Analyst: Netflix, Prime Video Well-Positioned to See Revenue Gains From Advertising Later This Year [Media Play News]

Analyst: Netflix, Prime Video Well-Positioned to See Revenue Gains From Advertising Later This Year [Media Play News]

BY ERIK GRUENWEDEL

April 3, 2024 | With Netflix about a year into offering ad-supported paid streaming, and rival Prime Video joining the fray in January, new data from Wedbush Securities suggests the two streamers could see positive revenue from advertising by 2025.

The Wall Street firm recently hosted a forum featuring advertising executive Sean Adams with GumGum, a platform for advertisers that provides intel, ad creatives, measurement, and optimization for online ad campaigns.

Adams expects that the growth of ad-supported video-on-demand (AVOD) distribution, increased programmatic ad buying, and advancements in ad measurement effectiveness to drive continued growth in the sector.

The executive contends that Netflix’s $6.99 monthly ad-supported SVOD option is gaining traction among consumers as it expands its capabilities by developing partnerships beyond Microsoft (i.e. Amazon’s CTV platform) that enhance its ability to analyze consumer data and offer more refined measurement and return on investment to marketers.

Read more on Media Play News.

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