Netflix and “Bill”? What Automotive Dealers Need to Know About Netflix’s New Ad-Supported Tier

It’s official, Netflix is set to begin its new ad-supported tier, “Basics With Ads,” Thursday, November 3rd. One of the most prolific streaming services, Netflix, has announced that it will start showing 15- and 30-second ads to run before and during programs and up to 5 ads per hour. For automotive dealers, this could mean an additional opportunity to expand your dealership’s reach and drive traffic to your door, but only if it makes sense.

Pricing for the Consumer

For the consumer, the Netflix “Basics With Ads” option costs $6.99/month. This cost sits slightly above the Peacock streaming service, and slightly below the ad-tier iteration of Hulu. Competing with other upcoming ad-tiered streaming options like the new Disney+ ad-tier subscription, Netflix expects to tack on an extra 500,000 subscribers to its roster of nearly 220 million total subscriptions from November 3rd to the end of the year.

Pricing for the Advertiser

Due to overwhelming interest during the pre-launch, Netflix claims they have nearly sold out their ad inventory to national advertisers, and will not have any availability for local businesses at its onset. Additionally, Netflix has revealed that it will launch the soon-to-be ad-tier streaming service with aggressive ad pricing compared to its competitors like Hulu, Amazon, and Warner Bros.

Netflix's ad-supported tier and your dealershipTargeting

To begin, ads on Netflix will use broad targeting capabilities to target by genre, country, as well as Netflix’s fluctuating list of top 10 programs to reach their target audience. These targeting techniques will also allow advertisers to prevent running ads in programs that do not line up with the advertisers’ product or service. Post-launch, Netflix will start to look towards more specific targeting strategies like age, gender, and time of day. Although demographic targeting will not be available at launch, incoming subscribers will identify their age and gender, eventually to be used to support ad targeting.

Advanced Automotive Advertising

With near-constant changes in automotive advertising patterns, the agency you partner with can be one of the most crucial decisions you can make when generating impressions and driving traffic. At the Automotive Advertising Agency, we strive to stay up-to-date with the latest marketing trends to give our dealers a leading-edge service. So if you’re interested in learning more about upcoming ads on Netflix or just curious about what an exclusively automotive ad agency can do for your dealership, we’d like to talk. Give us a call at 512.610.7300 or drop us an email at

About the author

Michelle Camacho is the President of The Automotive Advertising Agency.