Netflix nabs another top Snap exec to build its advertising business

• Netflix has drafted another top Snap alum to help build the streamer’s new ads tier.
• David Roter joined from Snap, where he worked with now-Netflix ad leaders Jeremi Gorman and Peter Naylor.
• Netflix has been recruiting staff and cutting prices to get advertisers on board.

Netflix has hired another top Snap alum to help build the streaming service’s new advertising tier.

David Roter has joined the Snap streamer alongside Jeremi Gorman and Peter Naylor. Roter previously worked at Snap as VP, Global Agency & Brand Partnerships, where he was credited with helping engineer the company’s ad turnaround a few years ago; he and fellow VP Naylor were two of the company’s top ad executives under then-chief business officer Gorman. Roter previously held senior sales positions at Twitter (now X) and ESPN.

Advertisers have expressed dissatisfaction with the rate of growth of Netflix’s ad tiers since the streamer’s Basic with Ads offering was launched last November, three months after Gorman was named president, worldwide advertising, and Naylor was named VP, advertising sales. Marketers are excited about having another high-quality ad environment with a desirable audience, but they believe the offering is still insufficient to justify large investments.

In August, Netflix announced that it had signed up 10 million monthly active users for its ad-supported plan, with signups increasing since the company began cracking down on password sharing in May. In its most recent earnings call, the streamer admitted that its ad business is still small, but that it expects it to generate 10% of revenue in the future.

“We’re very interested because it’s premium content,” said one top ad buyer in August to Insider. “They’re still a minor player.”

Netflix has taken steps in recent months to increase its appeal to advertisers. It has expanded its advertising team and formed a client council to solicit feedback from key brands and agencies. It has also reduced rates and announced measurement and targeting initiatives that will allow advertisers to run advertisements against popular shows or new series. It has reduced its CPM (cost per 1,000 viewers) by about 30%, according to two ad executives, from an initial rate of up to $65.

Other formats that will expand advertisers’ inventory beyond 15- and 30-second spots, such as in-show product placements, homescreen placements, and interactive ads, are also on the horizon, according to ad buyers.