Hulu’s Rumored IPO Still Trusted Site for Online Video Ads

While YouTube’s audience spends the most time online watching videos, Hulu comes in second and is the preferred site for online video advertisers.

Brand advertisers ran 783 million streaming online video ads with Hulu viewers watching 27.9 ads in July (2010), compared with YouTube’s 219 million video ads with 4.6 ads per user, according to an emarketer study for online video properties describing the potential $2 billion IPO.

Since Hulu sources its video content from broadcast TV shows with using digital content delivery, marketers trust placing online video ads here.  Advertisers worry about whether video content is suitable for their brand or not, giving Hulu owners the fear of offering too many free videos, threatening viewers to “cord-cut” their traditional TV subscription.  If subscribers leave their cable provider, Hulu’s mobile video ad usefulness for advertisers can be affected.

A New York Times/CBS News poll found that 15 percent of adults 45 years and older, would replace their cable TV subscription with Hulu or YouTube, however viewers younger than 45-years old are more likely to make the switch.

Vizu suggests replacing click through rates (CTR) with Brand Lift, crossing Facebook ad polls with Nielsen’s expert data and reporting suite for ROI online video campaigns, but you have to be a Nielsen customer to use it.

Time Warner Cable has not adopted the TV everywhere concept, but instead has opted for focusing on developing an iPad app for paying subscribers to access their video-on-demand library, that favors the content’s source to be trusted, and that content is more suitable for online advertisers.

The digital delivery in a “wherever TV” media world has created a variety of mobile video advertising opportunities.

Hulu remains the preferred online video advertising site since content is distributed from traditional media sources.  YouTube video content is largely sourced from its users, and nearly 144 million people watch online videos in the US alone, largely an untapped advertising market.  You can create your own YouTube brand channel and provide your own advertising content.

ABOUT:  Hulu LLC is owned by General Electric’s NBC Universal, News Corp. and Walt Disney Co, along with private equity firm Providence Equity Partners and currently provides free online TV shows, concerts, and movies.

RELATED BLOG

Improve Mobile Video Advertising with Your Face“. Capstone Media. August 10, 2010.

FURTHER READING

What Will Hulu’s IPO Mean for Advertisers?” David Hallerman, eMarketer.  August 24, 2010.

In the Living Room, Hooked on Pay TV”.  Matt Richtel and Brian Stelter, New York Times Media & Advertising.  August 23, 2010.

Americans Are Dumping Cable TV, but Execs Say Economics to Blame”. Andrew Hampp, Adage.  August 24, 2010.

Looking at Lift: Inside Online Video Advertising”. Nielsen Wire. April 19, 2010.

WATCH Wall Street Journal’s Digits Hulu IPO with Simon Constable