Netflix is working on a new kind of AI-powered advertisement that blends seamlessly with its original content, allowing brands to “marry” their products with shows like Stranger Things, Wednesday, or Bridgerton.
Unveiled during Netflix’s Upfront event on Wednesday, this innovative format overlays product visuals on backgrounds inspired by the show you’re watching.
If you’re on Netflix’s ad-supported plan, you may soon see ads that feel like an extension of the series itself. These immersive placements could appear during pause screens or mid-show ad breaks, featuring call-to-action overlays and customized branding elements. Netflix says the new ad format is expected to roll out by the end of 2025.
While similar in concept to Warner Bros. Discovery’s IP-based ad strategy, Netflix is leveraging AI to ensure a more personalized and seamless ad experience. According to Amy Reinhard, Netflix’s president of advertising, the pace of innovation in this space is set to accelerate: “The pace of progress is going to be even faster,” she said during the presentation.
Netflix also announced a major milestone: its ad-supported tier now boasts 94 million monthly active users, more than doubling from 40 million just a year ago—highlighting strong growth in its advertising business.
