How Netflix went from $0 to $1 billion ad business

Plus: The retail media gold rush [Insider Intelligence]( [Emarketer Daily]([Emarketer Daily]( Charts. News. Analysis NOVEMBER 14, 2023 | By Sara Lebow, Arielle Feger, and Becky Schilling Ad-free options for streaming viewers are more expensive. Over the last several months, Netflix, Disney+, and others have been busy raising their subscription prices, swaying more subscribers to move to ad-supported viewing options. Learn more in our upcoming digital video forecasts and trends webinar. [Sign up today](. TOP STORY [Netflix Basic With Ads turns 1 this month. Here are all the new ad formats and a look at the tier’s health]( It’s been a year since [Netflix launched its “Basic With Ads” tier](, joining an increasingly cluttered landscape of ad-supported streaming platforms. Netflix leveraged a year of solid connected TV (CTV) ad spend growth, cost-conscious consumers, and Hollywood strikes that emphasized the value of a deep existing catalog to grow its ad supported plan to 15 million global monthly active users, according to a company post. Here’s a look at what’s new, what’s working, and what needs more attention at Netflix. [Netflix Basic With Ads turns 1 this month. Here are all the new ad formats and a look at the tier’s health]( [Keep reading]( NEWS AND VIEWS [Retail media spending grew 10% in Q3]( Our view: We’re bullish on retail media, projecting continued growth of over 20% each year through the end of our forecast period in 2027. Retailers and advertisers alike will not be backing off from this channel anytime soon. [Apple gets 36% cut of Safari deal, says Google witness]( Our view: We forecast Google’s worldwide search ad revenues to be $140.97 billion this year, which means Apple would be getting about $50 billion from Google in order to keep Google Search as the default on Safari. [Omnicom strikes first-mover AI deal with Getty Images]( Our view: AI-generated images are becoming the new stock images, and Omnicom and Getty want to get in on the action early. While AI-generated content poses brand safety and copyright risks, working with well-known names like Omnicom and Getty could woo advertisers. ANALYSIS [The CPG industry is one of the highest spenders on digital advertising, but the 2023 outlook is shaky]( Consumer packaged goods (CPG) companies spend more annually on digital ads than every cohort besides the retail industry. However, CPG digital ad spend growth underperformed compared with most other industries last year, and it will do so again this year. Next year is looking better though. [The CPG industry is one of the highest spenders on digital advertising, but the 2023 outlook is shaky]( [Keep reading]( THINGS TO KNOW 🎵 [TikTok’s newest feature lets you save favorite songs directly to Spotify or Amazon Music]( 🔎 [Google says major changes coming to search rankings]( 🧵 [Threads finally lets you delete your account separately from Instagram]( 👀 [A recap of all the drama in the SEO world about ‘ruining the internet’]( 💬 [First-gen social media users have nowhere to go]( PODCAST [Behind the Numbers: The Daily]( Amazon’s advertising accelerates, Bed Bath & Beyond’s comeback, and how Pinterest surpassed expectations. Tune in on [Apple Podcasts](, [Spotify](, or wherever you listen to podcasts. [Follow us on Instagram.Â]( [Listen in]( THE BIG QUESTION Think green: True or false? More than half of US consumers think protecting the planet should be a priority for everyone. [Get the answer]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2023 Insider Intelligence, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](