Netflix and Ads: How Streaming Changed the Rules of Marketing
- martinagvisionfact
- Sep 23
- 3 min read
Author: Gabriela Kalinová
Introduction
Streaming has changed significantly over the course of history. Owning a television was not always common, and when it became more common, advertisements began to appear. Television advertising became very strategic, and brands began to compete for the best advertising spots. Just like today. It was common to watch a movie and see commercials in it. The only way to avoid commercials was to rent a DVD. The launch of Netflix changed the game. It didn't just offer movies. It offered an unlimited number of movies, no commercials, and the choice of which movie to play was entirely up to you. So how did this change marketing strategy?
The end of traditional ways
As I said, throughout the 20th century, television was more or less free. And that's what people want. But getting something for free comes at a price. And in this case, that price is advertising. Everyone agrees that ads are annoying, and no one wants to see them in the middle of their favorite show. But they are also the reason why watching television is free. Brands pay large sums of money to get into certain television programs, and that money finances television programs. But what if someone decides to turn that around and makes you pay for zero ads? At first, it may sound ridiculous because you didn't have to pay anything before. But when you try it, you realize all the benefits and why you have to pay for it. The platform focuses purely on the user experience, which is uninterrupted, ad-free, and without forced attention. People began to feel like they were customers and not a product of brands. It was as if the platform worked for them and not the other way around. That's why it immediately became a global hit. Marketing had to change because it could no longer rely on ads played between movies. They had to find a way to reach Netflix customers.
Advertising on Netflix
Brands had to go a long way to find how to promote their Brand on Netflix and how to partner up with them. There are three main ways to do it. First is product placement, then marketing tie-ins and lastly merchandising. Product placement is very popular. Brands have to work with production of Netflix on set of shooting some movie or tv show- Some productions do it in a clever way Duffer Brother did with Ego waffles, KFC Chicken and New Coke in tv show Stranger Things. But some product placements are normally part of the show just like in reality shows. People eat the food from the brand, or they have phones or cars from that brand for example like the GMC pick up trucks in the show Queer eye revival. Sometimes it is a creative decision by the creators, other times it is a collaboration between the production team and brands. Netflix does not usually sell advertising space directly but oversees approvals and sometimes develops product placement into broader campaigns. The second model, marketing tie-ins, are partner events outside of the content itself. An example is Coca-Cola's collaboration on special edition cans and Baskin-Robbins' "Scoops Ahoy" pop-up stores. These activities strengthen both the brands and the series itself. The third type is merchandising and it involves successful titles such as Stranger Things and Big Mouth, which have become independent brands and spawned clothing, sneaker, and toy collections. In this case, Netflix receives a share of the sales. Even without traditional advertising, Netflix has become one of the most attractive platforms for brand communication.
Conclusion
Netflix rewrote the marketing streaming strategy. Unlike the traditional television which relied on commercial breaks, they focused on pure user experience. Brands were forced to find different ways to do ads and find a way to get into Netflix’s shows. The main strategies are product placement, marketing tie-ins, and merchandising. Brands become part of the story, community, and culture, from Eggo waffles and New Coke in Stranger Things to pop-up events or limited-edition products. Netflix largely oversees and sometimes develops campaigns, while the brands themselves invest in promotion and enhance the viewer experience. In the streaming era, traditional advertising is not enough. Only brands that can become an authentic part of the content and offer viewers real added value will be successful.
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