Key Takeaways
- Netflix is no longer just a branding platform for Fortune 500 companies. It’s now becoming a direct-response platform.
- QR codes, programmatic buying, and advanced audience targeting are making Netflix more direct-response friendly.
- Health, wellness, financial, investment, and business marketers may now be able to reach highly relevant prospects through DSP audience targeting.
- Amazon DSP and Yahoo DSP have significantly expanded Netflix targeting capabilities.
- Netflix should rarely be used as a standalone media buy for lead generation.
- The winning strategy is Netflix + landing pages + retargeting + email follow-up.
- Direct response marketers should test Netflix against YouTube CTV, Hulu, Roku, and Amazon Prime Video to determine actual ROI.
Is Netflix Finally Ready for Direct Response Marketing?
For years, the answer was simple.
“No.”
Netflix was a branding platform.
Big companies.
Big budgets.
Big awareness campaigns.
Little accountability.
Little measurable response.
Little interest from serious direct response marketers.
That’s changing.
Fast.
Today, Netflix has become one of the most interesting new opportunities for marketers looking to generate leads and sales through Connected TV (CTV).
But before you rush to shift budget dollars…
There are seven things you should know.
1. Netflix Now Has One Thing Direct Marketers Need: Reach
The ad-supported version of Netflix has exploded.
Millions of viewers now watch Netflix programming with advertising.
That means marketers can reach consumers in a premium, distraction-free environment.
Unlike social media…
Viewers are actively engaged.
Unlike many websites…
Ad blockers aren’t stopping the message.
Unlike linear television…
Targeting is dramatically improved.
The result?
A potentially powerful combination of television-scale reach and digital-style targeting.
2. The Real Story Is Not Netflix
It’s The Data Behind Netflix
Most marketers are looking in the wrong place.
The story isn’t Netflix.
The story is Amazon DSP.
The story is Yahoo DSP.
The story is audience targeting.
Historically, television buying was crude.
Age.
Gender.
Geography.
That’s about it.
Today, Netflix inventory can be purchased through platforms that allow advertisers to layer sophisticated audience data.
Potential examples include:
- Health and wellness enthusiasts
- Supplement buyers
- Fitness consumers
- Financial news followers
- Business owners
- Investors
- Retirement planners
- Food
- Product buyers
- Luxury consumers
- Homeowners
- Pet owners
- Parents
- Travel enthusiasts
This changes everything.
Instead of buying viewers…
You can buy audiences.
That’s a major distinction.
3. Health and Wellness Marketers May Be One of the Biggest Winners
Many DMU subscribers sell:
- Supplements
- Pain relief products
- Health information
- Nutraceuticals
- Wellness services
- Medical devices
- Fitness products
Historically these advertisers relied on:
- Native advertising
- Direct mail
- Television
Now imagine this scenario.
A prospect has shown interest in:
- Joint pain
- Healthy aging
- Weight loss
- Fitness
- Vitamins
- Alternative health
That audience may be available through DSP audience targeting.
The Netflix ad then drives viewers to:
- A lead magnet
- A free report
- A webinar
- A VSL special offer
Viewers scan a QR code.
The lead enters your funnel.
The sales process begins.
This is where Netflix becomes interesting.
Not as a branding medium.
But as a lead-generation medium.
4. Financial and Investment Marketers Should Pay Attention
Investment publishers may be among the most overlooked beneficiaries.
Consider the traditional challenge.
A publisher wants to reach:
- Investors
- High-net-worth individuals
- Retirement planners
- Business owners
Today, DSP audience targeting will help you identify individuals exhibiting financial interests and behaviors.
Imagine running a Netflix ad offering:
“Free Report:
The 5 Biggest Retirement Threats Facing Americans 50 and Over Today.”
Or:
“Watch This Free Presentation Before The Next Market Correction.”
The QR code takes the prospect directly to a registration page.
5. QR Codes Are the Secret Weapon
Today’s CTV environment allows marketers to place QR codes directly on screen.
A viewer scans.
A landing page opens.
A lead is generated.
A sale may occur.
The best performing offers typically include:
- Free reports
- Webinars
- Assessments
- Product samples
- Special offers
- Video presentations
The key is simplicity.
The viewer should be able to take action in seconds.
6. Netflix Is Not a Standalone Strategy
This is where many marketers will fail.
They’ll treat Netflix like old television.
Big mistake.
The winning strategy looks more like this:
Netflix Ad
↓
Landing Page
↓
Lead Capture
↓
Email Follow-Up
↓
Retargeting
↓
Sale
Netflix should often be viewed as the first touchpoint.
Not the last.
The real profits may come from what happens after the QR code scan.
7. Test Before You Scale
Every marketer should remember one rule.
Media platforms don’t generate profits.
Marketing systems generate profits.
Before committing large budgets:
Test audiences.
Test offers.
Test creative.
Test landing pages.
Test QR placement.
Test follow-up sequences.
Compare Netflix against:
- YouTube CTV
- Hulu
- Roku
- Amazon Prime Video
- Programmatic CTV
The winner isn’t the platform.
The winner is the platform that generates the lowest cost per lead and lowest cost per sale.
The Bottom Line
For years, Netflix wasn’t relevant to direct response marketers.
Today it deserves attention.
Not because it has become another television network.
But because it is becoming a data-driven, audience-targeted platform capable of generating measurable results.
Will it replace Google?
No.
Will it replace Facebook?
No.
Could it become a profitable source of leads and sales for the right marketer?
Absolutely.
Especially when combined with strong targeting, compelling offers, QR-driven response, and a sophisticated follow-up system.
The marketers who begin testing now may gain an important competitive advantage while many of their competitors still think of Netflix as nothing more than entertainment.
Action:
Interested in a Netflix test? Call Michael at 615-933-4647 or email him at [email protected].
FAQs:
Is Netflix advertising good for direct response marketing?
Netflix can support direct response campaigns when paired with audience targeting, QR-code response mechanisms, landing pages, retargeting, and conversion tracking.
How does Netflix audience targeting work?
Much of the targeting capability comes through programmatic partners such as Amazon DSP and Yahoo DSP, which can provide audience segmentation based on consumer interests and behaviors.
Can Netflix ads generate e-commerce sales?
Yes, particularly when viewers can immediately scan a QR code and complete a purchase or enter a conversion funnel.
What industries may benefit most from Netflix advertising?
Health and wellness, financial services, investing, business services, education, e-commerce, and subscription-based businesses may find
Netflix increasingly attractive.
What is the best Netflix advertising strategy?
Use Netflix as the top of a direct-response funnel, followed by landing pages, email follow-up, retargeting, and sales conversion campaigns.
About Craig Huey:
Craig Huey is President of Creative Direct Marketing Group (CDMGinc.com), a 30-year leader in direct response advertising and multi-channel marketing. Under his leadership, CDMG has:
- Tested more than 10,000 digital marketing variables.
- Mailed over 10 million pieces of direct mail in the last year alone.
- Won more than 120 awards for marketing excellence.
Craig is also the publisher of Direct Marketing Update, the trusted newsletter for company presidents and marketing directors looking to maximize ROI with cutting-edge, accountable advertising strategies.
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