23 August 2024

Netflix inventory available in DV360

In summary

• Netflix has confirmed that its inventory is now available to purchase across the US market in DV360
• This update provides more avenues for advertisers wanting to access Netflix inventory, previously accessibly only via Microsoft’s Xandr.

Netflix expands access to its inventory

Netflix has confirmed this week that its inventory is now available to purchase across the US market in Display & Video 360 (DV360) via private marketplace deals. These will be expanded into programmatic guaranteed opportunities in November 2024. Impression measurement is now also available in Campaign Manager 360 for Netflix ad activity. Previously Netflix inventory was accessible only via Microsoft (via Xandr), this shift sees DV360 joining Xandr as key programmatic partners of Netflix.

Netflix’s supply addition to DV360’s inventory comes at a time where many streaming providers, alongside the tech giant, are providing ad-supported tiers, allowing users the active choice in receiving ads for the benefits of lower subscription pricing.

Adoption of such ad-supported tiers has resulted in increased ad supply opportunities for advertisers. On a broader scale, the ad-tech industry has seen consumer behaviour trending towards on-demand video options including subscription video-on-demand (SVOD), where SVOD revenue has been forecasted to grow by 6.7% (CAGR) from 2023-2028 (Seizing growth opportunities in a dynamic ecosystem, PWC 2024).

This growth has and will continue to be driven by the boom in CTV viewership, where consumer adoption of streaming devices and smart TVs positively influence SVOD uptake, due to ease of access and increased awareness of services, for example, via preferential CTV app placements. As such, access to high quality streaming inventory is more relevant than ever for advertisers.

How does this impact advertisers?

Advertisers can expect to see the follow benefits with this update:

• Consolidated video buying opportunities: Access to Netflix inventory opens up opportunities for DV360 advertisers to take advantage of consolidated video buying practices across a range of video formats now available within the DSP. A combination of SVOD, BVOD and YouTube can be used to optimise towards mass reach with holistic frequency capping practices. 
• Increased addressable/quality supply liquidity: Netflix’s inventory expansion into various DSPs have come at a time where the supply of video-on demand options for consumers are consistently increasing, and the entry of competitors such as Paramount + and Amazon Prime into the Australian market have and may continue to cause an observed decline in CPMs across Netflix inventory alongside other SVOD providers such as Binge. 
• Brand positioning: Netflix’s PMP and soon to come PG deal opportunities will allow advertisers to take advantage of its heightened targeting and effective reach capabilities for purposes relating to brand positioning and alignment, share of voice and more. 

Louder’s recommendation

Consider Netflix as part of your unified buying approach across video inventory. For Australian advertisers, watch this space and keep an eye out for availability in the near future.

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