How much does it cost to advertise on Netflix?

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Last updated: April 8, 2026

Quick Answer: Netflix introduced advertising in November 2022 with its 'Basic with Ads' tier priced at $6.99/month in the US. Advertisers can purchase placements through Microsoft's ad platform, with CPM rates reportedly starting around $45-55 for US audiences. Netflix aims to reach 40 million global ad-supported viewers by late 2023, offering 4-5 minutes of ads per hour of content.

Key Facts

Netflix launched ad-supported tier in November 2022
Basic with Ads costs $6.99/month in the US
CPM rates start around $45-55 for US audiences
Microsoft handles ad sales and technology
Goal: 40 million ad-supported viewers by late 2023

Overview

Netflix, founded in 1997 as a DVD rental service, transformed into the world's leading streaming platform with over 238 million paid subscribers globally as of 2023. For most of its history, Netflix operated as an ad-free subscription service, with plans ranging from $6.99 to $22.99 monthly. However, facing slowing subscriber growth and increased competition from Disney+, HBO Max, and Amazon Prime Video, Netflix announced in April 2022 it would introduce an ad-supported tier. This marked a significant strategic shift for the company that had long resisted advertising. The ad-supported tier launched in November 2022 in 12 countries including the US, Canada, UK, Germany, France, Australia, Brazil, and Japan, with plans to expand to more markets throughout 2023.

How It Works

Netflix's advertising model operates through its 'Basic with Ads' subscription tier, which offers the same content library as regular plans but includes 4-5 minutes of advertisements per hour of viewing. The ads appear before and during content, with frequency caps to prevent repetition. Netflix partnered with Microsoft in July 2022 to handle all advertising sales and technology, leveraging Microsoft's Xandr platform. Advertisers can purchase placements through programmatic and direct deals, with targeting based on country, genre, and basic demographics (age and gender) but not individual viewing history to maintain privacy. The platform offers various ad formats including 15-30 second pre-roll and mid-roll video ads, with plans to introduce interactive and sponsored content. Netflix provides advertisers with measurement tools through third-party verification partners to track campaign performance.

Why It Matters

Netflix's move into advertising represents a major shift in the streaming industry, creating new revenue streams estimated to generate $3-4 billion annually by 2025. This allows Netflix to offer a lower-priced entry point at $6.99/month, potentially attracting price-sensitive viewers who previously couldn't afford subscriptions. For advertisers, it provides access to Netflix's premium, engaged audience in a brand-safe environment. The advertising model also helps Netflix compete more effectively against other ad-supported services like Hulu, Peacock, and Paramount+, potentially slowing subscriber churn. As streaming services face increasing content production costs, advertising revenue could help fund original programming while keeping subscription prices manageable for consumers.