Netflix has announced that it is going to introduce AI-Generated Ads and Pause Ads. It will be introduced in the ad-supported tier in 2026. The company is developing a new type of ad that uses AI to show advertiser products alongside Netflix shows and movies. Netflix has also explained this with examples during its third upfront event. In which they showed how the picture of a product will be placed in the background of the content.
How will this plan work?
For users taking Netflix's ad-supported plan, this new decision of Netflix means that they will see ads similar to the content they are watching. The US OTT giant also said that advertisers will show these new types of ad formats in the middle of watching a show or movie or when they have paused the content.
These ads will also include things like overlays or calls to action. Let us tell you that these will be introduced by the end of this year.
What does Netflix have to say on AI-generated ads?
During this event, Netflix's President of Advertising Amy Reinhard said that the ad-supported plan now has more than 94 million monthly active users worldwide. And it is most used among people aged 18-34 in the US, more than any other cable network or broadcaster.
She also said that people taking this plan in the US spend a lot of time on Netflix, about 41 hours every month.
The company has said in one of its blogposts that this decision of the company will give the members of this plan a better and customized experience. Also, it was told that this format will be implemented in all the countries which are ad-supported by 2026.
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