Has the time come for Netflix to start running ads?
Netflix needs to entertain advertising — at least that’s the view on Madison Avenue.
As online video viewing explodes and linear TV- watching comes under pressure, marketers are making the case that the Internet streaming video giant should drop its aversion to ads and embrace brands.
While Netflix’s subscription, ad-free service is popular with consumers, it’s not a stretch to think it could go from hits like “Orange is the New Black” to, say, Oreo cookies. Indeed, snack food giant Mondolez is said to have pitched Netflix on the idea, sources said.
Netflix is sitting on a massive stash of consumer data that it can mine to help advertisers tailor their pitches. For years Netflix has been analyzing what people watch to suggest movies or TV shows and can apply that same formula for marketers.
“The opportunity is there for targeted buying,” one source said. “People will pay a premium for the consumers they really want. If you watch a lot of car shows you might be interested in car ads. ”