Netflix Advertising Guide
Robert Ong
Managing Director
What Is Netflix Advertising?
Netflix Advertising (often referred to in the industry as Netflix Basic with Ads or Standard with Ads) is a hybrid SVOD/AVOD (Subscription/Advertising Video On Demand) model. It offers consumers a lower subscription price in exchange for watching approximately 4 to 5 minutes of ads per hour.
Unlike YouTube or the cluttered environment of traditional broadcast TV (Linear), Netflix has curated a premium, low-load environment. The ads run before (pre-roll) and during (mid-roll) TV shows and movies. Crucially, Netflix has maintained strict frequency caps, meaning a user won’t see your ad ten times in a single binge session—a common frustration on other local BVOD platforms.
Why Advertise on Netflix?
The primary draw is attention. In an era of second-screening, Netflix commands a level of focus that other platforms struggle to match. When a user hits play on Stranger Things or Squid Game, they are leaning in, not scrolling past.
- The “Netflix Effect”: Being seen on Netflix carries a “premium halo” effect for brands. You aren’t just buying an impression; you are buying association with cultural zeitgeist content.
- Incremental Reach: A significant portion of the Netflix audience consists of “cord-cutters” or “cord-nevers”, people who simply cannot be reached via Channel Seven, Nine, Ten or SBS.
- High Completion Rates: Because ads are non-skippable and short (15s or 30s), completion rates are exceptionally high, often exceeding 95%.
- Rapid Adoption: Data from late 2025 indicated that roughly 73% of new Australian sign-ups are choosing the ad-supported tier. The audience is scaling faster than anticipated.
Netflix Advertising Options & Formats
Netflix has moved beyond simple “spots and dots.” While the core offering is video, the formats are evolving to feel native to the streaming experience.
- Pre-roll and Mid-roll Video: The standard 15, 30, or 60-second spots. Mid-rolls are placed at natural narrative breaks to minimise viewer annoyance.
- Top 10 Alignment: Advertisers can specifically target the “Top 10” most-watched shows in Australia, guaranteeing your brand is part of the current watercooler conversation.
- Keep Watching / Pause Ads: Static creative that appears when a user pauses content. This is a high-impact, non-intrusive format that effectively turns the TV screen into a digital billboard in the living room.
- Sponsorships: Brands can sponsor specific themes or collections (e.g., “The Action Collection”), offering “presented by” branding at the start of the viewing session.
How Much Does Netflix Advertising Cost in Australia?
When Netflix first launched ads in Australia, they demanded eye-watering premiums. In 2025, the market has corrected, but it remains a premium buy.
- CPM (Cost Per Mille): Expect to pay between AUD $60 and $80 CPM. This is significantly higher than YouTube (often $15-$20) and sits at the top end of the BVOD market (usually $40-$65).
- Why the premium? You are paying for a 100% brand-safe environment, zero fraud (bot traffic is non-existent on CTV), and verified attention.
- Dynamic Pricing: Rates fluctuate based on seasonality (Q4 is more expensive) and targeting specificity. Broad demographic buying is cheaper than targeting specific “moods” or genres.
Why Choose AdUnion for Netflix Advertising?
When Netflix first launched ads in Australia, they demanded eye-watering premiums. In 2025, the market has corrected, but it remains a premium buy.
- CPM (Cost Per Mille): Expect to pay between AUD $60 and $80 CPM. This is significantly higher than YouTube (often $15-$20) and sits at the top end of the BVOD market (usually $40-$65).
- Why the premium? You are paying for a 100% brand-safe environment, zero fraud (bot traffic is non-existent on CTV), and verified attention.
- Dynamic Pricing: Rates fluctuate based on seasonality (Q4 is more expensive) and targeting specificity. Broad demographic buying is cheaper than targeting specific “moods” or genres.
FAQs
Can small businesses advertise on Netflix?
Yes. Initially, this was limited to only big brands with massive budget commitment levels. Now, thanks to programmatic buying, small-to-medium businesses can access Netflix inventory. You don’t need a million-dollar budget, but you do need a partner to facilitate the buy, as there is no self-serve “boost post” button like Facebook.
Is Netflix advertising available in Australia?
Yes. Australia was one of the initial launch markets in November 2022. It is now fully operational with robust targeting and measurement capabilities.
What targeting is available on Netflix ads?
Netflix offers a sophisticated suite of targeting options based on Content, Audience, and Viewing Experience:
- Content & Genres: Target by primary genres (e.g., Action, Drama, Unscripted) or secondary themes (e.g., Food, Sports, Travel). You can also align with the Top 10 most popular shows or select specific Titles (minimum 75) while excluding others for brand safety.
- Audience Moods & Interests: Target users based on Viewing Moods (e.g., “Adrenaline,” “Unwind,” “Romance”) or over 100 Interests derived from viewing habits (e.g., Tech, Fashion, Pets).
- Demographics: Target by Age (18-65+), Gender, and Geography (Country, State, City, Postcode).
- First-Party Data: Advertisers can upload their own customer lists securely to target existing users.
- Viewing Controls: Refine delivery by Daypart (time/day), Device (CTV, Mobile, Desktop), or buy the First Impression of a viewing session.
What Brand Safety filters are available when advertising on Netflix?
Netflix offers two primary Brand Safety filters to ensure your ads appear in environments that align with your brand standards:
1. Sensitive Content Blocks - These filters allow you to automatically avoid specific themes and topics. The available blocks include:
- Graphic Violence: Scenes of detailed, prolonged violence, torture, or devastating injury.
- Nudity: Exposure of full frontal, genital areas, or anus.
- Sex: Depictions of consensual sex, including masturbation or intercourse.
- Sexual Violence: Detailed or extended depictions of violence involving non-consensual power dynamics.
- Suicide and Self Harm: Graphic scenes of suicide, self-harm, or gore.
- Stand Up (Comedy): Comic performances before a live audience.
- Anime: Animated titles across any primary genre (e.g., BoJack Horseman, Disenchantment).
2. Title Exclusion - For precise control, you can provide a list of up to 20 specific titles that you want to strictly exclude from your campaign to ensure your ads never run within that content.
What is the minimum spend for Netflix ads?
If you try to buy a “Direct IO” (Insertion Order) straight from Netflix’s sales team, minimums can be high ($30k+). However, via Programmatic channels (through agencies like AdUnion), there is technically no hard minimum spend, though most agencies will recommend a minimum campaign budget of $5k–$10k to generate meaningful data.
How do I get my brand on Netflix?
You cannot log in to a portal and upload a credit card yourself. You must go through a media agency who will manage the buy for you.
Are Netflix ads skippable?
No. Unlike YouTube, where users are trained to hover over the “Skip” button after 5 seconds, Netflix ads must be watched to resume content. This forces high viewability and retention.
