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Why we care about RevOps: A marketer’s guide

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Why we care about RevOps: A marketer’s guide

The siloing of marketing and sales has never been good for business, and organizations are starting to agree. That’s given rise to RevOps, short for revenue operations, which is a relatively new organizational structure that seeks to improve alignment between marketing, sales and customer success by bringing separate operation teams together, establishing one reporting line and driving common revenue goals.

The rise of RevOps comes as companies realize that providing a stellar customer experience across all interactions from marketing, sales and service is key to driving revenue. And as customer journeys become more complex and more digital than ever, an alignment model like RevOps can ensure all teams are operating with shared goals and strategies.

But while the high-level promise of organizing these teams in RevOps models is attractive, these are still in the early phase of adoption and are being embraced in different forms by different brands.

This article provides an overview of what RevOps is, why organizations are rapidly embracing the concept, and how you can start taking steps toward implementing RevOps in your organization. We’ll cover:

Estimated reading time: 10 minutes

What is RevOps?

RevOps brings together people, processes, and data from across various departments in an organization, aligning them on three common goals::

  • Increasing profits by maximizing customer conversion and profit margin on sales. 
  • Cutting costs across various departments.
  • Finding new opportunities for revenue generation.

With RevOps, you have a dedicated function solely focused on analyzing and overseeing revenue maximization opportunities across the entire organization and customer life cycle.

What’s causing the rise in RevOps?

Traditionally, disconnected sales and marketing teams were the norm and seemed to be working well enough. Each department was expected to work toward meeting its own goals with little to no involvement in the financial and operational planning of another department.

However, this resulted in frequent miscommunication, duplicated efforts, and inconsistencies. Not to mention it only gets messier as you scale up and provide more offerings. There was a clear need for a better, more comprehensive business function that can maximize marketing budgets and user experience without causing big dents in the company’s operational budget.

RevOps is the perfect solution for this because it: 

  • Helps cut costs and save on the company’s overall expenditure. 
  • Looks for new opportunities for revenue generation.
issues revops is designed to tackle

How to ensure your RevOps team is successful

Revenue operations, like any other business function, needs to be implemented properly or else it runs the risk of failure. A survey of 270 B2B professionals in the US by RevOps automation vendor Openprise suggests RevOps is falling short and has yet to solve the long-established problem of aligning sales and marketing teams. So, how do you ensure your RevOps strategy is successful?

Let’s start with their fundamental structure. RevOps aims to link marketing, sales, and customer success. Both that doesn’t mean the entirety of those teams is linked into one gargantuan RevOps team. Rather, RevOps teams are compiled by linking key operations talent from within sales and marketing and organizing them into a single operating team.

The success of your RevOps team relies on their ability to act on three important pillars.

Strategy

The RevOps team’s job is to ease processes, find more efficient connections between the siloed departments, and detect pain points. It can do this by strategizing actionable, well-defined plans that are also goal-oriented and effectively communicated throughout the organization. 

Keeping your internal and external stakeholders in the loop and ensuring all departments work toward a common goal can help them make better decisions. The RevOps team is also expected to run regular analyses which evaluate market trends and opportunities. These can then be used to shape your business strategies and the actions of different departments. Simply put, supply your RevOps team with tons of market data. It’ll help them make better-informed decisions.

Process

Your RevOps team is also in charge of ensuring that all areas of the organization are running smoothly. A well-defined strategy leads to a smooth business process that ensures maximum efficiency and minimal usage of money and manpower. It’s up to the RevOps team to develop a smooth business process, communicate clearly with all teams involved, and regularly assess each step for effectiveness and potential areas of improvement.

If steps of the process are missed, or stages are out of order, it could ultimately result in inefficiency, delays, added costs, and customer dissatisfaction.

Insights

Insights allow for a consistent feedback loop regarding the above-mentioned strategies and processes. It provides answers to the questions: What are we doing? Is that working for the company? Is there scope for improvement? What other aspects of the strategy and process could be influencing our outcomes?

As mentioned above, industry insights are all about good data. These insights inform your RevOps team of current trends and how (and to what extent) they can be leveraged to help your business. Ultimately, RevOps is about finding and maximizing business opportunities.


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The benefits of RevOps implementation

People, processes, and information working in isolation within an organization can lead to many problems like duplicated efforts, miscommunication, inconsistencies, and inaccurate financial projections. Here’s how RevOps can help solve this:

  • Alignment: By bringing together customer-facing departments like sales, marketing, and customer service, businesses can focus on shared goals across departments. It can also ensure that the results of every campaign and customer initiative are measurable from beginning to end.
  • Simplification: Employing RevOps simplifies collaboration, removes conflicts and silos amongst departments, and allows for better communication and data to support team members, empowering them to make better decisions and achieve better outcomes. This boosts overall efficiency and creates a better customer experience. 
  • More accuracy: Forecasting also becomes more accurate, as information is accessible across departments. Having a special RevOps team can make it easier for different teams to collaborate and come up with robust business strategies.
  • More strategic use of technology: RevOps can help a company make better use of its technological resources. It can increase conversion, shorten sales cycles, and improve forecast accuracy by using AI and automation to boost accountability across the customer-facing teams.
  • Better culture: When you use RevOps to bring teams together and share information, you’re redirecting to transparency and data-driven teamwork. There is a common goal and measurable results that everyone can work toward, preventing conflicts regarding blame or credit.

Ultimately, all of these benefits result in higher success rates and shorter sales cycles, which, in turn, translates to higher revenue and growth.

Frequently asked questions about RevOps

Here are some of the most popular questions marketers ask regarding RevOps.

What is the difference between RevOps and Sales Ops?

Sales operations focus on facilitating sales functions and allowing sales representatives to focus on selling.

On the other hand, revenue operations is about making the entire revenue-generating side of the business more effective at what they do. It works by centralizing four previously disconnected departments, including sales operations, marketing operations, customer success operations, and systems. RevOps is not only about achieving revenue goals but also about providing a positive experience for employees and customers.

What problems does RevOps solve?

Although RevOps focuses on maximizing brand revenue, its benefits go beyond this function. A well-trained RevOps team can resolve a whole host of problems, from improving data quality to building more sustainable work processes.

RevOps builds processes at every stage. RevOps teams help brands unify processes across every department by aligning their functions with campaign goals. Aligning these processes can also help prevent discrepancies in communication, helping craft a consistent and excellent experience for customers. 

It addresses inconsistent data and duplicated efforts. RevOps can help marketers identify data issues such as duplicate contacts, inconsistent records, and more. This can help it track the flow of (and any leaks in) revenue throughout the organization.

It breaks down departmental and data silos. RevOps facilitates the breakdown of company silos by tying the revenue success of every department together. It can help resolve disputes between departments by creating a collaborative mindset with a unified goal.

How do you measure the success of RevOps?

​​RevOps is a collaborative, customer-centric approach to maximizing a business’s revenue potential and minimizing leaks. To measure how well your RevOps team is doing, you should turn toward a constant feedback loop and transparent sharing of information. However, the size of your venture and the length of the project would also play a role in gauging RevOps success. 

Ideally, you can track progress by assessing your short-term and long-term revenue goals. You can align short-term goals with your company’s strategies, which can then be divided into actionable parts. The outcome of these actions can be measured, with reference to your goals, through a goal-setting framework.

Long-term goals are slightly more complicated to measure and involve various analyses, such as evaluating your pricing, competition, sales funnel, and churn:

Pricing analysis. Knowing your company’s pricing history can help you understand how customers view your product. It can also help you understand whether you can increase prices without losing customers.

Competitor analysis. It’s also helpful to understand what your competitors are doing. This doesn’t have to influence your pricing, but it can help you reevaluate your selling strategy and revisit your value proposition.

Sales funnel analysis. This allows you to focus on revenue leaks by identifying the barriers to successful conversions. Knowing this information can help your team understand why there is a drop-off at a certain stage and take corrective measures.

Churn analysis. This helps you understand why customers aren’t coming back for repeat business. It may be the case that you have a solid selling strategy, but your product just isn’t good enough. If that is the case, it makes sense to invest time in improving your product before trying to sell more.

How to make the transition to RevOps

According to Gartner, 75% of the top companies in the world (in terms of growth) will deploy a RevOps model by 2025. Plus, the number of “director of revenue operations” and “VP of revenue operations” job titles is rapidly increasing. 

Are you wondering how you can join the ever-increasing number of companies using RevOps? Here are a few ways: 

Audit your processes to find areas of disconnect between departments. Gather and align all your existing data with your customer’s lifecycle stage and create a plan to fill in any gaps. Audit the technology you use in each of your customer-facing departments to ensure that they’re accurately tracking data.

Define your lifecycle stage definitions for your team. Evaluate your data to ensure you’re getting insights into the entire 360-degree customer journey and the financial health of your business. In addition, regularly audit your tech stack to identify and combat any redundancies and discrepancies, and brief your team about the impact RevOps processes have on various aspects of a company’s revenue.

Improve your customer experience. Put together a plan for improving customer acquisition, relying on inbound sales strategies, follow-up emails, and outbound sales outreach emails. Build a RevOps dashboard that highlights your current problem areas.

Maintain consistency with your RevOps growth strategy. Set regular RevOps check-ins to maintain alignment by reinforcing revenue and growth goals with marketing, sales, and service heads to ensure that they’re all on the same page. Create and follow an implementation plan to boost the adoption and optimization of your RevOps strategy.

Resources for learning more about RevOps

Maximizing revenue operations for your organization is no simple task. But, with a qualified team and the right assets, marketers will have a greater chance of achieving their goals.

Here are some helpful RevOps resources to help you choose the best solutions for your organization:


About The Author

1647558052 623 Why we care about RevOps A marketers guide
Akshat Biyani is a Contributing Editor to MarTech, a former analyst who has a strong interest in writing about technology and its effect on marketing.


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A deeper dive into data, personalization and Copilots

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A deeper dive into data, personalization and Copilots

Salesforce launched a collection of new, generative AI-related products at Connections in Chicago this week. They included new Einstein Copilots for marketers and merchants and Einstein Personalization.

To better understand, not only the potential impact of the new products, but the evolving Salesforce architecture, we sat down with Bobby Jania, CMO, Marketing Cloud.

Dig deeper: Salesforce piles on the Einstein Copilots

Salesforce’s evolving architecture

It’s hard to deny that Salesforce likes coming up with new names for platforms and products (what happened to Customer 360?) and this can sometimes make the observer wonder if something is brand new, or old but with a brand new name. In particular, what exactly is Einstein 1 and how is it related to Salesforce Data Cloud?

“Data Cloud is built on the Einstein 1 platform,” Jania explained. “The Einstein 1 platform is our entire Salesforce platform and that includes products like Sales Cloud, Service Cloud — that it includes the original idea of Salesforce not just being in the cloud, but being multi-tenancy.”

Data Cloud — not an acquisition, of course — was built natively on that platform. It was the first product built on Hyperforce, Salesforce’s new cloud infrastructure architecture. “Since Data Cloud was on what we now call the Einstein 1 platform from Day One, it has always natively connected to, and been able to read anything in Sales Cloud, Service Cloud [and so on]. On top of that, we can now bring in, not only structured but unstructured data.”

That’s a significant progression from the position, several years ago, when Salesforce had stitched together a platform around various acquisitions (ExactTarget, for example) that didn’t necessarily talk to each other.

“At times, what we would do is have a kind of behind-the-scenes flow where data from one product could be moved into another product,” said Jania, “but in many of those cases the data would then be in both, whereas now the data is in Data Cloud. Tableau will run natively off Data Cloud; Commerce Cloud, Service Cloud, Marketing Cloud — they’re all going to the same operational customer profile.” They’re not copying the data from Data Cloud, Jania confirmed.

Another thing to know is tit’s possible for Salesforce customers to import their own datasets into Data Cloud. “We wanted to create a federated data model,” said Jania. “If you’re using Snowflake, for example, we more or less virtually sit on your data lake. The value we add is that we will look at all your data and help you form these operational customer profiles.”

Let’s learn more about Einstein Copilot

“Copilot means that I have an assistant with me in the tool where I need to be working that contextually knows what I am trying to do and helps me at every step of the process,” Jania said.

For marketers, this might begin with a campaign brief developed with Copilot’s assistance, the identification of an audience based on the brief, and then the development of email or other content. “What’s really cool is the idea of Einstein Studio where our customers will create actions [for Copilot] that we hadn’t even thought about.”

Here’s a key insight (back to nomenclature). We reported on Copilot for markets, Copilot for merchants, Copilot for shoppers. It turns out, however, that there is just one Copilot, Einstein Copilot, and these are use cases. “There’s just one Copilot, we just add these for a little clarity; we’re going to talk about marketing use cases, about shoppers’ use cases. These are actions for the marketing use cases we built out of the box; you can build your own.”

It’s surely going to take a little time for marketers to learn to work easily with Copilot. “There’s always time for adoption,” Jania agreed. “What is directly connected with this is, this is my ninth Connections and this one has the most hands-on training that I’ve seen since 2014 — and a lot of that is getting people using Data Cloud, using these tools rather than just being given a demo.”

What’s new about Einstein Personalization

Salesforce Einstein has been around since 2016 and many of the use cases seem to have involved personalization in various forms. What’s new?

“Einstein Personalization is a real-time decision engine and it’s going to choose next-best-action, next-best-offer. What is new is that it’s a service now that runs natively on top of Data Cloud.” A lot of real-time decision engines need their own set of data that might actually be a subset of data. “Einstein Personalization is going to look holistically at a customer and recommend a next-best-action that could be natively surfaced in Service Cloud, Sales Cloud or Marketing Cloud.”

Finally, trust

One feature of the presentations at Connections was the reassurance that, although public LLMs like ChatGPT could be selected for application to customer data, none of that data would be retained by the LLMs. Is this just a matter of written agreements? No, not just that, said Jania.

“In the Einstein Trust Layer, all of the data, when it connects to an LLM, runs through our gateway. If there was a prompt that had personally identifiable information — a credit card number, an email address — at a mimum, all that is stripped out. The LLMs do not store the output; we store the output for auditing back in Salesforce. Any output that comes back through our gateway is logged in our system; it runs through a toxicity model; and only at the end do we put PII data back into the answer. There are real pieces beyond a handshake that this data is safe.”

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Why The Sales Team Hates Your Leads (And How To Fix It)

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Why The Sales Team Hates Your Leads (And How To Fix It)

Why The Sales Team Hates Your Leads And How To

You ask the head of marketing how the team is doing and get a giant thumbs up. 👍

“Our MQLs are up!”

“Website conversion rates are at an all-time high!”

“Email click rates have never been this good!”

But when you ask the head of sales the same question, you get the response that echoes across sales desks worldwide — the leads from marketing suck. 

If you’re in this boat, you’re not alone. The issue of “leads from marketing suck” is a common situation in most organizations. In a HubSpot survey, only 9.1% of salespeople said leads they received from marketing were of very high quality.

Why do sales teams hate marketing-generated leads? And how can marketers help their sales peers fall in love with their leads? 

Let’s dive into the answers to these questions. Then, I’ll give you my secret lead gen kung-fu to ensure your sales team loves their marketing leads. 

Marketers Must Take Ownership

“I’ve hit the lead goal. If sales can’t close them, it’s their problem.”

How many times have you heard one of your marketers say something like this? When your teams are heavily siloed, it’s not hard to see how they get to this mindset — after all, if your marketing metrics look strong, they’ve done their part, right?

Not necessarily. 

The job of a marketer is not to drive traffic or even leads. The job of the marketer is to create messaging and offers that lead to revenue. Marketing is not a 100-meter sprint — it’s a relay race. The marketing team runs the first leg and hands the baton to sales to sprint to the finish.

​​

via GIPHY

To make leads valuable beyond the vanity metric of watching your MQLs tick up, you need to segment and nurture them. Screen the leads to see if they meet the parameters of your ideal customer profile. If yes, nurture them to find out how close their intent is to a sale. Only then should you pass the leads to sales. 

Lead Quality Control is a Bitter Pill that Works

Tighter quality control might reduce your overall MQLs. Still, it will ensure only the relevant leads go to sales, which is a win for your team and your organization.

This shift will require a mindset shift for your marketing team: instead of living and dying by the sheer number of MQLs, you need to create a collaborative culture between sales and marketing. Reinforce that “strong” marketing metrics that result in poor leads going to sales aren’t really strong at all.  

When you foster this culture of collaboration and accountability, it will be easier for the marketing team to receive feedback from sales about lead quality without getting defensive. 

Remember, the sales team is only holding marketing accountable so the entire organization can achieve the right results. It’s not sales vs marketing — it’s sales and marketing working together to get a great result. Nothing more, nothing less. 

We’ve identified the problem and where we need to go. So, how you do you get there?

Fix #1: Focus On High ROI Marketing Activities First

What is more valuable to you:

  • One more blog post for a few more views? 
  • One great review that prospective buyers strongly relate to?

Hopefully, you’ll choose the latter. After all, talking to customers and getting a solid testimonial can help your sales team close leads today.  Current customers talking about their previous issues, the other solutions they tried, why they chose you, and the results you helped them achieve is marketing gold.

On the other hand, even the best blog content will take months to gain enough traction to impact your revenue.

Still, many marketers who say they want to prioritize customer reviews focus all their efforts on blog content and other “top of the funnel” (Awareness, Acquisition, and Activation) efforts. 

The bottom half of the growth marketing funnel (Retention, Reputation, and Revenue) often gets ignored, even though it’s where you’ll find some of the highest ROI activities.

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Most marketers know retaining a customer is easier than acquiring a new one. But knowing this and working with sales on retention and account expansion are two different things. 

When you start focusing on retention, upselling, and expansion, your entire organization will feel it, from sales to customer success. These happier customers will increase your average account value and drive awareness through strong word of mouth, giving you one heck of a win/win.

Winning the Retention, Reputation, and Referral game also helps feed your Awareness, Acquisition, and Activation activities:

  • Increasing customer retention means more dollars stay within your organization to help achieve revenue goals and fund lead gen initiatives.
  • A fully functioning referral system lowers your customer acquisition cost (CAC) because these leads are already warm coming in the door.
  • Case studies and reviews are powerful marketing assets for lead gen and nurture activities as they demonstrate how you’ve solved identical issues for other companies.

Remember that the bottom half of your marketing and sales funnel is just as important as the top half. After all, there’s no point pouring leads into a leaky funnel. Instead, you want to build a frictionless, powerful growth engine that brings in the right leads, nurtures them into customers, and then delights those customers to the point that they can’t help but rave about you.

So, build a strong foundation and start from the bottom up. You’ll find a better return on your investment. 

Fix #2: Join Sales Calls to Better Understand Your Target Audience

You can’t market well what you don’t know how to sell.

Your sales team speaks directly to customers, understands their pain points, and knows the language they use to talk about those pains. Your marketing team needs this information to craft the perfect marketing messaging your target audience will identify with.

When marketers join sales calls or speak to existing customers, they get firsthand introductions to these pain points. Often, marketers realize that customers’ pain points and reservations are very different from those they address in their messaging. 

Once you understand your ideal customers’ objections, anxieties, and pressing questions, you can create content and messaging to remove some of these reservations before the sales call. This effort removes a barrier for your sales team, resulting in more SQLs.

Fix #3: Create Collateral That Closes Deals

One-pagers, landing pages, PDFs, decks — sales collateral could be anything that helps increase the chance of closing a deal. Let me share an example from Lean Labs. 

Our webinar page has a CTA form that allows visitors to talk to our team. Instead of a simple “get in touch” form, we created a drop-down segmentation based on the user’s challenge and need. This step helps the reader feel seen, gives them hope that they’ll receive real value from the interaction, and provides unique content to users based on their selection.

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So, if they select I need help with crushing it on HubSpot, they’ll get a landing page with HubSpot-specific content (including a video) and a meeting scheduler. 

Speaking directly to your audience’s needs and pain points through these steps dramatically increases the chances of them booking a call. Why? Because instead of trusting that a generic “expert” will be able to help them with their highly specific problem, they can see through our content and our form design that Lean Labs can solve their most pressing pain point. 

Fix #4: Focus On Reviews and Create an Impact Loop

A lot of people think good marketing is expensive. You know what’s even more expensive? Bad marketing

To get the best ROI on your marketing efforts, you need to create a marketing machine that pays for itself. When you create this machine, you need to think about two loops: the growth loop and the impact loop.

1716755163 789 Why The Sales Team Hates Your Leads And How To1716755163 789 Why The Sales Team Hates Your Leads And How To
  • Growth loop — Awareness ➡ Acquisition ➡ Activation ➡ Revenue ➡ Awareness: This is where most marketers start. 
  • Impact loop — Results ➡ Reviews ➡ Retention ➡ Referrals ➡ Results: This is where great marketers start. 

Most marketers start with their growth loop and then hope that traction feeds into their impact loop. However, the reality is that starting with your impact loop is going to be far more likely to set your marketing engine up for success

Let me share a client story to show you what this looks like in real life.

Client Story: 4X Website Leads In A Single Quarter

We partnered with a health tech startup looking to grow their website leads. One way to grow website leads is to boost organic traffic, of course, but any organic play is going to take time. If you’re playing the SEO game alone, quadrupling conversions can take up to a year or longer.

But we did it in a single quarter. Here’s how.

We realized that the startup’s demos were converting lower than industry standards. A little more digging showed us why: our client was new enough to the market that the average person didn’t trust them enough yet to want to invest in checking out a demo. So, what did we do?

We prioritized the last part of the funnel: reputation.

We ran a 5-star reputation campaign to collect reviews. Once we had the reviews we needed, we showcased them at critical parts of the website and then made sure those same reviews were posted and shown on other third-party review platforms. 

Remember that reputation plays are vital, and they’re one of the plays startups often neglect at best and ignore at worst. What others say about your business is ten times more important than what you say about yourself

By providing customer validation at critical points in the buyer journey, we were able to 4X the website leads in a single quarter!

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So, when you talk to customers, always look for opportunities to drive review/referral conversations and use them in marketing collateral throughout the buyer journey. 

Fix #5: Launch Phantom Offers for Higher Quality Leads 

You may be reading this post thinking, okay, my lead magnets and offers might be way off the mark, but how will I get the budget to create a new one that might not even work?

It’s an age-old issue: marketing teams invest way too much time and resources into creating lead magnets that fail to generate quality leads

One way to improve your chances of success, remain nimble, and stay aligned with your audience without breaking the bank is to create phantom offers, i.e., gauge the audience interest in your lead magnet before you create them.

For example, if you want to create a “World Security Report” for Chief Security Officers, don’t do all the research and complete the report as Step One. Instead, tease the offer to your audience before you spend time making it. Put an offer on your site asking visitors to join the waitlist for this report. Then wait and see how that phantom offer converts. 

This is precisely what we did for a report by Allied Universal that ended up generating 80 conversions before its release.

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The best thing about a phantom offer is that it’s a win/win scenario: 

  • Best case: You get conversions even before you create your lead magnet.
  • Worst case: You save resources by not creating a lead magnet no one wants.  

Remember, You’re On The Same Team 

We’ve talked a lot about the reasons your marketing leads might suck. However, remember that it’s not all on marketers, either. At the end of the day, marketing and sales professionals are on the same team. They are not in competition with each other. They are allies working together toward a common goal. 

Smaller companies — or anyone under $10M in net new revenue — shouldn’t even separate sales and marketing into different departments. These teams need to be so in sync with one another that your best bet is to align them into a single growth team, one cohesive front with a single goal: profitable customer acquisition.

Interested in learning more about the growth marketing mindset? Check out the Lean Labs Growth Playbook that’s helped 25+ B2B SaaS marketing teams plan, budget, and accelerate growth.


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How to Buy Ads on Netflix: Specs & Tactics for Marketers

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How to Buy Ads on Netflix: Specs & Tactics for Marketers

Streaming


By Emily Sullivan

Netflix, the streaming giant known for binge-watching and award-winning originals, sent shockwaves through the industry in 2022 by announcing an ad-supported tier. This move was likely fueled by a desire to reach new audiences, combat rising subscription costs, and potentially even fend off competition from other OTT platforms. These ads could lead to strong growth potential with advertisers eager to tap into Netflix’s massive user base. 

If you’re unfamiliar with how Netflix works, it’s important to know that Netflix is an OTT (Over-the-Top) platform, meaning it delivers streaming content directly over the internet, bypassing traditional cable or satellite providers. It’s one of the most popular OTT platforms globally, but in the ad supported video on demand (AVOD) space, Netflix is a relative newcomer. Understanding this new facet of Netflix is crucial for marketers looking to capitalize on this advertising opportunity.

Interested in learning more about Netflix and its advertising offerings? You came to the right place. In this post, we’ll cover the foundational elements of Netflix ads including ad types, specs, advertising best practices, and more. 

Why Did Netflix Start Offering Ads?

In November 2022, Netflix introduced an ad-supported tier. This move marked a significant shift, as Netflix was previously known for its commitment to an ad-free experience. The decision likely stemmed from a desire to tap into new revenue streams. With consumers increasingly cost-conscious, an ad-supported tier provided a way to attract budget-minded viewers while still offering a premium ad-free option, similar to established AVOD providers like Hulu and Peacock.

Initially, the launch was off to a slower start, with few people signing up for the ad supported tier and Netflix failing to meet guarantees, but things are quickly turning around and savvy advertisers are taking notice. Netflix boasts a massive user base, with roughly 270 million paid subscribers – a household name with immense reach. In fact, 40% of new Netflix sign-ups are choosing the ad-supported tier, translating to a total of 40 million users. Netflix’s ad platform presents a unique opportunity for marketers looking to reach a large and engaged audience.

“Our goal isn’t just to offer the same products and tools the industry has come to expect — although we’ve made a lot of progress on that front over the last year. It’s to build something bigger and better than what exists today. We want to shape the future of advertising on Netflix and help marketers tap into the amazing fandom generated by our must-watch shows and movies.”

Amy ReinhardPresident, Advertising at Netflix

How to Start Advertising on Netflix

So, you’re interested in capitalizing on Netflix’s massive audience? Here’s a breakdown of the three main ways to buy ads on their platform:

1. Netflix Ads Manager

This platform, powered by Microsoft, allows you to directly purchase ad space on Netflix. However, be prepared to meet their minimum spending requirements, which can be substantial and offer little room for negotiation.

2. Partnering with an Agency

While the minimum spend might be high for direct buys, streaming agencies like Tinuiti can be a valuable asset. They can not only help you navigate the intricacies of Netflix advertising, but also:

  • Consolidate Streaming Data: The streaming landscape is fragmented, with viewers spread across multiple platforms. Agencies can collect data from these various platforms and turn it into a unified, actionable strategy for your advertising campaign.
  • Expertise and Negotiation: Agencies bring a wealth of experience to the table. They can leverage their knowledge of the advertising landscape and potentially negotiate more favorable terms on your behalf.

3. Ad Tech Partners

Companies like Microsoft offer ad tech solutions that provide technical capabilities to streamline your advertising efforts. These partners typically take a more hands-off approach compared to agencies, focusing on the technical aspects of ad delivery and optimization.

The best option depends on your budget, experience level, and campaign goals. If you’re a large brand with a significant budget and an in-house marketing team, going directly through Netflix Ads Manager might be a good fit. However, for most businesses, partnering with an agency or ad tech provider can offer valuable support and expertise.

Ad Types & Specs for Netflix Ads

Now that you understand the different avenues for buying ads on Netflix, let’s dive into the nitty-gritty of ad formats and specifications:

Netflix Ad Types

Example of a Netflix Ad Featuring Smartfood and Love is Blind

Currently, Netflix offers two main ad types, pre-roll ads and mid-roll ads. Netflix notes that users can expect to see a few short ads per hour and that they aim to place ads during natural plot breaks for a more seamless experience.   

Let’s take a look at each option… 

  • Pre-roll Ads: These commercials play before a program or movie begins, similar to traditional linear TV advertising.
  • Mid-roll Ads: These ads appear in the middle of a program, typically inserted during natural breaks in the content.

During paused playback, ad breaks are displayed on the progress bar. As an ad break begins, the upper-right corner reveals the number of ads included in that break.

While Netflix advertising is fairly new, the platform has made a few important announcements to look out for in 2024. Netflix plans to introduce a new binge ad format for global advertisers, offering viewers an ad-free fourth episode after watching three consecutive episodes. Additionally, QR code integration in U.S. advertising will launch early in the year. Sponsorship opportunities, including Title, Moment, and Live Sponsorships, are also now available in the U.S. and will expand globally in 2024.

Netflix also offers live opportunities including WWE Raw (launching January 2025), which will air live on Netflix 52 weeks of the year, and the NFL Christmas games which Netflix just secured the rights to. These live events provide advertisers the opportunity to reach ad and ad-free members of Netflix in a live environment with traditional ad formats.

Last but not least, Netflix recently announced they are adding Pause Ads to their suite of custom ad units. This is currently in beta and is expected to be rolled out to the general marketplace in H2 2024.

Netflix Ad Specs

When it comes to advertising specs, it’s important to follow Netflix’s guidelines which include the following… 

  • Supported Lengths: Netflix accepts ads in 10, 15, 20, 30, and 60-second durations.
  • File Format: Ads must be submitted in MP4 or MOV format.
  • Aspect Ratio & Resolution: Maintain a 16:9 aspect ratio and a resolution of either 1920×1080 HD or 1280×720 HD.
  • QR Codes on the Horizon: Netflix is preparing to support QR code integration within commercials, allowing viewers to seamlessly access additional information or promotions.

Hot Tip: Stay tuned for updates, as Netflix is constantly evolving its ad platform.

Why Advertise on Netflix?

Advertising on Netflix offers several unique advantages for advertisers including… 

  • Massive Reach – Netflix boasts a massive subscriber base worldwide (globally, there were around 270 million Netflix subscribers in Q1 2024), providing advertisers with access to a vast and diverse audience. These viewers are often highly engaged, spending significant time on the platform consuming content. In fact, Over 70% of Netflix’s ad-supported members watch for more than 10 hours a month – which is 15 percentage points higher than the nearest competitor according to Nielsen.
  • Targeting – Netflix collects extensive data on user preferences and behavior, enabling precise targeting of advertisements based on demographics, interests, viewing history, and more. This targeted approach increases the relevance and effectiveness of ads, maximizing ROI for advertisers (more on this below).
  • Global Reach and Localization – With a presence in numerous countries around the world, Netflix offers advertisers the opportunity to reach audiences on a global scale. Additionally, the platform’s localization capabilities enable tailored advertising campaigns to resonate with specific regional or cultural audiences.
  • Unskippable Ads – Unlike some streaming advertising platforms, Netflix ads are unskippable, guaranteeing your message reaches viewers.
  • Positive User Experience – Netflix prioritizes a positive user experience, so it’s unlikely viewers will see the same ad twice in a single episode. However, there’s a chance you might encounter the same ad later during your viewing session. It’s also important to note that children’s profiles maintain their ad-free experience.
  • Ad Delivery & Blocking – Since ads are delivered server-side, ad blockers are ineffective on Netflix. Additionally, playback automatically pauses if you minimize the window while an ad is playing, ensuring your message is seen.

Best Practices When Advertising on Netflix

When advertising on Netflix, it’s essential to understand the platform’s unique capabilities and audience targeting options to maximize the effectiveness of your campaigns. Check out a few best practices you need to consider… 

Explore Audience Targeting Capabilities

Netflix offers several audience targeting capabilities for advertisers on their ad-supported tier. These capabilities focus on three main areas: demographics, viewing habits, and content context. Here’s a breakdown:

Demographics:

  • Age: Advertisers can target users by age groups, like 18-34, 35+, etc.
  • Gender: Ads can be shown to specific genders (male or female).
  • Location: Targeting can be set by country or even state (in the U.S.).

Viewing Habits:

  • Genre: This lets advertisers target users based on the genres they watch, like comedy, drama, action, etc.

Content Context:

  • Top 10: Ads can be placed before or after shows and movies on Netflix’s daily Top 10 list, ensuring high visibility.

Advertisers also have the option to choose where they don’t want their ads to appear. For example, they can avoid showing ads on programs with mature themes or content that may not align with their brand values.

By using a combination of these targeting options, advertisers can reach a more precise audience interested in their product or service. This increases the ad’s relevance to viewers and potentially improves the ad campaign’s effectiveness.

It’s also important to note that Netflix now has the ability to target advertiser first party data. The platform currently has two approved DMPs: Liveramp or Adobe. Advertisers who work with either of these DMPs can upload first party data for targeting or suppression.

It’s important to note that Netflix’s ad targeting is still evolving. While it doesn’t offer some of the more advanced options found on other platforms, they are working on expanding their capabilities.

Test Your Ad Creative

Just like any other marketing campaign, testing your ad creative on Netflix is vital for optimizing performance. Here are some key reasons to test your ads:

  • Discover What Works: Testing allows you to compare different ad variations and identify which elements resonate most with your target audience. This could involve testing variations in messaging, visuals, calls to action, or even ad length.
  • Data-Driven Decisions: Testing provides valuable data and insights. You can track metrics like click-through rates, completion rates, and brand recall to see which ad versions generate the best results. Don’t rely on guesswork. Testing helps you move beyond assumptions and identify what truly connects with viewers.
  • Meet Audience Expectations: Netflix viewers anticipate premium content, including ads. Testing ad creative ensures that your commercials meet these expectations by delivering high-quality, engaging content that resonates with the audience.
  • Optimize Performance: Testing allows you to refine your ad creative to achieve optimal performance. By experimenting with different elements such as messaging, visuals, and calls to action, you can identify the most effective combinations that drive engagement and conversion.
  • Enhance Relevance: Testing helps ensure that your ad creative remains relevant to your target audience. By continuously testing and refining your approach, you can adapt to changing consumer preferences and market trends, ensuring that your ads stay impactful and resonant.
  • Maximize ROI: Effective testing enables you to make data-driven decisions that maximize ROI. By identifying and scaling the best-performing ad creative, you can allocate your advertising budget more efficiently and achieve greater results.

Measure and Analyze Your Results

Netflix doesn’t offer 1:1 conversion measurement for ad buyers (yet) – but they do have brand awareness and lift studies they offer advertisers so keep this in mind when measuring and analyzing your results. 

The platform did recently announce that this summer, Netflix will expand its buying capabilities to include The Trade Desk, Google’s Display & Video 360, and Magnite who will join Microsoft as the main programmatic partners for advertisers.

Starting in the second half of 2024, Netflix just announced that the following third party measurement partners (partnering to measure and verify the impact of advertiser campaigns) will also be added: Affinity Solutions, iSpotTV, NCSolutions, Videoamp, DCM and TVision.

They also announced Netflix will launch an in-house advertising technology platform, by the end of 2025. This will give advertisers new ways to buy, new insights to leverage, and new ways to measure impact. 

Is Netflix Advertising Right For Your Brand?

Overall, Netflix advertising offers the unparalleled reach of a massive, highly-engaged audience. This can be a strategic choice for brands seeking broad awareness and brand association with premium content.

If you’re interested in exploring advertising opportunities on Netflix for your brand, consider reaching out to the Tinuiti team. Our expertise can provide guidance and assistance in navigating the complexities of advertising on the platform, maximizing your campaign’s effectiveness and ROI. 

Don’t miss out on the opportunity to showcase your brand on one of the world’s largest streaming platforms—connect with Tinuiti today to get started.

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