Media

Why Hulu is Leading in Ad Impressions

April 13, 2011 | By Carla Rover

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

Digiday Top Stories

Content & Commerce
Media Briefing: Publishers prepare for an earlier holiday shopping season
Gallery Media Group and Future are reworking their affiliate commerce content strategies this month to cover retailer's shopping events.
Holiday Marketing
Massive political advertising clashes with holiday media buying, creating a ‘tsunami’ effect for Q4
This year, the fourth-quarter ad marketplace feels quite different, and for a number of reasons, some for the better and some not.
Agency Culture
4A’s Marla Kaplowitz on 3 ways agencies can navigate the uncertain economy
The industry trade group is helping many agency members prepare their business for broader economic changes, from how to retain talent to honing their financial acumen.
Sponsored
How marketers are tailoring data-driven creative to engage audiences on CTV
Gabriela Maestre, vice president of creative solutions, Tremor International As the end of the year approaches and marketing teams look to finalize their 2023 budgets, many are wondering how to ensure their ads are set up for success in the months ahead, appealing to unique audiences whose media consumption habits continue to evolve. Advances in […]
Content & Commerce
How sportsbooks and publishers are rethinking the terms of content-based sponsorships
The economic slowdown is causing sportsbooks and publishers alike to reconsider their approaches to content-based customer acquisition campaigns.
Going Global
A year after coming under Axel Springer’s control, Politico’s Europe and North American businesses are closer than ever
Politico is still realizing what a global brand might look like, but Politico EU's CRO Nicolas Sennegon is already pursuing an advertising business that extends across the pond.