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Hulu ads surged to $1.5b

Hulu, an Internet-based VoD founded by NBC Universal, is leveraging binge-watchers to increase advertisement revenues.

Pegging the ads to binge-watchers’ sessions allows marketers ways to sponsor a thematical ads that relate to the shows being viewed.

Noah Mallin, head of content, experience and partnerships at Wavemaker, said: “It’s a smart way to recognise viewing behaviour on streaming platforms. It gives advertisers a way to increase prominence with bingers while creating a better experience.”

Hulu intends to recalibrate 50% of its ads format to be “non-intrusive” within the next three years; it has also capped the length of ad breaks to 90 seconds.

Azher Ahmed, director of digital ads from DDB US, said: “Instead of blasting the same creatives at binge-watchers, ads tailored to them lead to new series of campaigns during breaks.”

The influx of subscribers hitting 25 million last year resulted in more commercial inventory. Hence, Hulu’s ad revenue is surging by 50% to US$1.5 billion.

On the flip side, national TV advertising revenue was flat in the previous year. One of the contributing factors is due to the outdated practice of buying commercial time based on ratings from the previous year.

In recent years, more and more consumers have consumed advertisements on mobile than on TV. Thus, advertisers have also re-directed marketing spends on digital advertising. Magna, a media agency, predicted that mobile digital advertising will grow by 30% this year to US$70 billion – surpassing TV and desktop-based revenues.

 

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