Netflix has begun incorporating third-party advertising onto their envelopes. Beginning last week, DVDs to certain customers in certain geographic regions were targeted with a Memoirs of a Geisha ad and this week Aeon Flux arrived at my door step. Also this week, I participated in an online customer survey specific to that envelop flap.
I don’t know why I didn’t think of this. I don’t know why Netflix hasn’t incorporated full-flap advertising sooner. As stated below, perhaps they needed to reach a “critical mass” of customers before they could enlist big-league sponsors. Not all advertising is bad. In many cases it can offset fees… perhaps this new revenue stream accounts for Netflix lowering subscription rates.
Unlike other mailings I receive, the ad is nicely incorporated into the actual envelope instead of troubling me with additional inserts to trash. Presenting advertising without alienating customers is a bit like walking a tightrope. The current method strikes me as a win-win endeavor. However, the moment ads start appearing in my email or interfere with browsing the Netflix website I’ll feel differently.
Brandweek says: Netflix ships one million DVDs a day, said Netflix spokesperson Ken Ross. Testing ad vehicles makes sense now that our subscriber base has reached real critical mass with 3.6 million customers currently and more than five million projected for next year. Netflix said it plans to roll out more advertising and will consider selling various ad placementson envelopes, on its Web site, in customer e-mails. The company expects to rotate creative on a weekly basis and in some cases feature multiple movie properties at the same time in a targeted manner.