Disney+ and Netflix, the two behemoths of the streaming world, may have long resisted advertising on their channels, but that is all set to change on December 8 and November 1, respectively. In the face of slowing growth, both companies are introducing ad-supported subscription tiers to boost revenue, delighting budget-conscious consumers and eager brands alike.

While these exciting advertising developments are merely weeks away, the reality is that only major retailers will likely have access to them before the new year. However, this doesn’t mean brands should sit back and wait; instead, those that prepare have a massive opportunity when most trade desks open up their inventory for large programmatic spending in 2023.

The State of OTT Advertising Platforms

With Millennials and Gen Z cutting the cord and supporting the meteoric rise of streaming, the $70 billion TV advertising market has faced massive disruptions in the last decade, to say the least.

By the end of 2022, 140 million consumers will subscribe to an advertising video-on-demand service in the U.S. alone — and researchers predict that by 2025, this number will rise to 165 million. Unsurprisingly, streaming advertising has shot up accordingly, with advertisers spending an average of $1.01 billion monthly on OTT advertising platforms.

Ready to jump into Netflix and Disney+ ads as soon as they become available? Here’s what you need to know.

$1.01 BILLION

AVERAGE MONTHLY OTT AD SPEND IN U.S.

165 MILLION

2025 PROJECTED
STREAMING SUBSCRIBERS

140 MILLION

U.SS CONSUMERS ARE SUBSCRIBED TO A VOD SERVICE AS OF 2022

1. Start brainstorming your ad content ASAP

While neither Netflix nor Disney+ has released details about the types of ads that will be available, we can look to Peacock, Discovery+, and Hulu’s models as references for how their ad tiers, formats, and placements may be structured.

Campaigns on these OTT advertising platforms resemble standard TV ads; however, some include interactive elements (e.g., a scannable QR code.) There are pause ads (delivered when a viewer pauses their show or movie), binge ads (tailored messages to viewers binging a show), or spotlight ads (shown to every viewer, regardless of what they’re watching, at a specific time slot).

In short, the creative possibilities are endless, so brands should begin brainstorming what their potential Netflix or Disney+ ads can look like. Here are some tips to keep in mind:

• Consider ways to make your ads feel like an extension of what your viewer may be watching, rather than a complete disruption. This means ensuring your ad is high-quality and delivers valuable content.
• Introduce your brand in the first few seconds of the ad and have a punchy CTA that encourages action.
• Produce your ad with TV screen sizes in mind, but also make sure your CTAs and value propositions are clearly visible when the ad is played on other devices, like tablets or smartphones.

2. Design a diversified paid media strategy

With economic worries causing brands to scale back spending, it’s been a tough quarter for ad publishers: Meta experienced its first revenue decline, YouTube’s ad revenue growth has slowed, and Roku’s stock price plummeted.

 With the digital advertising landscape changing, previous tactics may no longer offer the same ROIs. One way to future-proof your brand is by diversifying your paid media strategy accordingly. Despite the flurry of excitement surrounding Netflix or Disney+, ensure you’re not putting all your eggs in one basket; instead spread your budget between digital and traditional channels.

3. Consider what audience you will target

One of the biggest perks OTT advertising platforms offer is powerful precision targeting, whether geography, demographics, or interests — ensuring your ad reaches a relevant audience can unlock higher engagement rates and, ultimately, conversions.

While the first phase of Netflix’s ad-supported service will have limited targeting ability — you won’t be able to target by age, gender, viewing behavior, or time of day — this will likely change as these OTT advertising platforms’ ad capabilities grow. We predict that, like other major streamers, Netflix and Disney+ will offer brands real-time insights into what target consumers are searching for and watching, which will be useful for audience segment building.

Ready to get ahead of the competition when Netflix and Disney+’s ads roll out? Rather than navigate these uncharted waters alone, Power Marketing can help you build a powerful media plan tailored to your audience and brand.