What Marketers Should Know About Netflix Advertising in 2025

A Streaming Powerhouse Now Selling Ads

Few platforms have reshaped television like Netflix. Beyond scripted series, the company has stepped into live events and sports, securing rights to NFL games and bringing WWE Raw exclusively to streaming. Iconic dramas like Squid Game and fan-favorite comedies such as Nobody Wants This pull in tens of millions of viewers, while limited series like Adolescence regularly surprise with breakout success. According to Nielsen multiplatform data, half of the most-watched non-sports shows in the U.S. are on Netflix.

With this audience dominance, Netflix’s move to introduce an ad-supported subscription plan (its “Standard with Ads” tier) marked a major pivot. For years, the streamer resisted ads, positioning itself as the premium, ad-free alternative. That stance changed in late 2022, and advertisers now have direct access to one of the largest and most loyal streaming audiences in the world. Below you'll find what marketers should know about Netflix advertising in 2025.

Why Netflix Shifted to an Ad-Supported Model

The introduction of an ads-included subscription was driven by business pressures and market realities:

• Subscriber saturation: Growth slowed in core regions, making it harder to expand using the ad-free model alone.

• New revenue streams: An ad-supported plan creates additional income while offering a cheaper price point ($7.99/month in the U.S., compared to $17.99 for the standard ad-free tier).

• Password sharing crackdown: By introducing a lower-cost tier, Netflix nudged password sharers toward becoming paying subscribers.

  
  

The strategy is working. As of early 2025, the ad-supported plan surpassed 94 million global monthly active users, gaining more than 20 million in just a few months. Importantly, this tier reaches more 18–34-year-olds than any U.S. broadcast or cable network, according to Netflix.

Since its introduction in November 2022, the ads-included tier has grown quickly, reaching more than 94 million monthly active users worldwide, an increase of over 20 million since November 2024. Netflix has also reported that this plan attracts more 18- to 34-year-olds than any broadcast or cable network in the U.S. Importantly, these subscribers are not casual: research shows that ad-tier users tend to be more loyal, with higher retention than those on competing platforms like Prime Video or YouTube.

What Marketers Should Know About How Netflix's Advertising-Included Plan Works in 2025

The Netflix “Standard with Ads” plan is built as a lower-cost subscription tier that integrates commercials into programming. For marketers, understanding the details is essential.

• Extra members: Only available with Standard and Premium plans, allowing households to add users outside of their home for an additional fee.

• Library access: Most of the Netflix catalog is included, though some licensed titles remain unavailable with ads.

• Ad experience: Commercial breaks appear during shows and films. Users often report that the ad load is lighter than on competing ad-supported platforms.

• Trial policy: Netflix currently does not provide a free trial for any of its subscription tiers.

Netflix emphasizes the premium nature of this experience. The ad load averages just 0.9 minutes per hour, with the self-reported maximum still under five minutes. This results in fewer interruptions and higher brand visibility compared to more cluttered platforms. On average, subscribers spend 43 hours per month on Netflix, more than any other subscription streamer. Engagement tends to increase as sessions extend, with the strongest ad attention occurring after three or more consecutive hours of viewing.

Extending Reach Beyond Linear and Cable Audiences

One of the most valuable aspects of Netflix’s ad tier is its ability to connect with audiences that have largely abandoned traditional television. Netflix reports that 41% of ad-supported subscribers do not watch any linear TV at all. In addition, 67% of subscribers lack a cable or satellite package, and that number rises to 70% for those on ad-free tiers.

This represents a demographic that is extremely difficult to access via conventional channels. Internally reported subscriber data from Q1 2025 shows:

• 49% are married.

• The median household income is $103,000, with 44% earning over $75,000 annually.

• 32% have children living at home.

• The average age is 40, with 67% between the ages of 18 and 49.

• 71% hold a college degree or higher.

Key Realities and Overstatements About Netflix Ads

Netflix’s Strengths Are Clear

• Large, engaged audience: Viewers are loyal and highly attentive, with research showing Netflix ads outperform average CTV benchmarks for brand lift and purchase intent.

• Targeting capabilities: Options include demographics (age, gender, region) and contextual categories (genre, show type).

• Unskippable units: Ads must be watched in full, unlike skippable formats on YouTube or fast-forwarded cable DVRs.

The Limitations Matter Too

• Scale of ad inventory: While adoption is rising quickly, inventory volume is still limited compared to Netflix’s overall audience size.

• Advanced targeting depth: Beyond demographics and content alignment, behavioral and psychographic targeting options remain under development.

• Measurement clarity: Reporting is still maturing. Netflix has partnered with Nielsen and EDO, but advertisers note gaps in transparency and direct attribution compared to other programmatic platforms.

Netflix’s Big Cultural Moments

Netflix’s transition into live programming has already generated landmark events, proving its capacity to capture massive, real-time audiences.

Mike Tyson’s highly anticipated return to the boxing ring on November 15, 2024, held at AT&T Stadium in Arlington, Texas, was rescheduled from earlier in the year but still became a global sensation. According to internal data, the event drew 108 million live viewers worldwide, with 65 million concurrent streams globally, including 38 million in the U.S. More than 60 million households tuned in live, and during the fight’s peak, 56% of U.S. viewing between midnight and 1 AM EST was for the event. Across social channels, the fight generated 1.4 billion impressions and saw a 121% surge in emotional engagement once the bout began.

Netflix’s first NFL broadcast on Christmas Day brought in another record, reaching 65 million U.S. viewers. Notably, 30 million tuned in specifically for Beyoncé’s halftime show. With an agreement to stream at least one holiday game through 2026, Netflix has positioned itself as a serious player in live sports.

The January 2025 debut of WWE’s Monday Night Raw under a 10-year, $5 billion exclusivity agreement shifted the iconic program from cable to Netflix for the first time in 31 years. The premiere episode drew 4.9 million global views within 24 hours and averaged 2.6 million U.S. households, more than double the 2024 cable average of 1.2 million. The adults 18–49 demographic more than doubled year over year, highlighting the potential for advertisers to reach younger audiences through sports and entertainment crossovers.

Ad Formats Available on Netflix

Netflix has gradually expanded its ad offerings to provide advertisers with flexibility in both creative and placement.

• Standard video ads are available in the typical 15- and 30-second lengths, with options ranging from shorter 10-second units to longer formats of 60 to 90 seconds. Ads can appear before, during, or after programming.

• Pause ads represent one of Netflix’s unique innovations. When a viewer pauses a show or movie for more than five seconds, a full-screen branded placement appears alongside key art. This approach provides visibility during natural viewing breaks without interrupting the flow of content.

• Premium sponsorships allow brands to align with the launch of major series or seasons. Packages often include custom six-second bumpers paired with non-skippable pre-roll ads. Investment levels generally fall between $500,000 and $1 million, though larger commitments can exceed $4 million. Sponsorships cover inventory in the first 28 days of release and may be supplemented with run-of-schedule placements that can stretch across multiple months.

• Live event inventory extends to all Netflix subscribers, including those on ad-free plans. This ensures maximum reach during high-profile broadcasts such as NFL games or major cultural moments.

Targeting Options for Campaigns

Netflix’s targeting framework is still evolving, but it already includes a wide array of options designed to help brands reach the right viewers.

• Contextual:

  • Top 10 targeting — placement within Netflix’s daily top 10 series and films.

  • Genre targeting — exclusive categories such as Drama, Comedy, Thriller/Horror, Family, LGBTQ+ Stories, and more.

  • First impression — ensuring an ad is the first seen by a member in a given day.

  • Viewing moods — profiles assigned to moods like Learn, Escape, Suspense, Unwind, Romance, Adrenaline.

  • Interest targeting — based on historical viewing behaviors, tied to lifestyle themes like sports, music, food, or travel.

• Demographic & household: Age, gender, income, family status.

• Geo: Country, DMA, state, ZIP code.

• Device & language: CTV vs. mobile/desktop; English and Spanish language targeting.

Premium Sponsorship Opportunities

For marketers seeking maximum impact, Netflix provides elevated opportunities through sponsorships and event integrations.

• Single-title sponsorships: Align with a major show debut, featuring bumpers and exclusive pre-roll in the first 28 days of release.

• Event integrations: Large-scale sporting or cultural broadcasts provide broad exposure across all tiers.

• Creative flexibility: Frequency caps are minimal, and creative rotation is supported.

  
  

These opportunities allow brands to associate with cultural moments while ensuring high share of voice.

Measuring Campaign Performance

While measurement on Netflix continues to evolve, advertisers typically track:

• Impressions

• Completion rate

• Viewability

• Reach & frequency

• Genre-level performance

• Geographic delivery

  
  

Third-party partners like Nielsen help benchmark performance, but advertisers should note that Netflix’s reporting remains more limited compared to other CTV and programmatic platforms.

When Netflix Fits Into the Media Mix

Netflix can be a strong addition to a brand’s television strategy, but it isn’t suited to every objective.

Strong use cases for Netflix advertising:

• Campaigns designed for brand awareness and incremental reach.

• Budgets that support testing premium sponsorships and tentpole events.

• Advertisers wanting to align with Netflix’s prestige content and sports coverage.

Less ideal use cases:

• Performance-driven campaigns requiring direct attribution and ROI optimization.

• Marketers who prioritize self-serve buying platforms and granular targeting.

• Brands constrained by smaller budgets, given Netflix’s premium pricing.

Conclusion: Netflix as a Premium but Evolving Ad Platform

Netflix’s pivot into advertising underscores a larger industry reality: ad-supported streaming is now mainstream. The company offers unskippable ads, unmatched reach into younger cord-cutting audiences, and the prestige of aligning with premium programming. At the same time, advertisers must balance enthusiasm with pragmatism: inventory depth, measurement transparency, and targeting sophistication are still maturing.

For most marketers, Netflix should be viewed as a premium awareness layer within a broader CTV strategy — powerful when combined with other platforms that deliver flexibility, transparency, and outcome-driven measurement.