[eMarketer] What Netflix and Microsoft partnership means for the ad industry

After months of speculation, Netflix announced that it has chosen Microsoft as its technology and sales partner for the streaming service’s upcoming ad-supported subscription tier.

The news is the second major streaming advertising announcement this week, coming just one day after Disney announced a partnership with The Trade Desk to build an ad platform for its various video services.

Netflix’s advertising initiative started off on the back foot, but partnering with an established firm like Microsoft will help ease concerns about the effectiveness of its ad offerings.

The ad-supported video gold rush is reaching a fever pitch at the same time that the advertising industry faces a privacy and addressability crisis. Both Disney and Netflix’s announcements directly confront those needs.

Microsoft has invested heavily in its advertising business over the last year, and a partnership with a platform as prominent as Netflix could help it eat up a larger share of the digital ad market.

According to eMarketer, after months of criticism, Netflix’s choice in Microsoft will go a long way to steady the waters around its ad-supported subscription tier while helping Microsoft solidify its position as a major player in digital advertising.

Read the full eMarketer article here

www.emarketer.com