Netflix Ad Revenue Set to Hit $3 Billion in 2026 as Advertiser Base Grows 70%

Netflix's Q1 2026 earnings confirmed its ad business is doubling this year, and the details are relevant to anyone planning video budgets.

The company confirmed its ad business is on track to reach $3 billion in revenue, doubling from 2025, as the ad-supported tier continues to grow as a share of the subscriber base.

Overall Q1 revenue came in at $12.25 billion, up 16% year over year, with Netflix citing membership growth, a March price increase, and rising ad revenue as the drivers.

The ad-supported plan now accounts for over 60% of new sign-ups in markets where it is available.

Meanwhile, Netflix said it currently works with more than 4,000 advertisers, up 70% from the same period last year.

The report also confirmed that its chairperson Reed Hastings will leave the board in June, ending a 29-year run at the company he co-founded.

Netflix shares have fallen roughly 15% since January amid deal uncertainty.

Against that backdrop, the ad business is the clearest growth story in the earnings and the numbers confirm that Netflix is now actively scaling it.

New Ad Products and the Amazon DSP Integration

Netflix confirmed it will launch new ad products throughout 2026 to help advertisers measure the incremental impact of their campaigns, verified by Netflix's first-party data.

Co-CEO Greg Peters said on the earnings call that programmatic buying is growing rapidly and is "on its way to becoming more than 50% of our non-live ads business."

However, the fastest development for media buyers is the Amazon DSP integration.

Starting in Q2 in the U.S., brands purchasing Netflix inventory through Amazon DSP will be able to apply Amazon Audiences.

These are advertiser segments built from Amazon users' shopping, browsing, and streaming behavior, which brands can now apply to their campaigns.

This combination of Netflix's viewing data and Amazon's purchase intent signals gives advertisers a targeting layer that has not previously been available on the platform.

Implications for Advertisers and Agencies

Netflix's in-house ad tech stack, which replaced Microsoft's technology in late 2025, has already simplified how buyers access inventory.

The platform runs roughly four minutes of ads per hour, one of the lowest ad loads in streaming, which the company says is a choice to protect the viewing experience.

The company also addressed its full-year revenue guidance of $50.7 billion to $51.7 billion.

This was boosted in part by the $2.8 billion termination fee received after the Warner Bros. Discovery merger collapsed in February.

On the WBD situation, Netflix's shareholder letter was straightforward:

"Warner Bros. would have been a nice accelerant for our strategy, but only at the right price."

Here are some tips for brands and media teams incorporating Netflix into their video strategies:

• Test the Amazon DSP integration in Q2: Applying Amazon purchase data to Netflix placements is a new targeting capability worth testing early.
• Plan for incrementality measurement: Netflix's new first-party data tools will make it easier to assess whether Netflix spend is reaching audiences not covered elsewhere.
• Factor in the low ad load when briefing creative: Four minutes per hour means less clutter, but also higher CPMs and a different viewing context.

Netflix's ad business is now large enough that it belongs in the media plan conversation, not just the experimental budget.

Our Take: Is Netflix Now a Must-Buy for Advertisers?

We think it's getting close, and the Amazon integration is the detail that tips it for many buyers.

The combination of Netflix's engagement data and Amazon's shopping behavior gives the platform a targeting story it hasn't had before.

For brands that have been waiting for a reason to commit meaningful budget, this integration removes one of the clearest objections.

The low ad load is also worth taking seriously as a creative consideration.

An ad running in a four-minute-per-hour environment lands differently from one stacked into a standard pre-roll rotation.

Brands that account for that in their creative briefs will get more out of the placement.

Brands building CTV strategies across Netflix and other streaming platforms need agencies that understand how to match targeting capabilities with creative that performs in lean-back environments.

Take a look at the top programmatic advertising agencies in our directory.