The news: Netflix’s ad business is rapidly expanding. Its ad tier, now a major growth engine, will account for nearly 10% of global CTV ad spending in 2027, per WARC Media. That positions Netflix to capture a major share of the estimated $42.3 billion in US CTV ad spending we forecast in 2027.

The streaming platform anticipates doubling its ad revenues this year to reach $3 billion.

Zooming out: Ads are Netflix’s fastest growing segment. Netflix is attracting ad spending and a larger share of the CTV market through a strategy centered on live sports, cultural events, and strategies tailored to Gen Z audiences, WARC Media’s insights analyst Celeste Hung told Mediapost.