Netflix is a streaming service that has revolutionised the entertainment industry with its approach of combining strategic planning, data-driven marketing, advanced tech integrations, and product development to increase customer LTV (Lifetime Value) and new subscriber acquisition.
Netflix's popular original content like Stranger Things are not just productions; they are carefully crafted products with marketing programs designed to capture and retain audience attention. Netflix's media & marketing strategy for these shows is multi-faceted and begins long before the release of a single episode.
Pre-Release Hype and Teasers
Netflix begins its marketing campaigns with teasers and trailers released months in advance. These short, impactful videos are designed to create curiosity and build anticipation.
For Stranger Things, Netflix released cryptic teaser trailers and posters, generating buzz and speculation on social media. This pre-release phase is crucial for driving early engagement and word-of-mouth promotion.
Cross-Platform Media & Marketing
Digital channels are crucial for marketing Netflix's shows. Social media, display advertising, online video, and search engine marketing are used extensively to engage audiences.
The company also utilises traditional media channels such as out-of-home (OOH) advertising and TV commercials, particularly for its flagship series.
This truly omnichannel strategy allows Netflix to reach a diverse audience and maximise its media and marketing impact.
Owned Media
Paid Media
Earned Media
Partnerships
Netflix strategically partners with brands to amplify its shows' incremental reach and cultural impact. These collaborations include:
- Co-branded merchandise (e.g., Stranger Things Nike sneakers)
- Experiential marketing (e.g., Netflix & Bumble partnership)
- Product placement (e.g., Eggo waffles in Stranger Things)
- Cross-promotions (e.g., Spotify playlists)
These partnerships generate momentum, reach new audiences, and create additional revenue streams, demonstrating the effectiveness of this strategy for Netflix.
https://youtu.be/1vycaHQgYOs?si=bSNevNiHfZzeP_dv
Wednesday's show campaign in a nutshell:
- Global "anti-marketing" marketing campaign: Created a Twitter account for Wednesday, hijacking popular conversations like the Emmys and World Cup.
- Global Out-of-Home takeover: Dominated iconic locations like airports and train stations.
- TikTok dance hit.
Results:
- Highest-performing Season 1 show ever
- 25 billion TikTok views
- 250K+ Twitter followers
- 200+ trending topics
- 1 billion hours watched
Leveraging User Data for Personalisation
Netflix leverages data analytics to analyse user behaviour and personalise recommendations and marketing messages. By understanding individual preferences for genres, actors, or themes, Netflix can precisely target users with trailers and promotional content that resonate with their interests.
This personalised approach not only enhances the user experience but also significantly improves the effectiveness of marketing campaigns.
Activation and Retention Metrics: The Key to Revenue Generation
Netflix measures the success of its marketing programs through key metrics focused on activation and retention. These metrics offer valuable insights into the platform's effectiveness in attracting new subscribers and retaining existing ones.
There's a positive correlation between subscriber increase and revenue, meaning more subscribers generally lead to more revenue.
1. Activation Metrics:
Netflix tracks metrics like number of trial sign-ups, the percentage of free trials that convert into paid subscriptions, and the average time taken for a new user to watch their first piece of content.
By understanding and measuring viewer behaviour, and constantly optimising the time spent watching, the streaming service ensures its subscribers remain active and engaged.
2. Retention Metrics:
Retaining subscribers is crucial for long-term revenue growth in the subscription-based streaming industry. Netflix closely monitors retention through key metrics such as churn rate (the percentage of subscribers who cancel), average viewing time, retention curves, and frequency of content consumption.
For instance, high engagement levels with popular shows like Stranger Things indicate strong retention potential. Research suggests that users who invest significant time binge-watching a series are less likely to churn.
3. Personalisation
Netflix continuously analyses its content's performance to inform future production and marketing decisions. Metrics like viewer completion rates, user ratings, and social media buzz help Netflix understand audience preferences. Insights gleaned from this data guide show renewals and the development of new content, ensuring the platform consistently offers compelling viewing options.
Furthermore, Netflix's algorithms leverage user data to provide personalised recommendations, keeping subscribers engaged and invested in the platform.
This focus on user engagement is critical for Netflix's subscription-based model, where customer retention directly drives revenue.
Closing Thoughts
Netflix's data-driven, customer-centric marketing strategy is a prime example of successful media and marketing execution.
By building pre-release hype, utilising omnichannel campaigns, forming strategic partnerships, and personalising content, Netflix excels at both acquiring and retaining subscribers. This approach, fueled by insights from key performance indicators, drives sustained revenue growth, evidenced by the popularity of shows like Stranger Things and Wednesday.
Brands can learn from Netflix's success by:
- Building anticipation through early engagement.
- Embracing omnichannel marketing for broader reach.
- Partnering strategically to expand reach and create unique experiences.
- Personalising content and marketing messages based on data.
- Measuring and optimising activation and retention for continuous improvement.
Nicolas Vargas is Kaimera's head of digital