‘Emotive marketing’ responsible for revenue boost, says Netflix

Industry News By Rhys Little, 23rd April 2014

Netflix has chosen to move away from direct marketing, and head towards a more emotive and content-led marketing for it’s first quarter of the year, which has successfully boosted its revenue stream.

Emotive marketing is the practise of building brands that appeal directly to a consumers needs, aspirations and emotional state.  The idea is to generate an emotional response that makes the audience ‘feel’ something, but also play on their emotions. Netflix CEO Reed Hastings said: “Our advertising strategy has been evolving towards more emotive and brand and content and away from direct response, as we realised through testing that we don’t need to be running around saying ‘Netflix Free Trial’ as much”

As a result, Netflix have been able to gain a bigger market share and a better connection with their members which they accredit to the success of the new marketing strategy.

The company has praised emotive marketing for the revenue hike, which was generated by its 48 million subscribers for the three months up till the end of March. Leading to revenue growth of 24 per cent this year to $1.27bn.

Marketing expenses in the quarter increased 15 per cent to $137m, with the main activity focusing on launching the second series of US political drama House of Cards and other brand marketing campaigns.  Netflix has stated that it will continue with this strategy for the second quarter with a “significant push” behind a global launch of a second series of Orange is the New Black in June.  It also plans to raise prices for new users which will invest back into content.