In another market disruptive move, Netflix announced that it has chosen Microsoft as its advertising partner and sales partner.
Microsoft Chairman and CEO Satya Nadella confirmed the news via Twitter on Tuesday, July 13.
While Microsoft celebrates this triumphant partnership, this is the latest example of Google’s losing battle in the advertising market.
Brief timeline of market transformation
This past February, the Bureau of Commerce began shutting down Google Open Bidding from its platform.
Katherine Patterson, general manager of publisher development at The Trade Desk, has given us a formal presentation on their decision to remove Google Open Bidding.
- “Our advertising clients are becoming increasingly aware of how Google’s Open Bidding platform is tilting the market in favor of particular players. With this in mind, we have launched OpenPath, which provides publishers with the ability to integrate directly with advertisers’ demand on our platform, creating an objective and effective benchmark In addition, the support we have received from both the buy and sell side following the shutdown of Google Open Bidding is very encouraging as media spending is reallocated to more open, objective and transparent paths Other partners following suit in shutting down Open Bidding is a great move Towards a more competitive and fair auction.
A few months later, DSP, Yahoo, and Amobee followed suit and removed Google Open Bidding in June.
On the same day as the Microsoft and Netflix announcement, digital turbine It also announced its new unified brand following the acquisition round of AdColony, Fyber and Appreciate. These are mobile advertising platforms and advertising technology on the DSP side.
That makes nine major digital ecosystems regain some market control from Google – all within the past six months.
Microsoft takes center stage
Microsoft has quietly made great strides in the market in the past few years.
However, his most recent efforts last year showed that they are poised to acquire more real estate in the advertising market.
In December 2021, Microsoft announced the release of plans to acquire Xandr from AT&T. The goal of this acquisition was to help accelerate delivery of existing digital advertising and retail media solutions.
The acquisition of Xandr was a huge step into the open web for Microsoft, which was previously known for staying in the search and native advertising space.
Netflix and Microsoft partnership details
Netflix was looking to partner with a major advertising platform as it unveiled its first ever ad-supported subscription offer.
While consumers Not well taken In opt-in advertising offer, advertisers will be pleased with the benefits that come with the partnership.
So, what’s in it for marketers? In its early stages, we know Microsoft advertisers will have:
- Reach the Netflix audience
- Access to Netflix Premium Connected TV inventory
This is a great opportunity for brands to expand their presence on a high visibility platform. Targeting additional audiences and potentially segmenting their demographics and behaviors will also help you create a more sophisticated and targeted approach to video ads.
As marketing budgets become more scrutinized due to rising costs, more accurate and relevant targeting is a must in every advertising effort. And the add-ons platform helps spread out available inventory – helping to keep your CPM and CPCs at bay (for now).
Why did Netflix choose Microsoft as its partner of choice? Greg Peters, Chief Operating Officer, Netflix advertiser:
- “Microsoft has a proven ability to support all of our advertising needs as we together build a new ad-supported offering. Most importantly, Microsoft has provided the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members.”
If you haven’t considered Microsoft as a potential advertising platform for your brand, now is the time. With its ever-changing expansion of offerings, Microsoft now supports multiple brand objectives outside of its initial core offering for search.
Will we see more brands take a stand against Google in the advertising market? probably.
While Google is still one of the major players on the open web, other platforms and technologies are finally getting a chance to shine — with marketers being the ultimate winners on this one.
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