Dive Brief:

• Netflix's ad-supported plan now has 40 million monthly active users, with more than 40% of all signups in ads markets picking the plan, according to details around its upfront event shared with Marketing Dive.
• The Trade Desk, Google's Display & Video 360 and Magnite will join Microsoft this summer as Netflix’s main programmatic partners for advertisers, and the streamer announced plans to launch an in-house ad tech platform.
• Netflix also announced a slew of new content, including two NFL Christmas games, and a slate of new measurement partners as it boosted its pitch to advertisers at its second upfront.

Dive Insight:

Netflix's ad-supported business is booming, with its global monthly active users surging to 40 million — after coming in at just 5 million a year ago — and nearly half of all signups picking ads plans where available. Along with outlining a massive slate of new content, Netflix used its first-ever in-person upfront to update advertisers on its growing ad offering.

As connected TV measurement continues to be a hot topic for advertisers in the streaming age, Netflix added new partners Affinity Solutions, iSpotTV, Kantar, Lucid, NCSolutions and TVision to a list that already includes Nielsen, EDO, DoubleVerify and Integral Ad Science as advertisers work to measure and verify the impact of their campaigns.

This summer, The Trade Desk, Google's Display & Video 360 and Magnite will join Microsoft as Netflix's main programmatic partners. Down the road, Netflix plans to launch an in-house ad tech platform to give advertisers new ways to buy ads, leverage insights and measure impact.

“We’re being incredibly strategic about how we present ads because we want our members to have a phenomenal experience. We conduct deep consumer research to make sure we stay ahead of the competition, bringing opportunities that are better for members and better for brands,” said Amy Reinhard, Netflix’s president of advertising, at the event.

Those measurement partners are already demonstrating how advertising works on Netflix's ad-supported tier, where members have a higher household income and are younger than linear TV audiences, with a median age of 37, per details shared by the company. More than 70% watch for more than 10 hours a month — 15% higher than the nearest competitor, per Nielsen — and more than half watch for more than 20 hours a month. Plus, Netflix members are around twice as likely to respond to an advertisement on the platform compared to other streaming services and linear TV, per EDO.

“Our audiences are highly engaged — and by engaged I mean that they are choosing to spend their time watching Netflix. That’s important because engagement is the key to success in streaming. When people watch our shows and movies, they get more value from Netflix, they stick around longer, and they’re more likely to recommend us to their friends. And this matters to all of you because you want to be where the audiences are, too," Bela Bajaria, Netflix's chief content officer, said at the event.

As for content, Bajaria and her team have assembled a slate that spans TV, film and live sports. Netflix this year will broadcast the NFL's two Christmas Day games, and will be streaming at least one holiday game each year as part of a three-season deal. Streaming competitor Amazon also made exclusive NFL games a part of its upfront ad pitch.

Along with returning favorites "Squid Game" and the upcoming Jake Paul vs. Mike Tyson boxing match, Netflix in 2024 will roll out series that span drama, comedy, unscripted, documentaries and sports, including "Golf," Will Ferrell's first scripted comedy series. Upcoming films include a sequel to Adam Sandler's iconic comedy "Happy Gilmore," a new entry in the "Beverly Hills Cop" franchise and a new film from Oscar winner Kathryn Bigelow. The company described the impact of its content on culture as "the Netflix Effect."

“It starts with wonderful stories that become unmissable moments for millions of fans,” CMO Marian Lee said at the event, noting how the platform's ads plans and live events open more opportunities for advertisers. “We’ll help you reach more fans and give you more access on-screen, off-screen, and during some of our biggest moments.”