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Netflix Programmatic Set to Boost Automated TV Buying in 2018

March 22nd, 2018   ||    by Melanie Brown   ||    No Comments

These days it seems like Netflix can do no wrong.

In the last few years, the streaming video service has invested heavily in producing original series, films, and specials spanning increasingly more genres. The Obamas are the latest in a line of high-profile individuals in talks with the media company about original programming, according to The New York Times. Now that Netflix is no longer just competing with the over-the-top (OTT) likes of Hulu and Amazon, but rather the film and TV industry at large, it had to shift its marketing strategy.

Netflix programmatic is slated to be one of those shifts, a potentially game-changing step for a company with the capital to invest in a powerhouse internal marketing and media team.

The Indicators

According to a letter to shareholders from April 2017, the company planned to spend more than $1 billion on its marketing efforts in 2017, with its main objective remaining the acquisition of new subscribers. This goal leaves Netflix with a wide range of tacks to take from a marketing standpoint, and the use of programmatic has been one of its biggest pushes on that front. Netflix tied its increase in programmatic spend to its goal to improve the “ability to do individualized marketing at scale, and to deliver the right ad to the right person at the right time.”

Countless other brands have adopted a similar programmatic strategy in other industries across the board. And while digital programmatic has been around for a while, the shift to data-driven advertising—including automated TV buying—in television and premium OTT video is still a relatively young practice. The industry as a whole is only just getting accustomed to the amount of available data for programmatic digital. With nearly 55 million U.S. subscribers, Netflix is primed to make the most of its data for programmatic TV as well.

In-house Netflix programmatic teams leverage Netflix viewership data to determine how to best market their original programming to existing subscribers. By using the data from those existing subscribers, they can determine the best course of action to obtain new subscribers via television or digital ad buys.

In Larger Context

Netflix is a great example of using data to inform media strategy and buying, and brands and advertisers can utilize this kind of data-driven strategy for programmatic TV and automated TV buying.

By collecting and analyzing in-house data, and layering in third-party data, whether from a provider like Nielsen or comScore or a smaller third party, brands can begin to learn more about their audiences’ viewing, online-reading, or purchasing habits, which can drive marketing strategy across various audience segments.

The more relevant and personalized your marketing is to the people you’re trying to reach, the more likely they are to get involved with your product or service.

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