In 2022, many Streaming TV platforms that previously avoided ad-supported plans revamped their plans to offer more affordable tiers to consumers. Most notably, Disney+ and Netflix both launched ad-supported tiers in 2022, and it’s logical to assume that other apps and channels will follow suit.
The expanding OTT advertising options have shifted the Streaming TV landscape, allowing large advertisers even more opportunities to capitalize on large audiences. But what does this mean for smaller advertisers?
For small businesses, the ability to advertise on Netflix could seem as though it would offer unlimited possibilities. However, Netflix has announced $65 CPM (cost per thousand impressions) pricing and has reportedly asked agencies for $10 million annual minimum spend commitments i.
Additionally, Netflix’s initial rollout of the ad-supported service will not have third-party audience attribution with ads only able to be personalized through Netflix’s first-party data. Ads can be placed on specific shows, but not with the targeted geographic and demographic capabilities that many advertisers utilize Connected TV for.
While larger advertisers may be able to accommodate the limitations they’ll encounter with Netflix’s ad platform, for small businesses, there are greater advantages in alternatives. For small businesses to take advantage of OTT advertising, other Connected TV platforms provide more granular targeting capabilities that allow you to reach your exact target customer on the apps and channels they’re already watching. Awarity places ads on hundreds of top apps and channels including Pluto TV, Roku, Sling, Hulu, and more that achieve greater efficiency than Netflix.
Additionally, advertisers can achieve a much lower CPM, while reaching a more specific audience, utilizing platforms that place ads across a variety of top apps and channels. At Awarity, we place ads across hundreds of apps and channels with high viewership and quality placements on TV devices, and make TV advertising affordable for all businesses.
i. Variety: Netflix Confirms Ad Tier to Launch in November, Reveals Pricing for Cheaper Basic Plan