Netflix is strengthening its advertising ambitions with the appointment of Nicolle Pangis as its new vice president of advertising. Pangis, who formerly served as CEO of Ampersand, a TV ad sales company, brings a data-driven approach to Netflix’s ad strategy as the streaming giant gears up for a critical expansion of its advertising business in 2025.
An Industry Veteran Joins Netflix
Pangis steps into the role previously held by Peter Naylor, who departed Netflix in July. With extensive experience in programmatic advertising and deep industry connections, Pangis will oversee ad sales and account management for the U.S. and Canada. Reporting directly to Netflix’s President of Advertising, Amy Reinhard, she will play a pivotal role in building the company’s next-generation ad model. At Ampersand, Pangis was instrumental in capturing 75% of the addressable TV market footprint in the U.S., a feat that Netflix hopes will translate to the streaming space.
Pangis expressed her excitement about joining Netflix, noting, “Given the incredible fandom for their movies and TV shows, Netflix is best positioned to put brands at the center of the cultural zeitgeist. They offer hugely impactful and relevant experiences for clients, and I can’t wait to get started.”
Netflix’s Advertising Business on the Rise
Since launching its ad-supported tier in November 2022, Netflix has seen a rapid increase in demand for this affordable option. As of Q3 2024, Netflix’s ad membership grew by 34% quarter-over-quarter, with ad-supported plans making up half of new signups in markets where they’re offered. The company expects this growth to continue, targeting 2025 as the year it reaches critical scale in ad-supported subscriptions across multiple regions.
Netflix has been actively building out its ad infrastructure to prepare for this growth. In December, the platform will begin testing its own ad-tech platform in Canada, a significant step toward in-house ad management. Additionally, Netflix is enhancing its programmatic buying options by partnering with The Trade Desk and Google’s DV360 for campaigns in the U.S. and Latin America. This approach aims to give advertisers more flexibility and precision in reaching Netflix’s audience, particularly as these capabilities expand globally over the next year.
Aiming for Long-Term Impact
Despite the promising trajectory, Netflix has cautioned that advertising won’t become a primary revenue source overnight. While Netflix saw a 15% year-over-year revenue increase in Q3 2024, the company is balancing between growing its advertising business and maintaining subscriber engagement. Netflix’s focus on scale rather than immediate revenue from ads signals a strategic, long-term approach to integrating advertising with its content-driven model.
The streaming platform recently wrapped up its upfront marketplace season, reporting a 150% increase over its 2023 total with broad interest across all ad categories. This momentum highlights Netflix’s potential to attract top brands and increase advertiser investment through its unique entertainment ecosystem.
With Pangis at the helm, Netflix’s advertising team is well-positioned to harness the platform’s cultural influence and scale its ad operations for a highly competitive 2025.
Read more about Netflix’s new VP of advertising on Marketing Dive