Netflix is set to develop new advertising formats in order to increase revenue from its ad-supported service. The US streaming service held talks with advertising executives at this year’s Cannes Lions Festival to discuss potential advertising strategies. One such strategy includes “episodic” campaigns, where consumers are shown a series of different but related ads to address complaints about repetitive advertisements. Netflix co-CEO Greg Peters and president of the global advertising arm, Jeremi Gorman, spent time at the festival wooing advertising executives and brands. This focus on advertising is part of Netflix’s long-term strategy to redefine how brands can use the platform. The partnership with Microsoft is likely to expire, giving Netflix more room to innovate and develop its own technology. With access to customer data, Netflix can tailor marketing based on viewing behavior. The streaming service has already seen success with earnings from subscribers and has increased the number of new signups by cracking down on account sharing. In an effort to reduce costs, Netflix has made a series of job cuts over the past year, laying off employees from various departments. The company plans to cut spending by $300 million this year.
