Netflix Looks to Bolster Data, Measurement as Ad Business Grows

Netflix, a relative newcomer to the ad business, is looking to make its advanced advertising capabilities more sophisticated in the coming years.

The company talked about its ad-tech roadmap during its third-quarter earnings call Tuesday. 

Co-CEO Greg Peters said that the company is pleased with the progress of its three-year-old ad business. In 2025, ad revenues are on track to double, though he admitted that is compared to a small base on still not close to the company’s subscription revenues.

The company also doubled its future ad commitments in the upfront market, he said. 

“So if you use our beloved crawl-walk-run model, we're now squarely in that walking phase,” Peters said. “The rollout of the ads suite, our own ad suite, has been great because it means we're just continuing to learn and improve the stack based on client feedback. So we've got a really fast iteration loop going there that we're excited about.”

Peters said Netflix planned to continue to build its ad capabilities by adding new ad formats. Later this quarter, Netflix will be introducing ad interactivity, he said. 

Netflix is also seeing high rates of growth in its programmatic ad business.  “That's more important because we believe that's going to be an increasing part of that incremental revenue contribution going forward,” Peter said.

In 2026, Netflix plans to provide brands with more ways to buy, more data for targeting and media planning capabilities. Globally it will offer more modular interactive ad formats with enhanced AI capabilities and more measurement functionality in all of its ad supported markets.

“In 2027, we get to pivot to make more focused investments in data capabilities such as ML-based optimization, advanced measurement, advanced targeting,” Peters said. 

“So I would say we're getting our legs underneath us. We're making a good pace, but we've got a lot ahead of us to go do. And quite frankly, we expect we're going to be able to move more quickly than other streamers as we leverage pre-existing tech and data science assets and expertise,” he added.

Netflix stock price dropped in after-hours trading following its earnings announcement. Revenues rose 17%, in line with Wall Street expectations, but earnings were lower than expected. The company said a tax issue in Brazil was responsible for the shortfall. 

With Warner Bros Discovery initiating a review if its strategic options–including a sales–Netflix execs were asked about their M&A plans. 

Co-CEO Ted Sarandos tried to throw water on speculation Netflix might be interested in buying WBD or parts of it.

Sarandos noted that Netflix has historically had more of a build than buy mentality. 

“We've been very clear in the past that we have no interest in owning legacy media networks, so there's no change there. But in general, we believe that we can be and we will be choosy. We have a great business. We're predominantly focused on growing organically, investing aggressively and responsibly into the growth and returning excess cash flow to shareholders through our share repurchase,” he said.

# # #

Canela Media said it has formed a partnership with Pixability that will make it easier for advertisers to reach Hispanic audiences on YouTube.  

“Combining our extensive reach and premium Hispanic audiences on OTT through Canela Audience Solutions with Pixability’s proprietary YouTube capabilities will enable us to reach bilingual and bicultural consumers in more culturally relevant environments without sacrificing precision,” said Chechu Lasheras, Chief Strategy Officer at Canela Media.

By combining Canela’s Audience Solution, which provides a U.S. Hispanic database of 76 million unique devices generating more than 20 million unique identities, with Pixability’s agentic curation agent, Pixie, advertisers can seamlessly extend their OTT campaigns onto YouTube, identifying the right YouTube content to enhance reach.

“Integrating Canela Media’s consumer graph with our unmatched YouTube contextual data will give brands a first-of-its kind way to extend Hispanic OTT campaigns to YouTube at scale–and is a great complement to our Inclusive Media Initiative,” added David George, CEO of Pixability.

# # #

Ad-tech company StackAdapt said it made a deal with Fox’s Tubi streaming service that will give StackAdapt users direct access to Tubi inventory. 

The companies said that with a direct connection, buyers gain an easy and efficient way to access premium streaming inventory. Advertisers can also take advantage of custom-curated, turn-key CTV packages that are ready to activate and designed to maximize campaign outcomes.

“This partnership with Tubi represents a meaningful step in bringing our clients closer to the moments that matter most,” said Greg Joseph, VP of Inventory at StackAdapt. “By integrating directly with Tubi, we are ensuring our clients gain scale and efficiency, with the added confidence that their campaigns are reaching audiences in the highest-quality environments.”

# # #

LG Ad Solutions said it made a deal that will make its ACR data available in the Databricks Marketplace via Delta Sharing. 

The arrangement allows advertisers to use the ACR data in the same systems they safely use to manage their own first-party data, reducing friction when planning CTV campaigns. 

“Our goal has always been to meet clients where they are,” said Julian Zilberbrand, Global Head of Data Solutions at LG Ad Solutions. “Many of our partners already use Databricks as a central part of their data workflow, and now they can access LG Ad Solutions’ ACR data directly through Delta Sharing, reducing friction and enabling faster, easier adoption through a platform they already trust to plan, measure, and optimize their campaigns.”

 # # #

With more search becoming AI-driven, Partnerize said it has developed VantagePoint, an attribution product that measures how AI-surfaced content generates outcomes, including online purchases. 

VantagePoint employs technology Partnerize got when it acquired Konnecto in June.

“AI is increasingly shaping which content and recommendations reach consumers, redefining how influence is created and measured,” said Matt Gilbert, CEO of Partnerize. “As AI-curated experiences become the new gateway to commerce, advertisers risk losing sight of what they’re paying for, and publishers risk losing the ability to prove what their content is worth. Generative AI Conversion Attribution, the ability to measure the influence of content cited by AI, even without a direct click, will become the new standard.”

The first brands to deploy VantagePoint include Hubspot, Love Holidays, Saatva, and Shopify.

At Shopify, AI isn’t an add-on. It’s the baseline,” said Shayna Massey, Director of Affiliate Marketing.“AI is our permanent tailwind. By working with innovators like Konnecto and Partnerize, we’re accelerating the shift from AI curiosity to AI native, making faster, smarter decisions that keep our brand and partners visible in a world where machines decide what audiences see.”

# # #

Aquila, the cross-media measurement initiative set up by the Association of National Advertisers, said that Samba TV’s streaming viewing data will be integrated into the Aquila platform. 

Completing the cross-media measurement puzzle requires a best-in-class partner for every piece of the ecosystem,” said Aquila CEO Bill Tucker. “As we work to ensure Aquila encompasses as many advertisers and streaming platforms as possible, Samba TV was the clear choice to address the complexities of the streaming landscape. Their robust data and privacy-safe methodology are essential to our mission of offering advertisers the first truly deduplicated view of their reach across every major screen, from the smartphone to the living room TV.”