In another turmoil in the market, Netflix announced it had 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 successful partnership, it’s the latest example of Google failing in the advertising market.
A brief timeline of market shifts
Back in February, The Trade Desk started deprecating Google Open Bidding from its platform.
Catherine Patterson, general manager of Publisher Development at The Trade Desk, provided us with an official quote regarding their decision to cancel the Google Open Auction.
- “Our advertisers are increasingly aware of how Google’s Open Auction platform can tilt the market in favor of certain players. With this in mind, we’ve launched OpenPath, which enables publishers to integrate directly with advertiser needs on our platform , thereby creating an objective and efficient benchmark. Additionally, the support we have received from buyers and sellers following the deprecation of Google Open Bidding has been very encouraging, with media spending being redistributed to a more open, objective and transparent path. Other partners also It’s a big step towards more competitive and fair auctions by following suit and moving away from open auctions.”
Fast forward a few months, and two other DSPs, Yahoo and Amobee, followed Trade Desk and removed the Google Open Auction in June.
On the same day that Microsoft and Netflix made their announcements, digital turbine It also announced its new unified brand following a round of acquisitions of AdColony, Fyber and Appreciate. These are mobile ad platforms and ad tech on the DSP side.
That has allowed nine major digital ecosystems to wrest some market control from Google — all within the past six months.
Microsoft takes center stage
Microsoft has quietly made great strides in the market over the past few years.
However, its latest efforts over the past year show that they are ready to take more space in the advertising market.
In December 2021, Microsoft announced Plans to acquire Xandr From AT&T. The goal of the acquisition is to help accelerate the delivery of its current digital advertising and retail media solutions.
The acquisition of Xandr is a major move into the open web for Microsoft, which has been known for staying in search and native advertising.
Netflix and Microsoft partnership details
Netflix is looking to partner with a major ad platform as they launch their first ad-supported subscription product.
Although consumers have did not shoot well For ad subscription products, advertisers will be delighted with the benefits of the partnership.
So, how does it benefit marketers? In the early stages, we know that Microsoft advertisers will have:
- Access Netflix viewers
- Access to Netflix’s premium connected TV inventory
For brands, this is a huge opportunity to expand their reach on a high-profile platform. Additional audience targeting and potential segmentation of their demographics and behaviors will also help you create more sophisticated and targeted approaches to video advertising.
Marketing budgets have become tighter due to rising costs, necessitating more accurate and relevant targeting in every advertising effort. And, additional ad platforms help further spread out the available inventory – helping control CPMs and CPCs (for now).
Why did Netflix choose Microsoft as its preferred partner? Netflix COO Greg Peters statement:
- “Microsoft is well positioned to support all of our advertising needs as we build new ad-supported products together. More importantly, Microsoft provides the flexibility to innovate in technology and sales over time and provide our Members provide strong privacy protections.”
generalize
If you haven’t seen Microsoft as a potential advertising platform for your brand, now is the time. As the product evolves and expands, Microsoft now supports multiple brand goals beyond its initial core product search.
Will we see more brands take a stand against Google in the advertising market? perhaps.
While Google remains one of the major players in the open web, other platforms and technologies finally have a chance to shine — and marketers are the ultimate winners here.
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