Netflix’s Impact on Streaming Ad Strategies

Netflix’s ad business is making a serious impact on the streaming market. The company is reshaping how ads are approached through upfront deals, enhanced ad tech, and new content opportunities. After some initial struggles a few years ago, Netflix’s ad business has seen significant growth recently.

According to Tim Peterson, Digiday’s executive editor for video and audio, Netflix has made impressive strides in the ad space over the past year. This progress is evident in the company’s revenue, which reached $12.25 billion, up 16.2% from the same quarter in 2025.

The turnaround for Netflix’s ad business began in 2024 during the Christmas Day NFL coverage. Since then, Netflix has been expanding its advertising reach and offerings. The platform is now offering joint business planning deals to more advertisers, encouraging them to increase their spending on the platform.

Netflix’s programmatic buying has also seen significant growth, especially after bringing its ad platform in-house last year. Half of Netflix’s non-live ad revenue now comes from programmatic buying via third-party DSPs like Amazon, Google DV360, and The Trade Desk.

With pricing dropping from $60 to the low $20s CPM, Netflix is becoming an attractive option for advertisers looking to target CTV and TV audiences. The platform is also focusing on unique custom commercials and major live events to drive its ad strategy forward.

Looking ahead, Netflix is positioning itself for further growth. The platform may consider becoming a primary NFL rights holder, hosting more live events, or creating its own DSP. With its recent ad business improvements, Netflix is well-positioned for upcoming upfront negotiations.

While traditional TV still dominates the upfront market, companies like Netflix are reshaping how these deals are structured. By continuing to innovate and expand its offerings, Netflix is set to disrupt the streaming ad market and solidify its position as a key player in the industry.