Netflix to Launch AI-Driven Ads Integrating Brands into Popular Shows, Films

Netflix is preparing to launch a new generation of AI-powered advertisements, promising to seamlessly integrate products with its most popular series and films. The announcement, made during Netflix's annual Upfront event, is the streaming giant's most daring attempt yet to transform the advertising experience for its rapidly growing ad-supported user base.

The upcoming AI-powered ads will allow brands to "marry" their products with Netflix content, displaying images of advertised items against backdrops inspired by flagship shows like Stranger Things, Bridgerton, or Wednesday. For viewers on the ad-supported plan, this means commercials that blend in with the atmosphere of what they're watching, appearing mid-show or even when the program is paused.

According to Amy Reinhard, Netflix's president of advertising, the new format will provide brands with "an entirely new palette" of ways to engage audiences. "The pace of progress is going to be even faster," Reinhard promised at the event, implying that the company is only scratching the surface of what is possible with AI-powered advertising.

Advertisers will be able to run these immersive ads as overlays or actionable prompts, and Netflix plans to complete the rollout by the end of the year. The streaming service did not provide specifics on how the technology will evolve, but the approach is consistent with industry trends, such as Warner Bros. Discovery's recent plans to commercialize its intellectual property.

The shift comes as Netflix's ad-supported tier continues to grow, with the company revealing that it now serves 94 million monthly users, more than doubling the 40 million reported at the same time last year. The strategy is viewed as a direct play for increased advertising revenue, while also allowing brands to tap into Netflix's cultural cachet in a less disruptive, more contextual manner.