The Next Big Stream: Netflix × Amazon Ads

Hey there,

The Netflix × Amazon Ads integration is now live across 11 countries (US, UK, France, Spain, Mexico, Canada, Japan, Brazil, Italy, Germany, and Australia). 

Brands navigating holiday campaigns and year-end planning, will scramble to figure how to make the most out of it before Q4 ends.

For context: Netflix launched its ad tier in late 2022. Within 3 years, it's building what could become a multi-billion-dollar advertising engine. And now, through Amazon DSP, that inventory is programmatically accessible to any brand already using Amazon's buying tools.

Netflix's ad tier has grown to 94 million global monthly active users, with 55% of new sign-ups in available markets choosing the ad-supported option. That's clearly not a test audience.

When a partnership reaches tens of millions of users, the conversation shifts from "should we consider this" to "how do we activate against this." The numbers coming out of Netflix tell a story about momentum that few predicted just a year ago.

Netflix doubled its ad revenues in 2024 and projects another doubling in 2025. JPMorgan estimates Netflix's advertising revenue will reach $2.9 billion in 2025, up from $1.4 billion in 2024. By 2026, projections suggest it could hit $4.2 billion.

Amazon CEO Andy Jassy recently stated that Amazon DSP now reaches an ad-supported audience of more than 300 million consumers in the U.S., with Netflix, Roku, Spotify, and SiriusXM all integrated. The platform Jassy described is now "fully featured" after 20 months of addressing perceived gaps.

The integration launched at the start of Q4. For brands with existing Amazon DSP budgets, this means Netflix inventory is now foldable into holiday campaigns without needing separate workflows, new partners, or additional platform training.

The timing is designed to capture brands at the moment when budgets are fluid and decision-making happens fast.

Industry watchers are already noting the competitive advantage for early movers. Agencies are advising clients not to wait until Netflix inventory becomes crowded and competitive, noting that early movers often get better pricing and insights.

Access is one thing. Value is another. 

Here's what the integration provides beyond just adding Netflix to a media plan:

Amazon and Netflix are technically competitors in the streaming wars, with both holding competing upfront presentations in spring 2025. Yet the partnership exists because of a simple truth: Amazon has what Netflix needs, and Netflix has what Amazon wants.

Amazon wields a more mature ad-tech stack than comparative newcomer Netflix - powered by troves of shopper data that are increasingly valuable for ad targeting and measurement. Netflix brings premium content and a highly engaged audience that spends an average of 63 minutes per day on the platform. Together, they're creating something neither could build alone.

Disney and Warner Bros Discovery may be forced to pursue similar arrangements to remain competitive in the programmatic advertising space, according to analysts. This is setting the template for how streaming platforms will operate in an advertising-first future.

Pricing remains a point of negotiation. Netflix's $30-50 CPM rates have led to skepticism from advertisers, with many negotiating lower prices, forcing Netflix to choose between premium positioning and higher ad volume.

The ad load is another consideration. Netflix maintains a low ad load of 4-5 minutes per hour, keeping users happy but limiting inventory. That's good for viewer experience. It's a constraint for brands looking for frequency.

And then there's the question of creative readiness. Premium placements require premium creatives. Brands used to performance-focused social ads will need to rethink how they show up in an environment where people are actively watching, not scrolling.

The integration is live. Budgets are flexible. Q4 is the moment when brands traditionally test new channels with the most forgiving conditions. 

Here's what that means in practice:

1. Audit your existing DSP setup
If you're already using Amazon DSP, Netflix inventory is now available. Not every brand should activate immediately, but he barrier to entry just dropped significantly.

2. Revisit your streaming strategy
If Netflix wasn't part of your media mix before, it's time to revisit it as easier access makes it a viable option for a wider range of budgets. 

3. Plan for a creative that matches the environment
Brands need to think about how their message lands in a premium content environment where attention is high and tolerance for interruption is low.

4. Use measurement to validate assumptions
The integration provides access to Amazon's clean room technology and measurement infrastructure. That means brands can track outcomes - Test, measure, iterate.

Streaming now accounts for 46% of subscriptions that are ad-backed, and that number is climbing.

Amazon's advertising revenue jumped 24% year over year to $17.7 billion in Q3 2025, beating expectations. Netflix is building an ad business that could rival traditional TV networks within a few years. 

Now it's no more about adding another channel to the media mix. The future of advertising doesn't separate storytelling from shopping, awareness from action, or premium content from performance marketing.

Jess
CEO, AO2

P.S. Netflix inventory through DSP is live, but is your team actually ready to activate it? Tell me where you're at - it helps me shape what lands in your inbox with the next issues.

P.P.S. Did you read my previous issue on how Amazon’s newest update is leveling the playing field for brands of every size?