Netflix’s advertising arm has surged forward in 2025, marking a pivotal shift for the streaming giant once known for its ad-free model. In the first half of the year, the company reported robust growth in its ad-supported tier, with executives touting plans to double ad revenue from 2024 levels, potentially reaching billions as it eyes a slice of the $25 billion connected TV market. Yet, beneath this momentum, media buyers—key players in allocating ad budgets—express reservations that could temper spending enthusiasm.

These professionals, responsible for steering client dollars toward effective platforms, highlight persistent gaps in Netflix’s offerings. Despite high viewer engagement and premium content drawing brands, the platform’s limitations in data transparency and targeting precision are seen as hurdles. As one agency executive noted, the allure of Netflix’s audience is undeniable, but without deeper insights, justifying larger investments remains challenging.

Measurement Shortfalls Hindering Scale

A core issue revolves around measurement tools. Media buyers argue that Netflix’s current analytics fall short of industry standards, lacking the granular performance data that competitors like YouTube or Hulu provide. According to a recent report in Digiday, buyers are clamoring for enhanced attribution models to track ad impact on viewer behavior, such as conversions or brand lift, which would enable more confident budget allocations.

This sentiment echoes across the industry, with some insiders pointing to Netflix’s proprietary ad-tech platform, rolled out fully in 2025, as a step forward but not sufficient. The platform promises better targeting, yet buyers report inconsistencies in real-time reporting, making it hard to optimize campaigns mid-flight. One buyer anonymously shared that while Netflix’s inventory is premium, the absence of third-party verification tools creates skepticism among risk-averse clients.

Demands for Advanced Targeting and Integration

Beyond measurement, there’s a push for more sophisticated targeting capabilities. Netflix has expanded its ad-supported tier geographically, but media buyers seek integrations with demand-side platforms (DSPs) for seamless programmatic buying. Posts on X from industry observers in recent months underscore this, with discussions highlighting how Netflix’s closed ecosystem limits automation compared to open-web alternatives.

Furthermore, the introduction of interactive ads slated for the second half of 2025, as detailed in The Verge‘s coverage of Netflix’s Q2 earnings, could address some concerns by enabling engaging formats like shoppable pauses or AI-generated mid-roll spots. Buyers view these as potential game-changers, but they insist on pilot programs to test efficacy before committing substantial funds.

Competitive Pressures and Revenue Ambitions

Netflix’s ambitions are bold: projections from Campaign Asia suggest the company aims to double ad revenue again in 2025, building on 95 billion streamed hours and a subscriber base nearing 300 million. However, competition from Amazon Prime Video and Disney+ intensifies, with those platforms offering more mature ad ecosystems.

Media buyers emphasize that Netflix must accelerate partnerships with measurement firms like Nielsen or Comscore to build trust. Recent X chatter from marketing professionals, including updates from agencies like Tinuiti, reflects optimism tempered by calls for transparency, noting how AI-influenced ad formats could boost relevance if backed by solid data.

Strategic Implications for Advertisers

For brands, the equation is clear: Netflix’s cultural cachet offers unmatched reach, but unlocking full potential requires addressing these pain points. Insiders predict that resolving measurement gaps could accelerate spend by 20-30% in the coming quarters, per industry estimates.

As Netflix invests $18 billion in content this year, per Variety reports, the synergy between programming and ads grows crucial. Buyers advise a phased approach, starting with targeted tests in high-engagement genres like live sports or global hits.

Looking Ahead to Full Potential

Ultimately, Netflix’s ad evolution in 2025 positions it as a formidable player, but success hinges on heeding buyer feedback. With interactive features on the horizon and ongoing platform refinements, the company could close the gap, transforming from a streaming pioneer to an advertising powerhouse. Industry watchers will monitor Q3 results closely, as sustained growth depends on bridging these operational divides.