Core Insights - Amazon and Netflix have established an advertising partnership that allows marketers to utilize Amazon's demand-side platform to access Netflix's advertising inventory, reflecting a broader trend of ad dollars shifting from traditional linear TV to streaming services [1] - The new advertising offering will be available in multiple countries including the U.S., UK, France, Spain, Mexico, Canada, Japan, Brazil, Italy, Germany, and Australia starting in Q4 of this year [1] Amazon's Advertising Strategy - Amazon's demand-side platform (DSP) provides customers with enhanced choice and flexibility by utilizing first-party data and technology solutions aimed at increasing efficiency, with AI tools facilitating automated ad matching to audiences [2] - In 2024, Amazon's total ad revenue is projected to reach $56.2 billion, marking a 20% increase from 2023, as the company continues to expand its advertising presence, including running ads across all programming on Prime Video [3] Netflix's Advertising Approach - Netflix has seen growth in its advertising segment, with its ad-supported subscription tier reaching 94 million monthly users, although it does not disclose specific ad revenue figures [4] - The company is focusing on enhancing its ad capabilities, which were launched in 2022, and aligning them with popular programming to attract advertisers [4] Partnership Benefits - The partnership aims to simplify the advertising process for brands, allowing them to reach Netflix's subscribers and extensive content library through Amazon DSP, thereby reducing guesswork in TV planning and buying [5] - Netflix's President of Advertising emphasized that the partnership aligns with their goal of providing greater flexibility for advertisers, facilitating connections with a globally engaged audience [6]
Netflix And Amazon Set Advertising Alliance