Netflix aims to double ad revenue, launch interactive advertisements in 2025
Netflix's in-house ad tech platform, Netflix Ad Suite, has been rolled out across all its ads market, including the US, Spain, Canada, and nine other countries.
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Netflix Inc has laid out its approach to enhance revenue through advertising initiatives in the current calendar year. "We’re pleased with the results, which are consistent with our goal to roughly double ads revenue this year," the OTT player mentioned in a statement.
During the Quarter 2 earnings call, the California-based company said that the company's in-house ad tech platform, Netflix Ad Suite, has been rolled out across all its ads market, including the US, Spain, Canada, and nine other countries.
Greg Peters, Co-Chief Executive Officer of Netflix Inc said they have witnessed increased programmatic buying--an automated way of buying and selling online ad space in real-time.
Notably, Netflix integrated search engine platform Yahoo's demand side platform (DSP) into its advertising ecosystem in June this year to expand programmatic access to its ad inventory.
"We’re gonna roll out additional demand sources like Yahoo that’ll further open up the market for us," Peters said.
He also noted that demand for leveraging advertiser and third party data sources have also increased lately. Peters said the focus will be on improving the overall ad experience for its users by implementing qualitative personalization.
Peters further revealed that the streaming giant will launch 'Interactive advertisements' in the second half of 2025.
The Co-CEO also hinted at leveraging generative AI technology for its ads business.
"It’s a high hurdle to create a brand-forward spot in a creative universe of one of the titles that we’re currently carrying. But it’s very compelling for both watchers and for those brands, and we think these generative techniques can decrease that hurdle iteratively over time and enable us to do that in more and more spots," Peters said.
On content strategy, Netflix emphasised it focuses on "local for local", which means developing shows and films that deeply connect with audiences in their home countries. Netflix also mentioned it will continue to invest in immersive, narrative games based on its IP.
Meanwhile, Netflix posted a revenue growth of 16 percent during the April-June quarter of 2025, reaching $11.08 billion, driven by high subscription fee, increased ad revenue and rise in membership. Additionally, it has updated its full-year revenue forecast to be around $44.8 billion- $45.2 billion, up from $43.5 billion-$44.5 billion.
