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Netflix is going to build its own ad server to compete with Google and Amazon.

Only a year and a half after joining the advertising industry, Netflix said at its Upfronts presentation on Wednesday that it is introducing its own advertising technology platform. Its actions set it apart from other business titans like Google, Amazon, and Comcast, which also have ad servers.

The news represents a major reorientation of the streaming behemoth’s advertising strategy. In order to create its ad technology, the business first teamed with Microsoft. This allowed Netflix to join the market swiftly and catch up with competitors like Hulu, which has had its own ad server for more than ten years. 

With the introduction of its own ad technology, Netflix is well-positioned to seize complete control over its advertising future. This calculated step will enable the business to design customised and focused advertising experiences that appeal to its enormous 270 million members. 

“Bringing our ad tech in-house will allow us to power the ad plan with the same level of excellence that’s made Netflix the leader in streaming technology today,” said Amy Reinhard, head of advertising for the company. “We want our subscribers to have an amazing experience, so we’re very smart about how we deliver advertisements.” To ensure we stay one step ahead of the competition and provide chances that benefit both members and businesses, we carry out extensive consumer research.

Netflix likely won’t be using generic ads, despite the unclear nature of its in-house solution. The Financial Times reports that Netflix intends to test “episodic” advertising, which creates a narrative via a sequence of advertisements as opposed to presenting the same ones over and over again. 

Netflix also announced during the presentation that it would be extending its purchasing capabilities this summer, adding The Trade Desk, Google’s Display & Video 360, and Magnite as partners. The Trade Desk and rival Disney+ have an advertising deal, interestingly. 

With 40 million active members worldwide each month, Netflix has also hailed the success of its ad-supported tier. Six months after it debuted, the ad tier had almost five million users. 

Juliet P.
Author: Juliet P.

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