Netflix will start to show generative artificial intelligence (AI) ads to viewers starting in 2026, the streaming giant announced on Thursday (May 15), during its annual Upfront event.
Netflix announced it had created interactive mid-roll ads
Informing the advertisers, Netflix announced it had created interactive mid-roll ads and pause ads that incorporate generative AI, claiming it would create a “relevant” viewing experience for the customers.
The AI-generated ads will have added overlays
The AI-generated ads will have added overlays, call to action, second screen buttons, and more to serve the “right ad to the right member at the right time”.
They showcased an example where a product image was overlaid onto a background styled after Stranger Things. The move signals Netflix’s deeper push into immersive advertising, echoing strategies by competitors like Warner Bros. Discovery, but with a focus on generative AI to blend ads into familiar content environments.
The Netflix Ads Suite is a new advertising platform
The Netflix Ads Suite is a new advertising platform which is currently live in the US and Canada. Next week, it will be expanded in the Europe, the Middle East, and Africa (EMEA) region, and it is said to be available in all 12 countries where the ad-supported tier will be released by June.
Advertisers target their content to more than 100 interests
The new ad platform comes with various tools and features. It is said to let advertisers target their content to more than 100 interests in over 17 categories.
Additionally, they will also be able to tap into first-party data of Netflix, including users’ behavioral insights. It will also provide clients with first-party measurement solutions to let them see the traction from the ad campaigns.
“When you compare us to our competitors, attention starts higher and ends much higher. And even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves,” Ms Reinhard said.
“So if you take away anything from today, I hope it’s this: the foundation of our ads business is in place. And going forward, the pace of progress is going to be even faster,” she added.
