Advertisers want in on Netflix (NFLX)

This story was delivered to BI Intelligence "Digital Media Briefing" subscribers. To learn more and subscribe, please click here.An increasing number of brands are looking to advertise on Netflix,Varietyreports.The growing demand comes as brandsseek to adapt to declining traditional TV viewership and a rise in cord cutting. Netflix accounted for40%of total over-the-top (OTT) US household viewing hours in April 2017, indicating the platform has become a home for cord cutters.Netflix has a strong aversion to ads, but there are other ways Netflix can allow brands to leverage their audiences without running traditional ad breaks:Product placement.Weaving products into programming is far less intrusivethan mid-roll ad might be. Product placement can also help shows feel more relatable and grounded in reality, because viewers can use these products themselves. For example, another SVOD platform, Amazon has done product placement in its show Hand of God, which incorporated real-estate listing company Zillow into the storywhen one of the characters looked to move.Merchandising.Streaming platforms could allow brands to create products based on characters and items from their most popular series. Manufacturing brands could create the products, which retail brands would distribute, and these companies would split the revenue from merchandise sales with the streaming platforms. Netflix has already pushed forward with this effort and began sellingStranger Thingsmerchandise in partnership with popular retailers.Meanwhile, Nielsen had begun to track viewership of Netflixs showsthis is information that brands should be very interested in.Nielsenrecently announcedit would start tracking viewership dataincluding age and number of viewersfor all of Netflixs programming. Netflix has been notoriously secretive about its viewership data, and with a better idea of how many viewers each show has, more brands may want the platform to showcase their products.To receive stories like this one directly to your inbox every morning, sign up for the Digital Media Briefing newsletter.Click here to learn more about how you can gain risk-free access today.Join the conversation about this story
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