Netflix, a global leader in streaming and original content, is entering a new era of ad-funded growth. While subscription fees continue to dominate its revenue—advertising currently accounts for just 3% of total full-year earnings—the platform’s ad tier has evolved from an experimental feature to a core growth engine. WARC forecasts indicate Netflix is on course to secure nearly 10% of global connected TV (CTV) ad spend by 2027.
The latest Platform Insights report from WARC Media examines Netflix’s advertising strategy, brand perception, and potential expansions into areas such as podcasts, gaming, and live events.
Celeste Huang, Media Insights Analyst at WARC Media and author of the report, said "With ad revenue set to double to $3bn by 2026, and with an eye on a growing slice of the streaming ad pie, Netflix is expanding beyond video into a global entertainment hub. It increasingly attracts ad dollars and share of market boosted by live sports, cultural events, Gen Z’s love for brand integrations, and is perceived to be trustworthy by both brands and viewers alike."
Advertising Revenue and Ambitions
Netflix’s advertising revenue surpassed $1.5bn in 2025, representing 3.3% of total revenue, and is expected to double to $3bn in 2026, reaching $8bn by 2030, according to Omdia. Rather than relying solely on market growth, Netflix is targeting competitor share, with its portion of global CTV ad spend projected to rise from 3.7% in 2025 to 9.2% in 2027, per WARC Media.
A potential acquisition of Warner Bros. Discovery could enhance Netflix’s content library and bundled offerings, enabling more effective monetisation of its high-engagement audience.
The company is also entering the video podcast space, which it describes as an evolution of the “modern talk show,” and is investing in cloud gaming across mobile and TV to expand IP impact, deepen retention, and fill engagement gaps.
In the United States, Sensor Tower data for Q2 2025 shows the top advertising categories on Netflix are shopping ($82m), consumer-packaged goods ($78m), financial services ($66m), travel and tourism ($54m), and telecoms ($44m).
Global Reach and Viewer Behaviour
Netflix’s global audience is approaching 1bn, with members consuming 200 billion hours annually. By Q4 2025, its global paid subscriptions reached 315 million. In the UK, Netflix accounted for more than half of all Subscription Video on Demand (SVOD) viewing last year, with similar dominance in the US.
Despite this success, Netflix faces challenges including declining per-user viewing time and competition from free services such as YouTube, particularly among younger audiences. To differentiate itself, the platform emphasises ‘premium storytelling’.
Algorithmic personalisation and a vast originals library have fostered identity-driven fandom, extending into interactive and audio experiences. Netflix now seeks to capture attention beyond traditional film and series through video podcasts, music partnerships, sports livestreaming, and gaming integrations.
While Netflix has successfully engaged high-net-worth individuals in North and Latin America, Ipsos Global Influentials identifies the next growth opportunity in under-served regions such as APAC and among lower-income demographics.
Brand Trust and Gen Z Engagement
Consumers perceive Netflix ads as entertaining, fun, and high quality, benefiting from personalised experiences and dynamic ad formats. Advertisers consider Netflix a premium viewing environment, ranking it fourth for global platform “trustworthiness” behind YouTube, Instagram, and Google. Unlike user-generated content platforms, Netflix maintains strict content curation, enhancing brand safety, according to Kantar.
Gen Z audiences particularly favour brand integrations with Netflix content. They are 70% more likely to trust brands that align with their favourite fandoms, and 74% more likely to make purchases from brands connected to these shows.
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