Netflix In-Houses Adtech: Buyers Seek Better Attribution, Granular Targeting, Programmatic

May 29, 2024 at 10:07:57 AM

TL;DR Netflix is in-housing its adtech to address buyers' needs for better measurement, advanced targeting, and programmatic buying. Currently, Netflix's ad capabilities lag behind competitors, but it plans to launch its own ad server by 2025 and partner with The Trade Desk, Google, and Magnite. Buyers seek improved attribution, conversion metrics, and more programmatic inventory. Netflix's innovation reputation offers hope for overcoming CTV adtech challenges.

Netflix In-Houses Adtech: Buyers Seek Better Attribution, Granular Targeting, Programmatic

With Netflix in-housing its adtech, buyers are hopeful for improvements in programmatic capabilities. Currently, Netflix lacks essential features like measurement, advanced targeting, and biddable programmatic inventory. Netflix plans to release its own ad server by 2025 and integrate with platforms like The Trade Desk, Google, and Magnite.

Challenges in CTV Adtech

Connected TV adtech faces issues such as frequency capping, content transparency, fragmentation, and ads playing when TVs are off. Despite these challenges, Netflix is known for its innovation in TV technology.

Buyer Expectations

Attribution

Buyers want better attribution data to link ad viewership with business outcomes. Improved measurement capabilities are anticipated, partly due to Netflix's partnership with iSpot.

Comparison with Other Media

Brands seek attribution data to compare Netflix buys with other media. They also want to combine brand and performance signals, which has become harder with the decline of third-party data.

Programmatic Buying

More Netflix inventory is expected to be available programmatically, starting with programmatic guaranteed and private marketplace deals. This could lead to increased buying opportunities for brands.

True Programmatic Auctions

Some buyers hope Netflix will engage in true programmatic auctions, where the best inventory is based on the best bid. However, valuable data for attribution may not be included automatically.

Conclusion

While buyers are optimistic about Netflix's adtech advancements, they remain realistic about the challenges, especially in measurement and attribution.