
An AI-driven upfront season in May showed continued industry focus on artificial intelligence. Only 15.3% of marketing budgets go toward AI on average. Netflix plans to expand its ad-supported tier to more countries, growing from an initial 12-country roster to 27 by 2027, and claims 250 million monthly active viewers globally with over 60% of new signups for the ad-supported tier. Netflix also plans to increase ad inventory across vertical video and podcasts and add tools and features to its Ads Suite. The company expects advertising revenue to reach $3 billion in 2026 and introduced new ad-targeting capabilities through DSP partners and a Conversion API tool. Kraft Heinz’s reworked marketing strategy increased return on global ad spend by eight percentage points.
"May saw an artificial intelligence-fueled upfront season, proving the technology is still very much a priority for the industry. Despite the emphasis marketers are putting on AI, only 15.3% of marketing budgets go towards the technology, on average. May's most interesting data points for marketers, such as Kraft Heinz's reworked marketing strategy and Netflix's advertising push, paint a picture of the deeper struggles facing CMOs."
"Netflix plans to bring the total number of countries where its ad-supported tier is available to 27 in the coming year. The streamer's initial 12-country roster will grow to include Austria, Belgium, Colombia, Denmark and more, according to its May 13 upfront presentation. The company claims to have 250 million monthly active viewers globally and that over 60% of new signups are for its ad-supported tier."
"In addition to the expanded slate of countries included in its advertising business, Netflix also announced plans to increase ad inventory across vertical video and podcasts, along with a host of new tools and features for its Ads Suite at the presentation. Ahead of Q2, Netflix announced new ad-targeting capabilities available through demand-side platform partners Amazon and Yahoo and introduced a Conversion API tool."
"Kraft Heinz's reworked marketing playbook has generated steady improvements in performance. The CPG powerhouse increased marketing investments by 37% YoY for the... 8 The percentage point increase in return on global ad spend generated by Kraft Heinz's marketing strategy"
#artificial-intelligence #marketing-budgets #programmatic-advertising #streaming-advertising #cmo-strategy
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