at scale. Through its acquisition of Xandr, Microsoft has bolstered its position as a leading ad-tech provider, enabling Netflix to offer high-quality, privacy-safe advertising solutions.
For brands interested in running campaigns on Netflix, this means that buying inventory is facilitated through Microsoft’s platform. Advertisers either work directly with Microsoft or collaborate with agencies that have access to Microsoft’s advertising ecosystem. This centralized approach ensures strict control over the ad experience while maintaining the premium nature of Netflix’s content.
Eligibility Requirements for Advertisers
Netflix’s advertising platform is not entirely open to the public in the same way as other programmatic channels. The company maintains high standards to preserve user experience and brand alignment. As such, there are specific eligibility criteria that advertisers must meet.
Brand Safety and Content Guidelines
Netflix places a strong emphasis on content quality and brand safety. Advertisers must adhere to guidelines that ensure their campaigns align with the platform’s standards. Categories such as tobacco, political messaging, adult content, and firearms are generally prohibited. Additionally, creative assets are subject to review for tone, messaging, and appropriateness.
Geographic Availability
Initially, Netflix’s ad-supported tier was launched in a limited number of markets, including the United States, the United Kingdom, Canada, Australia, France, Germany, and Japan. As of 2025, Netflix has expanded its advertising availability to additional regions, but not all countries are supported. Advertisers must ensure that their target audience is located in eligible markets where the ad-supported plan is active.
Business Verification
To maintain accountability and transparency, advertisers are required to undergo a business verification process. This includes submitting company credentials and verifying payment capabilities through Microsoft’s platform. Agencies working on behalf of clients must also demonstrate authorized representation and provide documentation if required.
Minimum Investment Considerations
Advertising on Netflix is currently tailored more toward mid to large-sized advertisers due to the platform’s minimum investment thresholds. While specific figures may vary depending on region and campaign objectives, there are general financial considerations that marketers should prepare for.
Campaign Budget Minimums
Netflix campaigns typically require a minimum ad spend, which ranges from approximately $20,000 to $100,000 depending on the country and campaign type. This ensures that only serious advertisers with well-developed campaigns participate in the platform’s early-stage advertising program. Smaller businesses with limited budgets may find it challenging to meet the initial financial requirements.
Premium Pricing Structure
Netflix commands premium pricing in the advertising market due to its high-quality content, lack of advertising clutter, and desirable audience demographics. CPM (cost per thousand impressions) rates on Netflix are generally higher than on platforms like YouTube or traditional TV because of the platform’s exclusive content and controlled ad frequency.
Creative Development Costs
In addition to media spend, advertisers must factor in the cost of producing high-quality video ads. Given the cinematic nature of Netflix’s platform, subpar creative may be less effective. It is recommended that brands invest in professional production to meet the expectations of the audience and adhere to the platform’s visual and messaging standards.
Steps to Launch a Campaign on Netflix
Launching a campaign on Netflix involves several coordinated steps, from initial engagement to final deployment. Below is a general overview of the process.
1. Initial Inquiry and Qualification
Advertisers begin by submitting an inquiry either directly to Microsoft Advertising or through an approved agency partner. During this stage, the brand’s industry, campaign goals, and budget are assessed to determine eligibility. Netflix and Microsoft reserve the right to approve or reject campaigns based on alignment with platform policies.
2. Strategic Planning and Media Buying
Once approved, the advertiser works with a media strategist to define the campaign’s parameters. This includes selecting target geographies, audience segments, scheduling, and ad formats. Currently, Netflix offers pre-roll and mid-roll video ad placements with frequency caps to preserve the user experience.
Media buying is handled through Microsoft’s platform, using either a managed service or a self-service programmatic tool. Netflix’s advertising inventory is not part of open programmatic exchanges, meaning that access remains limited to verified buyers.
3. Creative Asset Development and Submission
Creative assets must be submitted for review and approval. Ads must be video-based and adhere to strict technical and content specifications. This includes aspect ratio, duration, audio quality, and encoding requirements. Submissions are evaluated to ensure they comply with Netflix’s content policies and meet the platform’s aesthetic standards.
4. Campaign Launch and Performance Monitoring
After final approvals, the campaign is launched and begins serving to viewers within the ad-supported tier. Advertisers have access to performance data via Microsoft’s reporting tools. Metrics such as reach, impressions, view-through rates, and completion rates are tracked to assess campaign effectiveness.
Netflix offers a high level of transparency in reporting but maintains user privacy by avoiding granular personal data sharing. Brands can use performance insights to optimize future campaigns and refine targeting strategies.
Key Benefits of Advertising on Netflix
Despite the barriers to entry, advertising on Netflix offers unique advantages for brands looking to make a strong impression.
Access to Engaged Viewers
Netflix users on the ad-supported tier are typically watching with intent and minimal distraction. This creates an environment where ads are more likely to be noticed and remembered.
Limited Ad Load
Unlike other platforms that may serve several ads per break, Netflix maintains a very light ad load. This reduces competition for attention and helps advertisers stand out more effectively.
Global Reach and Premium Content
With over 260 million subscribers worldwide, Netflix provides advertisers with unparalleled reach. Its original programming and licensed content span genres and languages, offering opportunities to connect with diverse audiences.
Exclusive Inventory
Since Netflix advertising is not part of open exchanges, brands gain access to exclusive inventory that is not available through standard programmatic platforms. This scarcity can enhance the perceived value of campaign placements.
Start Your Netflix Advertising Journey Today
Netflix’s entry into the advertising market has created a new premium space for brands to connect with global audiences. Through its partnership with Microsoft, Netflix has developed a controlled and high-quality advertising platform that prioritizes user experience while offering valuable media opportunities to advertisers.
Getting started with Netflix advertising requires meeting certain eligibility standards, investing in high-quality creative, and working through a structured buying process. While it may not be accessible to every brand at this stage, those who meet the criteria can benefit from engaging viewers in an environment that blends entertainment with strategic brand exposure.
As Netflix continues to expand its ad-supported offerings, the platform may open additional opportunities for advertisers of different sizes. For now, it remains a powerful channel for brands that are ready to make a meaningful impact in the streaming era.
