Industry News: Hulu

Here’s a quick vocabulary lesson…

Cord Cutters: People metaphorically cutting the cord (and cost) of cable subscriptions in favor of VODs/VSODs.

VODs/VSODs: Videos on demand or video subscriptions on demand. More commonly known as Netflix, Amazon Prime and Hulu.

We know what you’re thinking. “What does this mean for traditional TV?” and “Is cable dead?” or even “I thought all traditional media was dead.”

In short, no–cable certainly isn’t dead. Nor is broadcast TV. Media buyers just need to be increasingly strategic in the way they purchase these media. Attention needs to be paid to each unique market’s penetration rates because every market is different. There are some markets where cable remains the most affordable or only feasible way to reach our audience. Because budget matters. And neighboring stores do too. That’s why Hulu can be a great thing for you.

Why Hulu? Because Hulu is in a class by itself. Other VODs/VSODs do not accept advertising dollars. To date, Hulu is the only option that’s a fit for our small business owners. And it’s worth a closer look if you want to run visual advertising. Not only does Hulu have over 7 million subscribers, but their audience skews 20 years younger than those watching traditional TV.

How does Hulu work? As an advertiser, your commercials are loaded into a “pod” (a commercial break of sorts). There are only 3 ads in each pod. For every 30 minute show there are 2-3 pods; for every 60 minute show there are 4-5 pods. Hulu targets the ads served via one’s zip code, viewing habits and IP address.

But I always skip the ads I’m served online. How is this different? Because with Hulu there is no fast forward/skip feature. Due to the brevity of the pod, viewers are inclined to remain captive for the ads. And advertisers only pay for ads that are completed–any video impression not completed in full is free.

Ugh! First Pandora, now Hulu… What’s next?! Hey–we feel ya! It’s not that media consumption is down–in fact, it’s just the opposite! People are consuming more media than ever. The unfortunate part is that with more ways for media consumers to receive content, advertisers feel pressured to be in more places all at once. But even national budgets can’t afford to do it all. That’s why you need a buyer who is deliberate and thoughtful about your ad placement. A buyer who ensures that whatever you endeavor to do, you do it well and purposefully. A buyer like J Miller Marketing.

Any questions we haven’t answered? Here are some additional resources…

Share your thoughts

No Comments

Leave a Comment: