The latest news about Netflix ventures in advertising suggests the streaming giant might be looking at building its own AdTech platform.
As the CEO of a company that specializes in building AdTech platforms, I wasn’t at all surprised by this news.
At Clearcode, we’ve worked with various companies, many of which are in a similar position to Netflix, to explore the “build” option with us.
We even built an AdTech stack for a very similar company to Netflix that was in the exact same situation (link to the case study below for the details).
Building an AdTech platform isn’t going to be the best option for every company, but for companies like Netflix, there are strong arguments for it.
In short, the main advantages of building an AdTech platform are:
- Full control over the tech, including the features, integrations, and product roadmap.
- Better integrations with existing systems, e.g. Netflix's streaming service.
- Ownership and protection of its data — Netflix can allow advertisers and agencies to target its audience without its audience or user data ever leaving its systems.
- Saving on fees and commissions — no more markups on the price of its inventory, licensing fees etc. (this could save Netflix hundreds of thousands or even millions of dollars).
But what about buying an AdTech platform?
Brian Wieser, CFA from Madison and Wall said it perfectly in the Digiday article:
“if you buy some other entity [with a full ad tech suite], then you’d have to abandon other revenue streams which means you’re paying for something you’re not going to get.”
For Netflix, buying an existing AdTech platform would be a colossal waste of money.
https://lnkd.in/dKXNnwni
Questions, queries, or comments?
Let me know in the comments section below.
And if you’d like to learn more about what’s involved in building an AdTech platform, then DM me to set up a time to chat.
#adtech #martech #netflix #walledgarder #programmaticadvertising #streamingservices