Over the past week, advertising in the UK and Spain has witnessed noteworthy shifts shaped by regulatory scrutiny and the accelerating embrace of ad-supported streaming models.
EU sanctions reshape ad-tech accountability
The European Commission has levied a €2.95 billion fine on Google for manipulating its ad-tech platforms, specifically favouring its own offerings in ways deemed anti-competitive. The ruling mandates Google to end such self-preferencing and may include structural remedies if viable alternatives are not proposed quickly. This development marks a significant recalibration in how digital ad markets operate across Europe.
Netflix’s ad-supported tier continues its strong ascent
Data from Digital i indicates that Netflix’s “Standard with Ads” tier saw a robust 32 per cent increase in viewing hours across five key Western European markets, spanning the UK, Spain, Germany, France, and Italy, between November 2024 and April 2025. Notably, Spain and the UK posted 34 per cent increases, with hours rising from 59.9 million to 80.2 million in Spain and from 150.7 million to 202.6 million in the UK.
Netflix has reinforced this push by narrowing pricing gaps between its ad-free and ad-supported tiers across Europe, making ad-based plans more attractive with upgrades in video quality and functionality. In the UK, Netflix has also made a key hire: Ed Couchman will lead its UK advertising sales team, underpinning the company’s ambition to double ad revenue again in 2025.
The strategy appears to be paying off. Netflix’s Q2 2025 earnings report reflects $11.08 billion revenue, up 16 per cent year on year, with streaming reaching 95 billion hours and over 94 million ad-supported users. Advertising revenue is being driven by Netflix’s in-house ad-tech and tools such as interactive ad formats.
Implications and outlook
These trends signal rapid maturation of ad-supported streaming in both markets, particularly as consumers shift toward lower-cost viewing options without substantially reducing engagement. The combination of rising regulatory oversight, as seen in Google’s fine, and aggressive monetisation strategies from digital streamers like Netflix is reshaping advertiser strategies and media planning in general. The challenge for UK and Spanish broadcasters will be to defend audience share, even as streaming giants extend their ad reach.
