Netflix has announced plans to introduce AI-generated advertising, including pause ads, within its programming on the ad-supported tier starting in 2026. This news, initially reported by Media Play News, leaves many questions unanswered about how these ads will function and be targeted. Will they be personalized based on viewers' watch history or related to the content currently being watched? As of now, the specifics on the backend operations and presentation of these ads remain undisclosed.
At a recent Upfront for advertisers event in New York City, Amy Reinhard, Netflix's President of Advertising, highlighted the company's unique position. "Either they have great technology, or they have great entertainment," she stated. "Our superpower has always been the fact that we have both." Reinhard emphasized that Netflix's ad-supported tier subscribers are highly engaged, watching an average of 41 hours of content per month. This translates to approximately three hours of ads per month, a significant amount even before the introduction of AI-generated ads.
Reinhard also pointed out that viewers on the ad-supported tier pay as much attention to mid-roll ads as they do to the shows and movies themselves. This level of engagement is notably higher compared to Netflix's competitors. While the exact implementation date for these AI ads remains unspecified, the shift is set to occur in 2026, marking a new era for Netflix's ad-supported viewing experience.
