Does Netflix Have Ads? A Marketer’s Guide to Netflix’s Ad-Supported Tier

If you’ve recently Googled “Does Netflix have ads?” — you’re far from alone.

Netflix built its reputation on uninterrupted, ad-free entertainment. For years, it was the streaming platform that proudly said no to commercials. But in 2022, that stance shifted. And now, yes — Netflix does have ads, but only on its new Basic with Ads plan.

Whether you’re a curious subscriber or a digital marketer trying to understand the implications, this change matters. Let’s unpack how Netflix’s ad-supported tier works, why it was introduced, and what it means for advertisers exploring new frontiers in video.

The History of Netflix’s Ad-Free Model

From the beginning, Netflix positioned itself as the antidote to traditional TV. No ads. No interruptions. Just binge-worthy content whenever you wanted it.

This ad-free model wasn’t just a feature — it was a core part of Netflix’s identity. It helped the platform differentiate itself from cable TV, YouTube, and even ad-heavy competitors like Hulu. For a long time, that simple promise worked wonders: users were happy to pay more for an ad-free experience.

But the landscape doesn’t stay still for long.

Why Netflix Changed Its Stance

Fast forward to 2022, and Netflix found itself in unfamiliar territory: slowing growth, increased cancellations, and fierce competition from the likes of Disney+, Amazon Prime, and HBO Max.

Add to that a wave of password sharing, investor pressure, and a saturated market — and suddenly, the ad-free model wasn’t looking so sustainable.

Enter: Basic with Ads — Netflix’s first foray into the world of advertising.

The move allowed the company to introduce a lower-cost tier without compromising its premium offering. And for marketers, it opened up a brand-new space to reach engaged, global audiences.

How the Netflix Ad-Supported Tier Works

Netflix’s ad-supported subscription, officially called Basic with Ads, launched in November 2022. It’s now available in dozens of countries, including the UK, US, Canada, and several European markets.

Here’s a quick breakdown:

Plan name: Basic with Ads

Monthly cost: Cheaper than the Standard or Premium plans

Video quality: Capped at 720p

Ad frequency: About 4–5 minutes of ads per hour

Ad duration: Typically 15 or 30 seconds

Downloads: Not available

Content access: Most titles included, though some are missing due to licensing restrictions

It’s designed for price-conscious users who don’t mind a few ads in exchange for savings — a trade-off many are increasingly willing to make.

What Kind of Ads Appear on Netflix?

Netflix has taken a premium-first approach to advertising. You won’t find cluttered banners, pop-ups, or awkwardly placed mid-rolls. Instead, ads appear before and during shows, similar to traditional TV but with shorter, less frequent breaks.

Early adopters include brands in:

• Automotive (GM, Audi)
• Tech (Samsung)
• Consumer packaged goods (Nestlé, L’Oréal)
• Fashion (Louis Vuitton)
• Financial services

All ads must meet Netflix’s high standards for quality and brand safety. This isn’t a space for cheap production or aggressive hard sells — it’s a polished, cinematic environment.

Who Can Advertise on Netflix?

At the moment, not everyone can.

Netflix doesn’t offer a self-serve platform like Google Ads or Meta Business Manager. Instead, brands must go through approved agency partners and meet minimum budget requirements — often in the range of $20,000 to $50,000+ per campaign.

Netflix has partnered with Microsoft Advertising to manage ad tech and inventory. This ensures reliability, but it also means accessibility is still limited to larger advertisers and agencies with buying power.

How Does Netflix Target Ads?

Netflix’s targeting capabilities are still in their early stages. At launch, advertisers could target based on:

• Country or region
• Device type (TV, tablet, mobile)
• Time of day
• Content genre (e.g., family films, action, comedy)

That’s it — no behavioural targeting, no retargeting, and no user-based profiles.

Why? Because Netflix is taking a privacy-first approach. It doesn’t track viewing behaviour in the same way that Google or Meta does, and it doesn’t rely on third-party cookies.

So while you can reach broad segments of Netflix’s global audience, you won’t be drilling down to niche personas just yet.

Netflix Ads vs Other Platforms: How Do They Stack Up?

Let’s put things into perspective:

The takeaway? Netflix isn’t a performance marketing tool — yet. But it offers top-tier brand exposure in a distraction-free environment.

Is Netflix a Good Platform for Small Businesses?

Let’s be honest — Netflix’s ad offering is exciting, but it’s not without flaws:

• Limited targeting compared to Google or Meta
• No click-through links — you can’t drive traffic to a landing page
• High costs and limited inventory
• Few performance metrics (e.g. no CPA, CTR, or conversions)

It’s best used as a brand awareness play, not for direct response.

Where Is This Headed? How Netflix Ads Could Evolve

While early days are focused on high-budget brand campaigns, there’s plenty of room for Netflix to grow its offering.

Future possibilities include:

• Shoppable or interactive ads
• Audience retargeting via Microsoft partnerships
• Dynamic ad insertion based on real-time data
• Partner dashboards for mid-market agencies
• SMB-friendly tools to open the platform to a wider base

If Netflix wants to compete with YouTube or even Amazon in the long term, these evolutions are likely on the horizon.

What Do Viewers Think about Netflix Ads?

Surprisingly, most users haven’t revolted.

While some longtime subscribers weren’t thrilled by the news, many welcomed the cheaper option. And compared to traditional TV or even YouTube, the ad load is pretty light.

With cost-of-living pressures increasing, ad-supported models are gaining traction. Some users are even voluntarily downgrading to save money — ads and all.

Why This Matters to Marketers

Netflix’s move into advertising is part of a much bigger shift:

• Premium platforms are monetising through ads
• Audiences are becoming more ad-tolerant (when there’s a clear value exchange)
• Video consumption is outpacing static media

Marketers should be asking:

• Where is my audience watching content now?
• Am I investing enough in brand building — not just clicks?
• Are there emerging platforms worth planning for now?

Other Streaming Platforms with Ads: How Netflix Compares

Netflix is part of a crowded and evolving space — but its brand value and global reach set it apart.

Should You Advertise on Netflix?

Ask yourself:

• Are you focused on mass awareness and long-term brand lift?
• Is your target audience streaming premium content regularly?
• Do you have high-quality video creatives ready to go?
• Is your budget built for upper-funnel investment?

If yes, Netflix might be worth exploring through an agency partner.

If not, there are still powerful (and more accessible) alternatives:

• YouTube pre-roll ads
• Meta video ads on Reels and Stories
• Connected TV via programmatic platforms like Roku, Amazon, or Sky AdSmart

Final Thoughts: Streaming Ads Are the New Frontier

Netflix’s move into advertising marks a pivotal shift in how we think about digital video. It’s no longer just about performance metrics and conversions — it’s about meeting audiences where they’re watching.

Even if your brand isn’t ready for Netflix ads today, understanding this shift is crucial for tomorrow. Because as media continues to evolve, so should your strategy.

Looking for digital ad opportunities? The Munro Agency is here to help. We’ll help you assess your goals, budget, and audience, and design a campaign that fits — across every screen.

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