What Does Netflix’s New Ad-Supported Plan Mean for Advertisers?

For media buyers and advertisers, streaming services like Paramount Plus, Hulu, and SlingTV have provided a way to reach broad and engaged audiences. However, one service has remained ad-free: Netflix. While Netflix has enjoyed the top spot among streaming services for a long time, things have changed. Netflix’s new ad-supported plan will launch soon, providing a distinctive way for advertisers to promote their products and services to a previously unavailable audience.

We’ll tell you everything you need to know about the new ad-supported tier on Netflix and how you can get in on this previously unavailable opportunity before it’s too late.

A New Ad-Supported Tier on Netflix

Netflix with ads? Yes, it’s true. Netflix has long enjoyed being “king of the hill” as the most popular streaming service in the world. However, competition has risen sharply, with consumers having more choices than ever before regarding where, how, and when they watch their favorite content.

Now, the streaming giant is hopping on the same bandwagon as other services and will show ads to subscribers who opt for the new tier. Though Netflix hasn’t set anything in stone, prices could be as low as seven dollars per month.

However, the price drop will come with about four minutes of commercials for every hour of television show content, although movies will only have pre-roll ads. Broadcast television has around 15-17 minutes of advertising for every hour of TV, so by comparison, the Netflix ratio will actually be quite low.

When Is the Ad-Supported Tier Happening?

Netflix has waffled a few times concerning the start date of the new ad-supported tier. In July 2022, Netflix stated that the ad plan wouldn’t begin until early 2023. However, in September, the company moved the launch date up to the beginning of November of this year, 2022.

So, what’s the deal with Netflix pushing for a closer launch date? Speculation points towards competition as the primary reason. Disney+, which has long remained ad-free at $7.99 per month, is following suit by starting its own advertisement-supported tier – in December. So, Netflix wants to beat one of its biggest competitors by moving the launch date up one month earlier to November.

Is Netflix Going to Lose Subscribers?

As you may or may not know, Netflix has faced an unprecedented loss in subscribers. The first quarter of 2022 saw Netflix losing subscribers for the first time in over a decade, and the second quarter had losses of around 970,000. With the company’s premium HD streaming tier at approximately $20 per month, it’s easy to see why families on a budget have dropped their subscriptions.

However, now that Netflix’s new ad-supported plan is launching, it’s likely that the company will get an increase in new subscribers as a cheaper option entices them. Many people don’t mind seeing a few ads to save a few bucks on their monthly bills.

They’re Not the Only Ones to Ad(d) This Feature

Netflix isn’t the only streaming service that charges less for customers to see ads. Some of its biggest competitors offer cheaper plans for customers who don’t mind seeing a few advertisements at the beginning of their content or periodically throughout it.

For example, Peacock – “The streaming home of NBC” – offers two plans: one with ads, one without. The Premium plan with ads costs $4.99 per month, and the Premium Plus plan with no ads is $9.99 per month. Hulu offers an ad-supported plan for $6.99 per month, or you can pay almost twice that for no ads at $12.99 per month.

What Will This Look Like for Advertisers?

Consumers aren’t the only ones who can take advantage of the many opportunities that Netflix’s new ad-supported plan provides. Advertisers are jumping at the chance to get in early and lay their claim to the few available slots that the streaming giant will have available.

With only four minutes of commercials per hour of content, space is limited, so it’s critical to purchase spots as quickly as possible. However, the chance to reach a previously unreachable broad market of Netflix subscribers is a golden opportunity that many brands can use to diversify their omnichannel marketing strategies.

What Netflix Shows or Movies Will Have Ads?

Unlike other ad-supported streaming services like Peacock and Paramount Plus, which show ads with all their content, Netflix only plans to display ads on certain types of movies and shows. For example, Netflix may not show advertisements for new movies when they’re first released but will instead insert the ads at a later date. Furthermore, you can expect that kid’s content will be ad-free.

How Much Will It Cost to Advertise on Netflix?

Netflix hasn’t released a final cost for advertising yet. However, sources told The Wall Street Journal that pricing would likely cost advertisers around $65 for every 1,000 views. Furthermore, Netflix will enforce a $20 million advertising cap to prevent subscribers from seeing the same advertisements over and over.

Jump on This Limited Advertising Opportunity with The Remnant Agency Today!

For advertisers, the new ad-supported tier Netflix will offer presents a unique opportunity. However, like any good opportunity, the early bird gets the worm. Fortunately, it’s not too late.

At The Remnant Agency, we connect media companies, advertisers, marketers, and businesses with unsold ad spots at deep discounts. When TV broadcasters, streaming services, and other content providers have unsold ad spots, they sell them to us for pennies on the dollar, and we pass the savings on to you.

When we heard about Netflix’s new ad-supported plan, we knew there would be limited space and opportunities for companies wanting to advertise their wares and services with the streaming giant. However, you still have time to claim your spot before the plan launches in a couple of months.

So don’t hesitate, or you could lose the chance to promote your brand to an entirely new audience! Reach out to us at The Remnant Agency today by filling out our online form to jump on the opportunity to advertise on Netflix’s new ad-supported plan – before it’s too late.