AI-Powered Ads Are Coming to Netflix — Here’s What That Means

Sydney Burright • June 6, 2025

Netflix is changing the way we see ads.


By 2026, if you're watching Netflix on the ad-supported plan, you might start seeing ads that match the vibe of the show or movie you're watching. This new approach uses artificial intelligence (AI) to create ads that feel more natural and connected to what you're already enjoying.


Instead of random commercial breaks, you'll see ads that blend in better. For example, if you're watching a cooking show, you might get an ad for a kitchen product. These new ads could show up in the middle of the show (called "midrolls") or when you hit pause. They'll also be interactive with things like call-to-action buttons, second-screen options, or overlays giving you the chance to learn more or even shop right from your screen.


This is all part of Netflix's new modular ad format, which was introduced by Amy Reinhard, Netflix's President of Advertising. She explained that the company is using AI to instantly combine ads with the "worlds" of Netflix shows, making the experience smoother for viewers and more effective for advertisers.


The ad-supported version of Netflix is growing fast. It now reaches over 94 million global monthly users. In the U.S., Netflix's ad-supported plan reaches more 18-34 year olds than any other cable or broadcast network. These users are spending an average of 41 hours a month watching content and that makes Netflix a major player in the world of Connected TV streaming ads.


As Netflix raises prices on its ad-free plans, more people may switch to the ad-supported version. But with smarter, more personalized ads that don't interrupt the experience, it might not feel like a downgrade at all.


We keep a close eye on shifts like this because they show where digital advertising is headed. It is becoming more personalized, more interactive, and more connected to the content people actually care about.


As platforms like Netflix embrace AI-driven ad formats and smarter targeting, it's clear that the future of advertising isn't just about showing your ad to consumers, it's about showing it to them in the right way. Whether it's streaming ads, display campaigns, or branded content, we build strategies that make your message relevant, timely, and impactful.


Want to learn how to stay ahead in this changing ad landscape? Contact us and let's talk!

Share

Billboard reading “THE BILLBOARD TEST” on a gray sign against a blue sky.
By Performance Digital • October 6, 2026
Learn why short headlines, minimal copy, and clear visual hierarchy can improve display ad and landing page performance and help drive more clicks.
Robot elephant in a modern office, surrounded by coworkers watching it attentively
September 23, 2026
A practical look at where AI helps marketers and where human judgement still matters.
Three AI Generated event flyers: boba tea sale, neon concert night, and big pizza sale
By Performance Digital • September 15, 2026
There's an instinct among certain business owners to keep up with the latest marketing trends, and right now, the trend is AI flyers. They're scattered across social media and aside from sales and promotions, can communicate a lot about what or who a brand is. The instinct is understandable, and for many business owners, a quick solution that can potentially elevate their brand is exactly what they need. The low barrier to entry seems attractive to someone who's already strapped for time and may not be able to afford a professional designer on a weekly basis, but here are a few things to consider and ask yourself before putting one of these flyers together.
Human hand reaching toward a robotic hand on a white background
By Performance Digital • September 8, 2026
There’s a sentence I hear more and more often in digital marketing conversations: “Well, can’t I just use AI to make that?” And the answer is… probably. You can use AI to write a blog, create social posts, generate an image, draft an email, come up with Google Ads headlines or build a content calendar in seconds. I’m not going to tell you that’s a bad thing. We use AI, too. It has made parts of our jobs faster, helped us work through ideas and given marketers access to tools we couldn’t have imagined a few years ago. But being able to make something and knowing what you should make are two very different things. 
Laptop screen showing “OMNICHANNEL MARKETING” with digital communication icons
By Performance Digital • September 2, 2026
Running ads on every platform feels like progress. But if the same message is just copied from one channel to the next, you’re leaving your best growth on the table. Here’s the difference, and why it matters most for small and medium businesses. If you run a small or medium business, you’re probably already doing more marketing than you get credit for. You’re on Google. You’re on Instagram and Facebook. Maybe you’ve dabbled in YouTube, sent a few emails, or put your name on a billboard. By most definitions, you’re “everywhere.” That’s multichannel marketing, and it’s a solid foundation. But being present on a lot of channels isn’t the same as making those channels work together. The businesses that pull ahead aren’t the ones on the most platforms. They’re the ones running omnichannel campaigns: one clear idea, adapted to each channel and each audience, so the whole thing feels like a single, coordinated story. For a business with a limited budget, that distinction isn’t a nice-to-have. It’s the difference between spending money to be seen and spending money to be remembered.
Hands around a table reviewing colorful business charts and graphs on papers and tablets.
By Alexis Rios • August 26, 2026
What Is Marketing Data?