The changing world of CTV advertising
In a world where every new advertising trend is hyped as the next big breakthrough, only to fall short, Netflix appears to be one of the few that actually delivers, with the numbers to prove it. Their recent announcements show that CTV is a huge opportunity in the paid space.
What’s new with Netflix Advertising?
A recent article in AdWeek covered new statements from the streaming giant, particularly highlighting the massive improvements to Netflix’s advertising opportunities that have come under the helm of new President of Advertising, Amy Reinhard.
According to AdWeek, Netflix’s active user base grew 367% in her first year (from 15 million to 70 million active users), and it’s still booming. At Netflix’s 2025 upfront event, she announced that the company now has 94 million active users, a 34% increase over six months.
But those impressive numbers weren’t the only highlight from Netflix. Reinhard also emphasised that Netflix users are significantly more engaged with the platform’s content compared to competitors, proudly noting:
“members pay as much attention to mid-roll ads as they do to the shows and movies themselves.”
The company is also launching its new Netflix Ad Suite, already live in the US and Canada and spreading to all the company’s 12 ad-supported countries in the near future, which includes expanded consumer data and segmenting by life stage, interests, and moods. They also have plans to optimise their algorithm with AI, add new targeting and measurement, and innovate on more ad formats.
Needless to say, this is all music to advertisers’ ears.
The CTV revolution and the era of second-screening
This jump in Netflix users speak to the fact that we are moving towards a digital world in which video is everything. Afterall, 2024 saw 5.2 billion CTV impressions and 72 billion online video ad impressions just in the month of July in the UK alone, according to Microsoft’s internal data.
Plus, we have now reached the era of second screening. A study from Insider Intelligence Trends found that 90% of Gen-Z adults in the US use the internet while watching TV. This is not just a trend among young people, though. A similar study from Global Web Index saw that 80% of users read the news online while watching TV. People will now be scrolling past your ads on their phone, while consumed in their favourite drama on Paramount+ or Channel4, so everyone in the performance marketing space now needs a video strategy.
The most effective campaigns are those that consistently reach their ideal customer profile (ICP) across the right mix of channels. The modern approach is to connect with your audience wherever they are, whether they’re streaming on their smart TVs or scrolling on their tablets and phones.
Early research shows that this strategy helps drive brand lift across the sales funnel. One internal study from Microsoft and Roku found an 18% lift in click-through-rates on audience ads and a 9% lift in brand searches after running CTV ads. It’s not world-ending, but it clearly demonstrates that video can work in tandem with more traditional ads to push prospects through your sales funnel.
What this means for PPC agencies
So, Netflix has a ton of highly engaged users and amazing audience segmenting, and video strategy is becoming essential for all performance marketers. All of this is well and good for the big guys who have millions to spend on CTV advertising, but for smaller agencies or brands all of this remains out of reach, right?
This was certainly the case a few years ago. Netflix and other premium streaming services were charging millions for a slot in their mid or pre-roll placements, but now, through Microsoft Advertising, brands can get in on the action with no minimums on streaming services like Netflix, Disney Plus, HBOMax or ESPN.
The world of CTV and video is changing, democratising. Now, so long as you have high quality assets that meet CTV requirements, you can get your ad onto the world’s leading streaming services, which are growing and innovating every day.
If you are interested in learning more about how to advertise on CTV, email grow@diginius.com .
Diginius supports over 1000 PPC agencies in 60 countries via our Microsoft Advertising Agency Partner Program. If you want to learn more about advertising on Microsoft, feel free to check out our program.
