As ads are coming to Netflix, The Business of Fashion reached out to our Chief Executive Officer, Aaron Edwards, to dive deeper into how this could be an opportunity for fashion brands.
Brands considering whether marketing on popular streaming platforms is an opportunity will want to carefully consider how they will spread their influence in a traditionally ad-free space.
“Ads are coming to Netflix. But whether they’ll be a boon or bust for fashion brands is the big question.
Fashion brands have been increasingly advertising on streaming platforms and Netflix has finally announced its intent to enter the space. At the Cannes Lions advertising festival in June, Netflix chief executive Ted Sarandos confirmed rumours that the streaming platform would add an ad-supported tier with a lower monthly fee.
Netflix’s new tier could present fashion brands with exciting opportunities to engage consumers. Though what that will look like in practice is still being determined, a Netflix spokesperson told BoF, as well as what value Netflix will be able to offer its advertising partners. It remains to be seen, for example, if fashion and beauty brands will be able to plug the commercials they’re already running on platforms like Hulu into Netflix. What’s more, the news of Netflix’s ad offering comes at a time of greater competition in advertising around premium streaming content, with prices having risen in turn. As well, subscriber numbers at Netflix have fallen as other platforms pump out high-wattage content.
To make advertising on Netflix worthwhile to fashion brands, experts say Netflix’s offering will need to be an improvement on existing advertising formats and the company will need to share data and audience insights, which it has historically guarded closely. How Netflix handles both will determine if this is the biggest advertising opportunity in streaming — or far from it.”
–Business of Fashion, Will Netflix Ads Be Worth It For Fashion?
Aaron shares his insight with BoF:
“Netflix has been an ad-free sacred space for consumers since their inception. This has been the platform where consumers are not inundated with advertising…”
“Brands who are daring to dabble in this space should be bold and thoughtful with their execution; it feels like a great opportunity to win hearts by being respectful.”
“I’d love to see brands treat this space nearly as they treat the Super Bowl. Let’s see some amazing content in a space where consumers have come to expect next-level entertainment.”
Read the full article here: Will Netflix Ads Be Worth It For Fashion?
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