Netflix, trying to increase ad reach, changes in monthly active viewers
Netflix wants to add another kind of metric to its ever-evolving stack of audience measurement tools.
The streaming giant plans to introduce a new measure for advertisers that will track how many of the 190 million monthly active viewers at its ad-supported tier see a specific commercial, the company’s advertising director Amy Reinhard announced Wednesday. Netflix defines monthly active viewers as “members who watched at least one minute of ads on Netflix per month, multiplied by the estimated average number of people in a household,” a figure derived from Netflix’s own research.
In recent years, Netflix has based its measurements on account profiles, or users, rather than the number of people in a home who subscribe to the service. In May, the company said its ads reached 94 million monthly active users, up from 70 million in November 2024. The move to members of a household, rather than just an account, will clearly increase the number of viewers Netflix appeals to potential sponsors — though it remains to be seen how much credibility the new metric will lend to Madison Avenue.
This development comes as Netflix strives to become more competitive against its competitors in the battle for Madison Avenue advertising dollars. While the company’s strength in developing compelling content is undeniable, Netflix has less experience than many traditional media conglomerates when it comes to ad sales. The company is building out a lineup of live specials and sporting events, while the bulk of its offerings are scripted drama, comedy and movies – the kind of stuff viewers often stream alone, at times of their choosing, rather than together, which is still what many advertisers crave.
That dynamic has limited Netflix’s ability to take advertising dollars from Disney, NBCUniversal and other media companies with hours of live sports to sell, media buyers said. These buying executives indicate that advertisers are certainly interested in Netflix’s progress in selling ads, but note that the company has likely had more success in securing sponsorship deals for individual titles than in just selling tonnage of its inventory.
In recent months, Netflix has experimented with a talk show hosted by John Mulaney; struck a deal with TKO’s WWE to stream “Monday Night Raw”; and secured the rights to the NFL’s Christmas Day games. People familiar with the matter expect Netflix will soon unveil a deal with Major League Baseball that would give the streamer rights to show both the annual Home Run Derby and the Opening Day game.
Netflix also has measurement agreements with Nielsen, iSpot and Kantar in the US, and other measurement providers in various parts of the world.
The company is also developing a range of advertising options around programs that are likely to be viewed by a larger audience within a specific time frame. Netflix will show the finale of ‘Stranger Things’ and a new season of ‘Emily in Paris’ in the coming weeks.
Peroni Nastro Azzurro has a deal to sponsor ‘Emily’ in the US, while FanDuel, Verizon, Accenture and Tide, among others, will sponsor the NFL games. Meanwhile, “Stranger Things” will benefit from multiple ad tie-ins. PepsiCo will unveil a custom flavor of Doritos and revive its Gatorade Citrus Cooler. Target will also sponsor the show in the US. In Latin America, Fiat will offer a car with ‘Stranger Things’ themes. Nestle will unveil cookie packaging tied to the series, and Unilever will introduce a new flavor of Hellmann’s.
