Netflix is set to unveil AI-created commercials that become part of show content to boost advertising on its platform.
According to reports, these advertisements will employ generative AI to seamlessly integrate products into environments, like background scenes based on hit shows.
New ad formats, which include pause and mid-roll ads, that become visible when content is paused or while playing back on the ad-supported level
These changes were announced by Netflix at its Upfront presentation, which outlined the increase of its ad-supported plan to 94 million users.
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The company stressed that these AI-powered advertisements will provide an enhanced, more contextually appropriate advertising experience to viewers.
The users on the ad-supported plan can look forward to these integrated advertisements going global by 2026, further boosting monetization tactics.
The move by Netflix to use AI-powered advertising is part of an industry-wide phenomenon to develop more innovative forms of ad delivery.
The company is of the belief that mixing up advertising with content will render it less obtrusive and more appealing to the audience.
This method is at variance with conventional ad placements, as it strives to synchronize commercials within viewing.
It is yet to be seen whether users will accept these AI-created advertisements as Netflix continues to expand its advertising efforts.
