The race to sign up subscribers in the streaming wars is a test of marketing prowess as much as it is of programming strength. That’s what makes Netflix’s performance last year so impressive: The streaming giant added subscribers even as it cut spending on advertising and as a slew of older entertainment companies launched competing offerings with big bursts of marketing.
A recent securities filing by Netflix revealed that the company slashed spending on advertising to $1.45 billion from $1.88 billion globally in 2020. New data from two research firms provides a glimpse of where Netflix made cuts. For example, the streaming giant cut its U.S. ad spending on Facebook by more than half last year, to $21.6 million from $48 million, according to Pathmatics.