Netflix lowers its 2026 ad revenue forecast to $2.7bn after a slower ad tools rollout

Netflix ad revenue will reach about $2.7bn in 2026, the company said in its third-quarter letter to shareholders on 20 October. In July it still expected about $3bn.

Netflix says some ad features arrived late

The letter puts the cut down to a “slightly slower than expected rollout” of some ad product features. Co-CEO Greg Peters told analysts about delays in the rollout and in partner integrations, Adweek reported. Ad revenue has still grown by more than 80% this year, according to AdExchanger. Netflix had aimed to double it again.

Total revenue in the quarter rose 12% to $12.9bn, in line with the company’s forecast. Netflix now expects $51.1bn for the full year, slightly below the middle of its earlier range. Its shares fell nearly 6% in after-hours trading. The results followed job cuts affecting about 1,000 staff earlier in October.

The Trade Desk starts buying Netflix ads in November

On the same day, Netflix introduced the Netflix Pixel, a tag for measuring sales and brand lift. It works next to the Conversions API launched in March. From November, The Trade Desk joins Amazon DSP and Yahoo DSP as a third outside platform for buying Netflix ads automatically. The letter also names MercadoLibre in Latin America and Adform in Europe, the Middle East and Africa as ad tech partners. It adds that buyers can now see reach, frequency and attribution inside their buying platforms.

Netflix takes its ad plan to 15 more countries in 2027

The cheaper plan with ads will launch in 15 new countries next year. The first group arrives in March 2027: nine countries in Europe, the Middle East and Africa, plus Colombia, Peru and New Zealand. Poland and Sweden are among the nine European markets announced earlier.

The Trade Desk gains access to Netflix ads it could not buy before. Amazon and Yahoo lose their place as the only outside platforms selling them.