Netflix Increases its Marketing Budget

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According to YouGov BrandIndex data, Netflix is the brand with the highest approval rating from millennial consumers. If you live in an urban center it’s difficult to miss their advertisements for their series.This is due to their powerful marketing strategies.

The Investment Into Marketing Strategy

In January 2018 Netflix announced that they would further their marketing budget by 54% from $1.3 billion to $2 billion in order to “amplify the value of the content,” according to The Wall Street Journal. It is theorized that this spending is efficient in newly established international markets compared with older markets such as Canada and Latin America. There’s a noticeable distinction between how Netflix markets itself in the United States and its more established markets compared with its newer markets. In the U.S., Netflix ads prominently feature the newest series that are of their own creation; whereas internationally, Netflix ads explains what exactly their service is and how consumers would benefit from having it.


Netflix as a Market Leader

“We’re seeing feedback that spending a little more on marketing is actually going to be better for the business overall because it amplifies the value of the content,” said Netflix CFO David Wells.

Netflix is the current market leader in the realm of video streaming and the company’s increased investment in marketing and original content signifies that their goal is to protect their crown. Conventional TV subscriptions have continued to plummet and their numbers are now equal to the number of Netflix subscribers.


Netflix has an abundance of data about its customers and their viewing habits, which will help them tailor their marketing strategies and amplify personalization down the road. Netflix’s software tailors content recommendations to its users based on what they watch, and how they watch it. This goes beyond the genres users lean towards. Is the user a binge-watcher? Do they watch on a laptop or a television screen? Do they use subtitles? Do they save series for offline viewing and watch them on the go?


Using Data on Users Viewing Habits

Netflix is actively monitoring when, where, and how people consume their series and movies and now focuses on how their habits are changing. A data set released in November 2017 claimed that 67 percent of Americans now watch Netflix outside of their homes, a figure that, according to Eddy Wu, Netflix’s director of product innovation, conveys that “Netflixing in public has become a social norm.” If people are seen using the service in public of their own accord, they essentially become an advertisement to prompt others to do the same, which contributed to the practice becoming so common so quickly.


One thing Netflix is not experimenting with is turning its own platform into an advertising vehicle for other brands. Mr. Hastings described the “commercial-free path” as a “core differentiator.”

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