Netflix aims to win almost 10 percent of global CTV advertising spend by 2027
The streaming service Netflix is massively expanding its advertising business. According to forecasts by Warc Media, advertising revenue is expected to double to $3 billion by 2026 and rise to $8 billion by 2030. As a result, Netflix is increasingly positioning itself as a major player in the connected TV advertising market.
Netflix, the established market leader in original content production and streaming, has entered a new ad-supported era. Although subscription fees continue to generate the majority of revenue and advertising revenue only accounted for 3 percent of total revenue last year, the ad-supported offering has evolved from an experimental format to a primary growth engine. According to forecasts by Warc Media, Netflix is on track to capture almost 10 percent of global connected TV (CTV) advertising spend by 2027.
Warc Media's latest Platform Insights Report examines Netflix's advertising business, advertiser sentiment and potential next steps - from potential acquisitions to new ventures in podcasts, gaming and live events.
Advertising revenue will double by 2026
Netflix is pursuing ambitious plans for its advertising business. Advertising revenue exceeded the 1.5 billion dollar mark in 2025 (3.3% of total revenue) and is expected to double to 3 billion dollars this year. According to data from Omdia, this figure is forecast to rise to 8 billion dollars by 2030. The company is targeting market share from competitors rather than focusing on market expansion. Netflix is on track to capture a rapidly growing share of connected TV spend - from 3.7 percent in 2025 to 9.2 percent in 2027, according to global CTV ad spend data from Warc Media.
A potential acquisition of Warner Bros. Discovery would expand its content and bundle offerings and help to better monetize its members' attention-grabbing usage. The streaming service is also entering the video podcast space, which the company sees as an evolution of the "modern talk show", and increasing investment in cloud gaming for mobile and TV. The aim is to expand the impact of intellectual property, deepen customer loyalty and fill engagement gaps.
According to Sensor Tower data for the second quarter of 2025, the top categories for advertising expenditure on Netflix in the USA were: shopping (USD 82 million), consumer goods (USD 78 million), financial services (USD 66 million), travel and tourism (USD 54 million) and telecommunications (USD 44 million).
Global reach approaching 1 billion
Netflix states that its global audience reach is approaching the 1 billion mark, with members consuming 200 billion hours annually. In the fourth quarter of 2025, the number of paid subscriptions worldwide reached 315 million. In the UK, Netflix accounted for over half of subscription video on demand (SVOD) consumption last year, with similar dominance in the US.
Netflix's consumption trends reflect broader changes and challenges in the SVOD sector, including declining usage time per user and competition from free services such as YouTube - a trend that is particularly evident among younger consumers. To counteract this, Netflix is aiming to stand out through "premium storytelling". Algorithmic personalization and an extensive library of in-house productions have fueled the rise of identity-driven fan cultures that embrace interactive and audio experiences. Netflix is now aiming to capture attention beyond movies and series by expanding into video podcasts, music partnerships, sports live streaming and gaming integrations.
According to Ipsos Global Influentials, Netflix has successfully reached high net worth individuals (HNWI) in North America and Latin America. The next big opportunity lies in expanding into underserved regions such as Asia-Pacific and lower income segments.
Brands value Netflix as a trustworthy environment
Global consumers perceive Netflix advertising as entertaining, fun and of higher quality through personalized experiences with dynamic ad formats. Advertisers describe Netflix as a high-quality viewing environment and rate it as the fourth most "trusted" global platform behind YouTube, Instagram and Google. Netflix stands out as the only platform with strict content curation and competes against user-generated content (UGC) platforms, according to Kantar.
Generation Z prefers brand integrations with Netflix IP and is 70 percent more likely to trust brands that demonstrate a deep understanding of their favorite fandoms. They are also 74 percent more likely to buy from brands that align with their favorite fandoms.
Celeste Huang, Media Insights Analyst at Warc Media and author of the report, commented: "With advertising revenue set to double to $3 billion by 2026, and with an eye on a growing share of the streaming advertising market, Netflix is expanding beyond video to become a global entertainment hub. The company is increasingly attracting advertising dollars and market share, bolstered by live sports, cultural events, Generation Z's preference for brand integrations and is perceived as trustworthy by both brands and viewers."
The Platform Insights Report on Netflix is part of a series of reports exclusively for Warc Media subscribers that looks at platform trends through the lens of investment, user engagement and performance. Other reports in the series cover platforms such as LinkedIn, Reddit, Amazon, Tiktok, Spotify and Facebook. The full report is available at https://www.warc.com/media available.
