Netflix ad growth is real, but marketers want more from its stack
Netflix’s ad business is growing fast, but marketers say measurement and partnerships still lag behind
Netflix has become a serious player in the ad-supported streaming game, but media buyers say it still needs to earn their trust before it can unlock larger budgets.
In the second quarter of 2025, Netflix posted a 16% jump in total revenue, hitting US$11.08 billion. That includes both subscription and advertising income.
Still, investors were underwhelmed. The stock slipped in after-hours trading, partly due to Netflix’s decision not to break out ad revenue in greater detail. For marketers, that lack of transparency reflects a bigger issue. Many are still unsure if Netflix’s advertising capabilities are on par with other major platforms.
This article breaks down what media buyers are saying, what Netflix is doing to improve, and what marketers should consider as they plan their CTV strategy.
Short on time?
Here’s a table of contents for quick access:
- Netflix’s ad revenue is climbing, but clarity is lacking
- Buyers see potential, but they want more proof
- What marketers should know before investing more
Patrecia Meliana
Netflix's ad revenue is climbing, but clarity is lacking
As of May, Netflix reported 94 million monthly active users on its ad-supported tier. Madison & Wall estimates the company will bring in US$3 billion in global ad revenue this year. That would make up about 7% of total earnings. Netflix is reportedly forecasting that figure to triple over the next five years.
For now, the streamer is positioning itself as a premium environment for advertisers. Its average CPM sits around US$30, which is down from launch but still above linear TV benchmarks. Buyers say that pricing feels more realistic today, especially given recent investments in live content such as NFL and WWE rights.
But Netflix’s refusal to offer more detailed reporting during its earnings call raised eyebrows. Without specific numbers or growth context, brands and buyers are left guessing just how effective Netflix ads really are.
Patrecia Meliana
Buyers see potential, but they want more proof
Many holding company buyers say Netflix is gaining traction in their media plans. One executive told Digiday it is now a top-five CTV partner. Another noted that client investment had doubled year-over-year, thanks to programmatic expansion through DSPs like The Trade Desk, Microsoft, DV360, and Yahoo.
Live content, premium programming, and smarter pricing are helping. PMG’s Natalee Geldert called Netflix a “standout winner” among ad-supported streaming platforms, especially as more brands shift traditional TV budgets into connected video.
However, there are still gaps.
Netflix lags in multi-touch attribution, contextual ad placement insights, and third-party validation. While it has signed deals with players like Nielsen, DoubleVerify, and iSpotTV, many buyers say they are not seeing the output they need to justify a major spend increase.
“They still aren’t where the largest streaming partners are in terms of measurement,” said one buyer. “They’ve made promises, but I want to see that come to fruition.”
What marketers should know before investing more
As Netflix becomes a more frequent line item in CTV budgets, marketers should weigh both the upside and the remaining roadblocks. Here’s what to keep in mind:
1. Measurement still needs work
Netflix has taken steps to improve tracking, signing deals with Nielsen, EDO Inc, Kantar, and others. But many buyers still want more transparency around viewership, brand safety, and contextual placement.
2. DSP access has improved
Opening up access to additional DSPs has made Netflix more accessible for programmatic budgets. But execution is not yet as seamless or automated as marketers are used to with YouTube or Amazon.
3. Strong content is not enough
Netflix’s content is compelling, from prestige series to live events. But marketers are asking for more than just inventory. They want reliable data, advanced targeting, and easy workflows to match what they get on other platforms.
4. CTV complexity is growing
As CTV spending rises globally, fragmentation is a real concern. Brands need cross-platform attribution tools to make sense of their investment across multiple streaming environments. Netflix still needs to show how it fits into that mix.
Netflix has made big strides in its ad-supported business. It now offers premium content, competitive pricing, and programmatic access across several markets. But for marketers, the platform’s next phase of growth will depend on proof.
Buyers want better measurement, more transparency, and deeper platform partnerships. Until those are in place, Netflix will likely remain a high-potential but mid-scale media buy for many brands.
Marketers should continue testing and tracking performance closely. The platform is no longer experimental, but it still needs to prove it can deliver consistent results across the full media funnel.
