What Netflix wants advertisers to know about how Gen Z is watching

Netflix is pulling the curtain back on the viewing habits of its Gen Z and millennial users across the 12 regions where its ad-supported plan is available.

The day after Netflix reported third-quarter earnings, Netflix Ads published the “Still Watching” report, which highlights “why and how Gen Z and Millennial audiences stream today — and what it all means for advertisers.”

The report considered, in part, three separate surveys of 9,000 viewers aged 18 to 42, as well as first-party Netflix data.

In its Oct. 21 earnings letter released, Netflix said it’s on track to more than double its ads revenue in 2025 compared to last year. The streamer also noted its use of AI to test new ad formats, create faster media plans and more.

With the new report, Netflix argues that its ad offering can break through a crowded media ecosystem, noting that “61% of Gen Zs and Millennials say that ads on streaming services stand out more than the same ads they see elsewhere.”

It also claimed that Gen Z and millennial viewers are three times more likely to search Netflix for something new to watch, versus its closest competitor.

In a blog post published on Oct. 22, Netflix highlighted four key insights from the report for advertisers to know:

Audiences “are more interested in different types of content than ever before.”

Netflix said advertisers “should cater to audiences’ desire for discovery” by sponsoring international titles or targeting based on interests. It cited KPop Demon Hunters, which became its most-watched movie of all time this year.

Streaming is “magnifying fan communities,” spreading fandom worldwide.

Seventy-one percent of Gen Z respondents said their fandom is an important part of their identity, and 66% of millennials agreed. Moreover, 70% of respondents said they’re “more likely to buy from brands aligned with their favorite fandoms.”

For Gen Z and millennial viewers, “personalized recommendations are a major part” of the streaming experience.

The report found that 80% of users watch content based on recommendations. Among Gen Z respondents, eight out of ten said their favorite content “help[s] them understand and accept themselves on a deeper level.”

To that end, Netflix stressed that advertisers will be able to personalize ads with GenAI starting in 2026. Seventy percent of respondents said that they notice ads featuring products from content they’re watching.

Users “devote quality time” to streaming.

The report found that attention levels on Netflix peak at around three hours of viewing, whereas they dip on YouTube and other ad-supported streaming platforms.

Further, 52% of respondents said that they pay more attention to ads on their favorite streamer compared to other places. The report also claimed that the biggest titles on Netflix “average 20% higher attention levels than CTV norms in the U.S.”

In conclusion…

The report concluded that audiences “crave variety that reflects their diverse tastes, experiences that unlock conversation and community, and stories that resonate with who they are — and who they are becoming.”

“For advertisers, understanding the attitudes and behaviors of streaming audiences will enable them to craft more memorable moments for their brands and drive real results,” the report said.