Netflix projects it will double ad revenue in 2025 as it builds out in-house ad tech

Netflix says it’s firmly on track to “double” its advertising revenue this year, signaling a new phase for the streaming giant as it leans deeper into ad-supported streaming and its growing in-house ad tech platform. The milestone projection was revealed alongside Netflix’s second-quarter 2025 earnings results, which show the company pulling in $11.08 billion in revenue for Q2 alone — up 16% year over year.

The announcement underlines a strategic shift for Netflix: advertising is no longer just an experiment. It’s becoming a core growth engine, supported by a custom-built ad tech stack that the company describes as “foundational” for the future. According to Netflix’s shareholder letter, the platform aims to deliver better ad targeting, more precise measurement, and new ad formats that go beyond traditional commercial breaks.

Netflix’s ad-supported tier — now priced at $7.99 per month after a price hike in January — reaches over 94 million global users. And while rivals like Amazon Prime Video and Max have drawn criticism for doubling up on ad loads, Netflix is betting on fresh formats instead. During its Q2 earnings call, co-CEO Greg Peters confirmed that interactive ads will debut in the second half of 2025, and new ad placements — like ads appearing when viewers pause a show — are already in testing.

These initiatives come as Netflix’s overall viewing numbers remain robust. The company revealed that viewers streamed a staggering 95 billion hours of content in the first half of 2025. Older hits like Ozark and Orange is the New Black continue to rack up huge hours watched — each topping 100 million this year alone — alongside new titles like K-Pop Demon Hunters, which drew 37 million views since its June premiere. According to Netflix’s mid-year viewership report, the top series was Adolescence, clocking 145 million views so far this year.

Nearly half of the top-performing Netflix Originals came from titles released in 2023 or earlier, showing the enduring pull of the back catalog as the company layers on more advertising opportunities. Netflix’s revamped homepage, which rolled out to half of its global user base by May, is also part of its push to drive more engagement — and, in turn, more advertising value.

Unlike in past years, Netflix has stopped reporting quarterly subscriber additions, shifting the conversation to other growth levers such as advertising and live programming. With its massive reach and an audience that still logs billions of viewing hours each quarter, Netflix’s push to double its ad revenue is likely to shape the broader streaming ad market in 2025 and beyond.