Los Angeles, March 5, 2026, 05:27 PST
- Netflix says it will add new ad-targeting options via Amazon DSP and Yahoo DSP starting in the second quarter in the U.S.
- Netflix is launching a new Conversion API to help advertisers track results and optimise campaigns
- The push targets performance-focused ad budgets as streaming rivals chase measurable returns
Netflix said it is expanding its Ads Suite with new audience targeting through Amazon’s and Yahoo’s ad-buying platforms and a new measurement tool aimed at proving whether ads drive sales or sign-ups. The company said the updates start in the second quarter in the United States and will roll out to other ad-supported markets later this year. 1
The move pulls Netflix deeper into performance advertising, where brands pay closer attention to what viewers do after an ad runs, not just whether they saw it. A Netflix spokesperson told ADWEEK the new capabilities are not tied to the company’s upfront strategy — the annual TV ad-selling talks that still set a chunk of budgets. 2
At Morgan Stanley’s Technology, Media & Telecom Conference on Wednesday, Netflix finance chief Spencer Neumann said the company expects its ad business to “rough doubling again this year” as it adds more integrations and lifts fill rates — how much of its available ad inventory it sells. “We don’t manage to fill rate. We manage to overall ad revenue,” he said. 3
The targeting upgrades build on Netflix’s earlier decision to make some inventory available through Amazon’s demand-side platform, or DSP — software that lets buyers purchase ads automatically across digital media. Netflix first partnered with Amazon DSP for programmatic ad buying last September, StreamTV Insider reported. 4
A DSP is a tool agencies and brands use to bid for ad slots in real time, rather than negotiating each placement by hand. A conversion API is a way to send back confirmed actions — like a purchase or app install — so advertisers can measure whether an ad actually worked.
Netflix said advertisers will also get tighter controls over ad frequency, meaning how often a viewer sees the same spot, and new “Conversion API” tools designed to measure outcomes using real-time signals. In early testing with marketing agency Tinuiti, campaigns beat benchmarks by more than 75% across financial services, education technology and retail, the company said. 5
Amazon cast the Netflix tie-up as part of a wider push to link streaming impressions to shopping behavior. “We want to see an outcome,” Sarah Iooss, Amazon Ads’ director of agency partnerships and Twitch, told AdExchanger. Prime Video now reaches about 130 million people after shifting many subscribers to an ad-supported plan, the publication reported. 6
Netflix shares were indicated about 1% higher at $98.66 in premarket trading on Thursday.
But sharper targeting and tighter measurement also bring pressure. Platforms face growing scrutiny over how consumer data is used, and advertisers can turn quickly if attribution looks weak or if Netflix cannot keep ad loads light enough to protect the viewing experience.
Netflix introduced its cheaper ad-supported plan in 2022 and has been adding targeting and measurement tools as the business matured. The first offering was “very simple,” with little advanced targeting, VideoWeek noted. 7
