The WARC Podcast How Netflix became an advertising behemoth
Feb 24, 2026
Celeste Wong, media insights analyst and lead author on a Netflix platform report. She walks through Netflix’s ad formats and capabilities. Forecasts for ad revenue growth and CTV dynamics are discussed. Adoption of ad tiers, which brands are advertising, and regional audience opportunities come up. The conversation also covers Netflix’s moves into games, podcasts and live sports to boost engagement.
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Ad Tier Became Main Driver For Signups And Retention
- The ad-supported tier scaled rapidly to over 190 million accounts and drove nearly half of new signups in early 2025.
- Ad-supported accounts rose from 26% to 40% of the base year-on-year, showing the tier's role in acquisition and retention.
Travel Ads Buck Trend On Netflix
- Advertisers on Netflix skew toward shopping and CPG, with travel and tourism an unexpected top category in the US.
- Travel's prominence reflects Netflix's global hits that drive cross-border interest in destinations.
YouTube Threat Limits Netflix Viewing Growth
- Viewing hours grew only about 1% in H1 2025 as YouTube eats younger viewers' attention, creating pressure on Netflix's average viewing time.
- Netflix is focusing on narrowing the monetization gap between ad and standard tiers rather than only adding subscribers.