The Drum’s Daily Briefing: Netflix’s ad server plans & news not ‘unsafe’ for advertisers
Our quickfire analysis of the brand, marketing and media stories that might just crop up in your meetings and conversations today.
Netflix aims to deliver targeted ads to its 270 million subscribers / Adobe Stock
Netflix hits 40m users on ad tier and announces own ad server
Netflix has surprised the advertising industry by launching its own adtech platform, challenging giants Google and Amazon.
The move, announced during its Upfronts, signals a shift in strategy, allowing Netflix to wield greater control over its ad experiences.
By embracing episodic campaigns and expanding partnerships with key players, including The Trade Desk, Netflix aims to deliver targeted ads to its 270 million subscribers.
The streaming giant also revealed that its ad-supported tier now boasts 40 million monthly users globally, showcasing rapid growth within just six months of its launch.
The strategic maneuver promises a new era of personalized advertising on the streaming platform.
Advertising next to news not ‘unsafe’
A new study from Stagwell has debunked brand safety myths, revealing that news ad placement is effective.
Having surveyed 50,000 US adults, it found that ads near politics or crime news perform as well as ‘safer’ content, such as sports or entertainment.
Mark Penn, Stagwell’s CEO, emphasized the untapped potential of news audiences for advertisers, saying that, despite concerns, ads near news topics, including politics or crime, don’t harm brand favorability or purchase intent.
The research highlights the importance of reevaluating brand safety metrics and investing in news to support quality journalism.
P&G shifting focus to individual products for Olympic ads
Procter & Gamble is planning a bold shift in its Olympic advertising this year, spotlighting individual brands over its corporate identity.
Known for tear-jerking campaigns celebrating athletes’ mothers, P&G will instead focus on products including Pampers diapers and Gillette razors, scaling back its prior emphasis on corporate values.
The move marks a departure from its emotional narratives, instead targeting consumers’ familiarity with specific brands.
Aussie SUV ad spend skyrockets despite new legislation
Despite new fuel efficiency standards, carmakers have been ramping up their advertising in Australia for SUVs and 4x4s, with a 29% expenditure surge in 2023.
The trend undermines efforts to promote electric vehicles and reduce emissions and climate advocates warn of the environmental impact as SUV sales soar to comprise over half of the market.
Ad spending on low-emission vehicles, meanwhile, has declined, highlighting a need for advertising restrictions and fuel efficiency disclosures.
While legislation aims to curb emissions and ‘greenwashing’ in ads, concerns linger about the industry’s push for profit over environmental responsibility. Pressure mounts for transparent emissions data in car advertisements.
ASA and CAP issue new guidance on podcast ads
New guidance from ASA and CAP addresses the challenge of making podcast ads clearly identifiable to listeners.
With the medium’s booming popularity, targeted consumer groups and high engagement levels have been attracting advertisers.
Research shows listeners prefer upfront labels like ‘paid-for advertisement’ or ‘sponsored,’ coupled with distinct sound effects.
The guidance, effective from August 16, 2024, emphasizes adherence to non-broadcast advertising rules.
As podcasts resemble radio, ensuring ad transparency is crucial. Marketers must avoid misleading content or causing harm.
The move aims to maintain trust and integrity in podcast advertising amid its rapid growth in the advertising landscape.