“We want to participate in the television ecosystem and be measured in the same way as traditional channels. » Netflix’s will is now clear, assured its new advertising director, Jeremi Gorman, during the conference The Future of TV Advertising Global, on December 7.
The world leader in subscription video on demand is ready to publish audience figures. We should therefore, in the long term, know the total viewing time of a film as Don’t Look Up, from the Serie Emily in Paris or of Lupinor even such and such an episode, just as we measure on TF1 or France 2 the success of a television film, television news or a football match. “We can compare apples to apples”, explained the leader.
In France, discussions have started with the Médiamétrie institute, but they should last several months, even a year. “It will take a little time,” warned Ms. Gorman.
Market pressures
For Netflix, this is a notable change of foot. For years, after its launch in France at the end of 2014, its leaders refused to give audience figures to the public and the press, which regularly asked for them. The platform was forced to let go of some ballast by sharing statistics with the companies producing its content. Then, she proposed a limited version giving figures for the “top 10” of the most viewed programs, by country.
If Netflix is now completing the conversion to the system that has been in place for decades in television, it is due to market pressures: after losing subscribers for the first time in early 2022, the subscription service broke down one of its dogmas by launching a cheaper version, with advertisements.
But advertisers demand to know how many viewers see their ads: “The value of Netflix’s offer will very much depend on its acceptance of a program audience measurement such as Médiamétrie in television”, thus warned, in September, in The world, Jean-Luc Chetrit, Managing Director of Union des Marques.
Launching in twelve countries on November 1, for 5.99 euros per month, the US platform’s foray into advertising is still in its infancy
Netflix has already signed initial partnerships with audience measurement institutes: Nielsen in the United States, Integral Ad Science and DoubleVerify (two tools for calculating the performance of advertisements), and BARB, in the United Kingdom. According to aggregate figures from this British equivalent of Médiamétrie, Netflix is there, in October, the third audiovisual channel, behind the BBC and ITV, but ahead of Channel 4.
Launched in twelve countries on November 1, for 5.99 euros per month, the US platform’s foray into advertising is still in its infancy. Its specialized team in the United States still numbers only seven people. The sale is entrusted to the Microsoft partner, which has sixty people in Europe. The recruitment of regional and national advertising managers is envisaged.
Risk of cannibalization
In France, large groups such as Tiffany (LVMH), Kering, Air France or Renault have purchased spots of 15 to 30 seconds. Netflix plans created ads to this for his service, but none have yet aired. Eventually, the service dreams of advertisers negotiating contracts with the producers of a program to use its universe.
On the targeting side, only the age and gender of the spectators are used for the time being, as well as the type of program (action film, etc.). In 2023, the location of customers will be added, to which other potential criteria will eventually be added.
Netflix does not currently publish any figures on the number of subscribers attracted by its offer including advertising, which is still very recent. Its profitability will depend in particular on the risk of cannibalization of its existing offers. In its first returns, Netflix is delighted that new customers are won over, but also had to note that people who already subscribed to more expensive offers were switching to the offer with advertising. These “switchers” would be partly motivated by price inflation which weighs on purchasing power, the company believes.