Netflix is in the process of increasing its marketing budget by 50%, to a whopping $2 billion. MediaPost reports that the company announced plans during its fourth-quarter earnings call to expand the budget dramatically from the $1.3 billion spent on marketing in 2017.
In its letter to shareholders, Netflix said: “We’re taking marketing spend up a little faster than revenue for this year … because our testing results indicate this is wise. We want great content, and we want the budget to make the hits we have really big, to drive our membership growth.”
The report notes that TV remains a tiny part of the company’s marketing revenues.
“In 2017, iSpot.tv says Netflix spent $46.3 million on national TV advertising, with the major broadcast networks getting the bulk of the spend: CBS at $10.8 million; Fox at $9.0 million; NBC at $8.6 million; ABC at $7.2 million, and ESPN at $4.7 million,” MediaPost reports.