Netflix to Use Generative AI for Immersive In-Show Advertising by 2026
Netflix plans to introduce generative AI-powered ads that blend seamlessly with its shows and films, aiming to make advertising more immersive and less disruptive on its ad-supported Basic with Ads subscription tier. This move will roll out by 2026 and is expected to change how brands connect with viewers on the platform.
The new AI-driven advertising approach will integrate branded products directly into the visual style of popular Netflix titles like Stranger Things, Bridgerton, and Wednesday. This context-aware product placement will create ads that feel like a natural part of the viewing experience rather than interruptions.
Ad Formats and Features
- Mid-roll ads: These will appear during streaming, blending into the show’s environment.
- Pause ads: Displayed when viewers hit pause, these ads will include interactive elements like QR codes and clickable overlays to drive engagement.
The goal is to shift from intrusive interruptions to engaging, immersive brand messages that respect the viewer’s experience.
Focus on the Ad-Supported Tier
This new ad format will be exclusive to Netflix’s Basic with Ads tier, which costs $7.99 per month in the US, compared to $17.99 for the ad-free Basic plan. Currently, this tier is available in 12 countries, including the US, UK, Canada, Japan, and South Korea. India is not yet part of this rollout.
Netflix’s advertising president highlighted that the Basic with Ads plan has over 94 million active users worldwide, with US viewers streaming an average of 41 hours monthly. This high engagement makes Netflix a valuable platform for advertisers.
Advertising Trends in Streaming
Netflix isn’t alone in adopting AI-driven ad technology. At Upfront 2025, YouTube introduced ‘Peak Points,’ an AI tool designed to optimize ad placement, signaling a wider adoption of AI in streaming advertising strategies.
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