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Netflix CPMs emerge
With a fast-approaching November launch date for Netflix’s ad-supported tier, details of how much advertisers will be paying for the premium environment are emerging – turns out it’s a premium fee.
Why it matters
The streaming wars have taken a sharp new turn into advertising as pandemic-era free time (and, for some, spare cash) meant streaming services could keep growing.
Now, with pressure on both companies and households, more democratic options are needed, with subscription fatigue driving more value-focused options. Yet, as sources tell the Wall Street Journal, Netflix’s premium content will carry premium CPMs. However, it’s not uncommon for new entrants to highball their initial asking prices.
Ad buyers speaking to the Journal report proposed CPMs (cost per mille, or cost per thousand impressions) of $65 – notably more than other streamers.
Spending per brand will also be capped at $20m, in an attempt to limit ad load and frequency.
In addition, the reports also confirm a November 1 launch date. Netflix wants brands to commit to a year’s worth of ad inventory, which can be more targeted than TV but at a less granular level than some online options.
Netflix’s comment on the reports stressed that “no decisions have been made”.