Why Hulu is Leading in Ad Impressions

Despite the fact that YouTube is the granddaddy of all things online video, Hulu’s ad impression rates are much better than YouTube’s, and every other web property in the industry.

It’s not just that Hulu has more ads in play or that it has more premium content than other networks, it’s the way Hulu envisions consumer targeting that is a primary driver of its success. Hulu uses ad personalization and full-screen takeovers effectively to get its 27 million subscribers clicking on the 1.2 billion ads served to them. Hulu users have to click and choose an “ad experience” from an in-player popup in order to watch a program.

Embedding a call-to-action in a display ad is common, but tying it to a mandatory choice according to a visually based affinity is not. The coercive nature of having to watch an ad is mitigated by a user being able to choose from several screenshots what they want to watch.
Hulu’s vision of consumer targeting allows users to create the audience segments that they want to be placed in to be served ads. It takes much of the guess work out of pre-roll or display advertising. Because Hulu ads are very short — typically 15 seconds — it is highly unlikely that consumers typical ad avoidance would occur.
Hulu last year doubled its ad revenue to $240 million, and is expected to grow at a faster rate this year. Hulu’s business model may be up for debate, but its employment of user-choice is an object lesson for brands seeking to optimize their ad spending.
https://digiday.com/?p=5707

More in Media

A measuring tape slightly open with eyes on the measure. Representing measurement for omnichannel strategies.

Why LinkedIn is spotlighting the average watch time metric to support its video push

The company believes more creators will make the jump to LinkedIn for the opportunity to be in front of marketers, investors and other business decision-makers.

How publishers pull YouTube viewers to shop on their sites, with Architectural Digest’s Amy Astley

The Condé Nast-owned publication has recorded a four-times increase in revenue for its “Open Door” series and is planning a relaunch of its AD Shopping property, Astley said on the Digiday Podcast.

AI Briefing: DeepSeek’s emergence from nowhere shows open-source is eating the world

After recent AI developments, ad tech execs ponder the prospect of Big Tech loosening their stranglehold on the industry.