Comments on: Not Showing at Netflix: The Great Online Ad Slowdown http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/ by Peter Kafka Mon, 06 Feb 2012 16:52:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Not Showing At Netflix: The Great Online Ad Slowdown (at AllThingsD) | StockTrading Portal http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/comment-page-1/#comment-2595 Not Showing At Netflix: The Great Online Ad Slowdown (at AllThingsD) | StockTrading Portal Sat, 21 Feb 2009 08:51:30 +0000 http://mediamemo.allthingsd.com/?p=3540#comment-2595 [...] Everyone knows that online ad prices have been in free fall. So why isn t Netflix, one the biggest online ad buyers in the world, getting a break on prices? original article [...] [...] Everyone knows that online ad prices have been in free fall. So why isn t Netflix, one the biggest online ad buyers in the world, getting a break on prices? original article [...]

]]> By: Peter Kafka http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/comment-page-1/#comment-1906 Peter Kafka Tue, 27 Jan 2009 22:23:47 +0000 http://mediamemo.allthingsd.com/?p=3540#comment-1906 Helpful, Ben. Thanks. Helpful, Ben. Thanks.

]]> By: ben allen http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/comment-page-1/#comment-1888 ben allen Tue, 27 Jan 2009 19:29:12 +0000 http://mediamemo.allthingsd.com/?p=3540#comment-1888 a few possible explainations: - the average eCPM declines are being skewed by relatively larger declines in premium areas like finance which are not where NFLX advertises, so its not expected that they'd see the full 'average decline' benefit. They tend to advertise in very general, mass reach content which is already very cheap to start with. The eCPM drop in these content areas is probably not nearly as severe since they were so low to begin with. - To take it a step further NFLX may buy what I think of as sub remenant. Sub Remenant is "ad inventory" that is not a part of the traditional publishers ad spaces inventory. Ie pop unders and the "hey can you add a 90x60 button on this little corner on every page of your site for the next six month" for a next to nothing CPM but at massive volumes of impressions. Because this doesn't eat into other sellable inventory and NFLX can dangle a big check in front of publishers, they'll often get deals outside what you normally see in the ad network remenant circles. - becuase of their size and buying power they may work more significantly with publishers directly on more long term deals, like the one described above, where the effect of month over month 'scatter pricing' variability is more muted. But rest assured when its time to renew, they should have a lower jumping off point from which to renegotiate those new deals. @ $26 SAC, $14-15 of monthly ARPU, and less than 5% churn they don't seem to be doing too shabby. a few possible explainations:
- the average eCPM declines are being skewed by relatively larger declines in premium areas like finance which are not
where NFLX advertises, so its not expected that they’d see the full ‘average decline’ benefit. They tend to advertise in very general, mass reach content which is already very cheap to start with. The eCPM drop in these content areas is probably not nearly as severe since they were so low to begin with.
- To take it a step further NFLX may buy what I think of as sub remenant. Sub Remenant is “ad inventory” that is not a part of the traditional publishers ad spaces inventory. Ie pop unders and the “hey can you add a 90×60 button on this little corner on every page of your site for the next six month” for a next to nothing CPM but at massive volumes of impressions. Because this doesn’t eat into other sellable inventory and NFLX can dangle a big check in front of publishers, they’ll often get deals outside what you normally see in the ad network remenant circles.
- becuase of their size and buying power they may work more significantly with publishers directly on more long term deals, like the one described above, where the effect of month over month ‘scatter pricing’ variability is more muted. But rest assured when its time to renew, they should have a lower jumping off point from which to renegotiate those new deals.

@ $26 SAC, $14-15 of monthly ARPU, and less than 5% churn they don’t seem to be doing too shabby.

]]> By: Aaron Thomas http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/comment-page-1/#comment-1865 Aaron Thomas Tue, 27 Jan 2009 13:18:36 +0000 http://mediamemo.allthingsd.com/?p=3540#comment-1865 Mr. Hastings, if there was ever a time to call in your Internal Audit team, this is it. Your marketing guru may be correct; maybe not. The ad market could be exactly as described; or your marketing chief may be passing along bad intel. If in doubt, you should ask your chief auditor to confirm the Marketing chief's assertions. Otherwise, you're really not going to know the answer. Mr. Hastings, if there was ever a time to call in your Internal Audit team, this is it. Your marketing guru may be correct; maybe not. The ad market could be exactly as described; or your marketing chief may be passing along bad intel. If in doubt, you should ask your chief auditor to confirm the Marketing chief’s assertions. Otherwise, you’re really not going to know the answer.

]]> By: Not Showing At Netflix: The Great Online Ad Slowdown [MediaMemo] | heave-ho.org http://mediamemo.allthingsd.com/20090127/not-showing-at-netflix-the-great-online-ad-slowdown/comment-page-1/#comment-1863 Not Showing At Netflix: The Great Online Ad Slowdown [MediaMemo] | heave-ho.org Tue, 27 Jan 2009 13:07:02 +0000 http://mediamemo.allthingsd.com/?p=3540#comment-1863 [...] Read the original:  Not Showing At Netflix: The Great Online Ad Slowdown [MediaMemo] [...] [...] Read the original:  Not Showing At Netflix: The Great Online Ad Slowdown [MediaMemo] [...]

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