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Mike Fowler
While some attribute this to a post-Covid consumer reaction, Netflix is scrambling to address the issue and appease shareholders. The company is even toying with the idea of offering a cheaper, ad-based streaming service and cracking down on password sharing to help boost revenue.
Despite recent challenges, the question remains: How did Netflix go from Blockbuster competitor to global content producer and streaming giant? Who is the Netflix target audience and how does Netflix marketing strategy appeal to them so successfully?
The Netflix target audience is located worldwide in around 190 countries. The typical age of Netflix users is in the younger adult age bracket, a member of Gen Z or Millenials, and with a lower income range of $25-50K.
In fact, 54% of Gen X and 39% of Baby Boomers are reflected in Netflix viewer demographics as of 2020. In the US, Hispanic Americans are more likely to have a Netflix subscription, with 70% saying they were subscribed compared to 61% of white Americans. The average Netflix target consumer is not highly educated, with close to 70% having some or no college education.
Once, Netflix users had a majority base in the US, however this is no longer the case. Worldwide, Netflix subscriber numbers are split quite evenly between North America, and Europe, Africa and the Middle East combined, with Latin America and Asia Pacific trailing behind.
In contrast, Netflix already has high penetration in the US, with 70% of US broadband homes subscribed to the streaming service. This points to the fact that the US is a saturated and mature market, with less potential room for growth than newer target markets in Asia.
While the largest group falls into the $35-50K income bracket, more affluent consumers make up a large chunk of the Netflix target market, with 40% earning $75K or above. Password sharing is rife, with 70% of Netflix consumers who share their Netflix password.
The Netflix target market is very broad, ranging across all age groups and socio-economic levels. Netflix aims to appeal to a wide range of psychographic segmentations, reflected in the broad content streamed on the platform, from kids entertainment, to documentaries, rom coms, action movies and comedy.
The Covid lockdowns spurred a surge in Netflix consumption, with Netflix accounting for the largest share in streaming minutes in the US (34%). The Netflix audience tends to skew liberal politically, with just 34% of Netflix users saying they identify as conservative.
Although Apple TV+ is a newer competitor with a far smaller streaming library, it is slowly but surely building a loyal subscriber base. It offers very high quality and targeted niche content, and of course, it has all the strength of the iconic Apple brand behind it. Learn more on Apple Target Market Analysis on our recent blog post.
Another key Netflix branding strategy is the in-house production of original and high-quality content. This cements the Netflix brand as not just a streaming platform but a production company that rivals even the biggest names in movie making and TV production.
In 2021, Netflix was forecast to spend over $17 billion in content production. Furthermore, Netflix content is curated and localized for different markets to optimize engagement. Slovakia is the country with the largest Netflix content library, boasting over 7400 titles. In contrast, the US comes in at number 20 with over 5800 titles available to subscribers.
Netflix brand analysis also reveals a unique and creative marketing approach for the promotion of specific shows and content. For example, during the 2016 US election season, Netflix ran a very successful marketing campaign for political drama series House of Cards.
The largest age demographic by far is Gen Z and Millennials, who together make up close to 80% of the Netflix audience. Specifically according to data of mobile phone users, there are more males than females who like to stream Netflix, with a strong preference for Android over iOS.
The Disney Entertainment Streamers segment in the US is smaller still, with just over 2.6 million mobile users. Not surprisingly, the Disney streamers mobile audience skews young, with over 80% of the audience aged under 34 years.
These kinds of data points are vital in creating accurate and powerful ad campaigns for mobile audiences worldwide, across a wide range of consumer segments. For Netflix streamers, Amazon Prime subscribers, or hundreds of other audiences and segments, with the help of Start.io Audience data, businesses can access all the relevant insights for better targeting and better campaigns that deliver results.
Netflix was founded in 1997, offering online movie rentals with less than 1000 titles. Soon, it switched to the subscriber-based model, and in 2000 Netflix introduced a personalized movie recommendation system. By 2005 Netflix had over 4.2 million subscribers and started work on a video recommendation algorithm. And finally, in 2007, Netflix began its streaming services and original content creation. By 2016 Netflix had over 50 million subscribers; the story continues today as it is a worldwide presence in the video-on-demand industry.
However, most of the audience are teenagers, college-goers, entrepreneurs, working professionals, etc. Netflix aggressively works on content expansion and personalization to expand the user base. They separate the kids' and adults' audiences based on their maturity levels.
Netflix is a fantastic example of an integrating marketing strategy. It is integrated, agile, and customer-driven to make the maximum impact. Netflix follows a customer-centric model to deliver a seamless experience. The platform follows integrated marketing for effective targeting and makes the best use of content marketing for data analytics.
Netflix uses data-driven and customer-centric marketing strategies that work in the digital age. Netflix's success relies on constant analysis and optimization, so you can use these tools for marketing your business online.
Netflix's marketing strategy is a surefire example of innovation and modern-day technology growth. The platform has been eager to bring the changes per market need or user demand. The evolution of the marketing tactics from time to time is one of the core reasons behind its success.
Netflix proves that a brand can connect with customers easily through regular analysis and optimization. Simply put, Netflix's advertising strategy is full of agility, data-collection, user-centricity, personalization, and dedication. Major and minor brands can follow such a strategy and boost brand exposure and market value.
Netflix is an excellent example of how personalized content can improve user satisfaction. Netflix knows what TV shows and movies its users like to watch. It uses this information to create customized recommendations for them. This allows them to find the content they enjoy without searching through many lists. It also ensures that users are always getting the latest and greatest content. This level of personalization is critical for online users because it enhances their experience and makes them more likely to return to a site in the future.
Starting with a DVD service, Netflix's journey has been successful because of its multi-device strategy. You can open Netflix on TV, computer, smartphone, and tablet with seamless content continuity being watched. The company shows zero restriction in meeting the customers wherever required. Netflix follows both online and offline promotion strategies to boost user engagement. Be it any medium; their marketing strategy remains aligned wherever it can work.
You wouldn't find two Netflix accounts with the same interface or suggestions. The recommendation shows order is as per user activity and ever-changing. They change the artwork frequently to add a sense of newness. Netflix puts modern-day technology to good use. The platform keeps on having new features to gain maximum engagement. Machine learning is a proven technology trend to transform marketing research to the next level. The blend of ML into advertising is what helps Netflix Marketing Strategy.
Netflix has used the best content marketing strategy in the last decade. The company thinks of an out-of-the-box way to grab quick attention from users. They are bringing standalone products and unmatched experiences. On top of everything, the platform has a seamless communication channel to boost momentary awareness and recognition. The platform allows the audience to be involved in the story and make decisions. This unpredictable move is a proven game-changer for revolutionizing future television. The incomparable buzz in the platform keeps the user stuck to binge-watching. The users feel high engagement in the hopes of finding a happy ending.
Hence, Netflix happens to be a unique example and inspiration for many fellow companies. They have done a commendable job in content, branding, business model, and product. Netflix marketing strategy has a lot to offer to market enthusiasts and students.
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In the high-octane world of streaming services, standing out amidst a sea of competitors requires more than just star-studded content and innovative technology. A fine-tuned marketing strategy is pivotal for a successful breakthrough. A befitting illustration of such marketing finesse is none other than Netflix, a global titan of the industry. Let's delve into Netflix's game-changing segmentation, targeting, and positioning strategy that has helped it sustain its cutting-edge relevance and appeal.
Visualising marketing strategies can enhance comprehension significantly. A detailed mind map can aid in understanding how Netflix has intricately structured its segmentation, targeting, and positioning approach. It will illustrate how Netflix segregates its market segments, targets its potential consumers, and aligns its unique value proposition to gain an upper hand in this fiercely competitive industry.
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