As Netflix celebrates the one-year anniversary of launching its advertising business, it is expanding the programmatic side of this business. Netflix is currently in discussions with ad buyers about allowing them to purchase ad inventory through demand-side platforms (DSPs) other than Microsoft-owned Xandr’s DSP. These talks are in the early stages, with no set timeline. However, the option would be limited to programmatic private marketplace deals, not the broader programmatic open marketplace.
While Netflix’s spokesperson declined to comment, reports suggest that Netflix’s deal with Microsoft, initiated in July 2022, was set for two years, and Netflix is exploring alternative ad tech options. Advertisers have, until now, been limited to using Xandr’s DSP to buy Netflix’s inventory programmatically in 12 countries.
However, some advertisers and agencies are not thrilled about this restriction. They prefer managing their ad buys through a single DSP, especially those who use non-Xandr DSPs for non-Netflix ad purchases. The concern is that using Xandr’s DSP provides a discount but limits the ability to coordinate ad buys across different platforms.
Netflix’s move to open up programmatic buying to non-Xandr DSPs could be seen as a positive step to attract more ad dollars. Currently, the data shared by Xandr’s DSP is limited, hindering advertisers from effectively managing ad frequency across households.
Despite potential data limitations, opening up to non-Xandr DSPs might encourage more brands to invest in Netflix advertising. Advertisers have expressed concerns about the limitations imposed by Netflix, and offering greater flexibility could enhance Netflix’s appeal in the ad market.
In summary, as Netflix marks its first year in the advertising business, the company is exploring ways to expand programmatic buying options beyond Xandr’s DSP, addressing concerns and potentially attracting more ad revenue.
Nevertheless for so far the programmatic inventory for Netflix ads remains solely accessible via Xandr DSP in 12 Countries.
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