Netflix Unveils New Metric: Monthly Active Viewers
Netflix has launched a new advertising metric known as Monthly Active Viewers (MAV), aiming to provide a more complete and accurate representation of its global ad audience. The streaming powerhouse says MAV incorporates co-viewing habits, offering advertisers a clearer view of how many people are actually watching ad-supported content across households.
This move marks a significant shift from its previous metric, Monthly Active Users (MAU), which only accounted for individual user profiles engaging with ads. According to Netflix, MAV is calculated by multiplying the number of members who watched at least one minute of ads in a month by the company’s estimated average household co-viewing size, derived from first-party research.
Reaching Over 190 Million Viewers Monthly
Netflix now claims its ads reach more than 190 million viewers globally each month. The company made the announcement during a media briefing on November 5, with executive Mitzi Reaugh emphasizing the communal nature of Netflix viewing, stating that the previous MAU metric was a “conservative representation” of the platform’s true reach.
“Netflix viewing is oftentimes a very communal experience. And MAU did not capture any co-viewing,” Reaugh explained. “MAV is not just the number of accounts on the ads plan, because that’s not what matters most to advertisers. What matters most is the number of people watching.”
Netflix hopes that MAV will eventually become an industry standard for measuring ad reach in the streaming space, where a universal metric has yet to be established.
Ad Revenue Expected to Double by 2025
The introduction of MAV comes at a time when Netflix’s advertising business is experiencing significant growth. Co-CEO Gregory Peters shared during the company’s third-quarter earnings call that Netflix is “on track” to more than double its ad revenue by 2025. Peters noted that while advertising revenue is still modest compared to its subscription income, the company now believes it has the foundational components in place to scale rapidly.
At the beginning of the year, Netflix rolled out its proprietary ad tech stack across 12 countries. This system allows advertisers to purchase ad placements directly through Netflix, eliminating the need for third-party intermediaries. According to Amy Reinhard, Netflix’s president of advertising, the new system has been a “huge success,” helping the platform deliver the formats, measurement, and reporting capabilities advertisers have long desired.
New Targeting and Interactive Ad Features
In addition to launching MAV and its ad stack, Netflix is expanding its demographic targeting capabilities. Starting this month, advertisers can target audiences based on education level, marital status, and household income, providing more precise options for reaching key demographics.
The company is also experimenting with interactive video ads that include call-to-action prompts tailored to individual viewing behaviors. Reinhard highlighted the feature as an “unmatched personalized experience for members,” further enhancing the value proposition for advertisers looking to engage viewers more effectively.
Growing Brand Partnerships and Cultural Impact
Netflix’s evolving ad strategy is also paving the way for larger brand partnerships. The streaming giant says these collaborations are delivering “unprecedented” global reach and helping turn major shows into cultural phenomena. These partnerships are part of Netflix’s broader effort to integrate advertising in a way that adds value both to viewers and brands.
With its best quarter yet in ad sales, Netflix’s advertising division is making “considerable progress,” positioning the company as a serious player in the digital advertising space.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.