Is Netflix the world’s biggest single product advertiser?

When you think of the world’s biggest advertising spenders, what comes to mind? Coca-Cola’s “holidays are coming” campaigns? Apple‘s sleek product launches? McDonald’s billboards? 

Here’s a revelation that might surprise you: one of the world’s biggest marketing budgets isn’t allocated to selling cars, smartphones, or consumer goods, it’s selling monthly access to TV shows and movies. 

Netflix had a staggering $2.9 billion marketing spend in 2024 (including $1.7 billion in pure advertising), hidden among the noise that always surrounds Netflix revenues and subscriber numbers, it has quietly created a world leading marketing machine.

The world’s biggest marketing companies 

Maybe this figure doesn’t sound remarkable, but here’s why it is: while other tech giants like Amazon, Apple, Google, and Microsoft spend heavily on advertising, their budgets are allocated across dozens of products and services.   

The same is true in other industries like FMCG/CPG – giants like Proctor & Gamble, Unilever and Coca-Cola are spending billions in marketing and advertising, but across hundreds of product lines.  

With Netflix, that huge marketing spend is allocated to a single product. 

The economics behind the spending spree

Why are subscription companies willing to spend at such vast magnitude? The math is compelling. Unlike traditional products sold once, subscriptions generate recurring revenue that can justify massive upfront acquisition costs. When Netflix spends to acquire a customer, unlike selling a can of Coke or box of cereal – they’re not just achieving a single transaction – they’re potentially securing years of monthly payments.

This economic model has transformed companies across industries into marketing powerhouses. Spotify, another single product subscription business like Netflix, reportedly invests around $1.5 billion annually in marketing. 

Even beyond entertainment, subscription-first companies in software, fitness, news, and countless other sectors are following suit, recognizing that in the subscription economy, growth depends on your ability to find and win new customers.

And Big Tech are not asleep at the wheel either, Amazon, Apple, Alphabet and Microsoft all have significant subscription products, offering services across popular categories, such as streamed video, music and gaming. 

The Gravity Shift: Beyond traditional advertising

But here’s where the story gets interesting and where the industry is experiencing a significant change in where and how they spend their marketing dollars.  

Netflix’s own annual report reveals a telling insight about their marketing strategy:

“Sales and marketing expenses consist primarily of advertising expenses and certain payments made to marketing and advertising sales partners, including consumer electronics manufacturers, multichannel video programming distributors, mobile operators, and ISPs.”

This isn’t just about buying more Facebook ads or TV commercials. The most sophisticated subscription businesses are diversifying beyond traditional advertising into channel marketing, strategic partnerships, and bundling arrangements. They’re recognizing that acquisition through third-party channels and bundled offerings may be the key to sustainable, cost-effective growth.

This change, we’ve looked into, in our new report – Gravity Shift. 

What 201 subscription executives revealed

To understand exactly how this shift is reshaping customer acquisition strategies, we surveyed 201 senior executives from subscription businesses across industries. The results, compiled in our new Gravity Shift report, reveal fascinating insights about how the world’s most marketing-intensive businesses are evolving their approach to growth.

The findings challenge conventional wisdom about digital marketing and reveal why the companies spending the most on customer acquisition are quietly pivoting their strategies. From bundling partnerships that reduce acquisition costs to channel relationships that provide sustainable growth, the subscription economy’s marketing leaders are writing a new playbook.

The new rules of subscription growth

The subscription economy has already reshaped how we consume everything from entertainment to software to groceries. Now, it’s reshaping how businesses think about marketing and customer acquisition. As Netflix and its peers continue to invest billions in finding new subscribers, they’re not just changing their own industries – they’re pioneering acquisition strategies that will define the next era of business growth.

The question isn’t whether subscription businesses will continue to dominate marketing spend – it’s how they’ll evolve their strategies to acquire customers more efficiently in an increasingly competitive landscape.