What Happened
Netflix has been steadily building its advertising business since launching its ad-supported tier in 2022. But until now, buying Netflix ads was a walled garden experience: you had to go through Microsoft’s platform, which left many advertisers limited in scale and targeting options.
By making its inventory available programmatically through Amazon DSP (available beginning in Q4), Netflix is opening the door to a much broader set of advertisers. Now, brands that already use Amazon’s DSP can fold Netflix inventory directly into their existing campaigns.
Why This Matters for Brands
At Code3, we know that accessibility and scale are everything when it comes to digital media buying. This shift matters because for a wide variety of reasons, including:
- Expands Reach in a Premium Environment. Netflix isn’t just another channel. In terms of streaming networks, one may argue it’s THE channel. EMarketer reports Netflix has higher paid memberships than all other streaming services, and generates the highest subscription revenue. It’s where highly engaged audiences spend hours consuming premium, long-form content, making it a unique opportunity for brands looking for high-impact ad placements.
- Streamlines Buying. Advertisers no longer need to manage Netflix separately. By plugging into Amazon DSP, you can consolidate campaign management, making optimization and measurement more efficient.
- Unlocks Advanced Targeting. Amazon’s DSP brings sophisticated audience data and targeting capabilities. That means you can apply the same robust audience strategies you use for other Amazon inventory to Netflix’s high-value environment.
- Levels the Playing Field. For many brands, Netflix felt out of reach. This integration democratizes access, allowing more advertisers to test and scale on the platform without jumping through hoops.
The Big Picture: The Streaming Wars & Programmatic Power
This move isn’t happening in a vacuum. The streaming wars have shifted from subscriber growth to monetization. As platforms compete for ad dollars, partnerships like this are inevitable. For Amazon, adding Netflix to its DSP strengthens its position as the go-to hub for streaming ad buying. For Netflix, it’s a way to boost revenue without building the infrastructure alone.
The bigger theme? Programmatic is becoming the connective tissue of streaming advertising. Instead of siloed platforms, we’re moving toward centralized access points where advertisers can manage cross-platform buys with efficiency and precision.
What Brands Should Do Next
This is where the “so what next” question comes in, and where Code3 can help you move from news to action.
- Reevaluate Your Streaming Strategy: If Netflix wasn’t part of your media mix before, it’s time to revisit. With easier access, it’s now a viable option for a wider range of budgets.
- Leverage Audience Targeting: Amazon’s DSP capabilities allow for granular audience segmentation. Consider how you can layer your brand’s first-party data with Amazon’s audience insights to maximize Netflix inventory.
- Test Early and Often: Don’t wait until Netflix inventory becomes crowded and competitive. Early movers often get better pricing and insights that set them ahead of the curve.
- Think Holistically: Streaming isn’t just about reach, it’s about impact. Align your Netflix strategy with broader full-funnel objectives, from brand awareness to conversions.
Netflix opening its doors to Amazon DSP is a milestone in the evolution of streaming advertising. It’s not just about Netflix or Amazon: it’s about the growing role of programmatic in shaping the future of media buying.
For brands, this is an opportunity to rethink streaming strategies, expand reach into premium environments, and gain efficiencies that weren’t possible before. The question isn’t if you should test it, it’s when. And the answer is: sooner rather than later.