Why Start Advertising on Hulu in 2023: An Agency’s Guide to Get Started
By now, you are probably very familiar with streaming TV. These services have revolutionized the way we consume content. In the past, viewers were limited to watching TV shows and movies as they aired, or recording them on a DVR (or dare I say, VCR!) for later viewing. With OTT platforms, however, viewers can watch content whenever and wherever they want.
OTT stands for “over-the-top” and refers to video content that is delivered over the internet, rather than through traditional cable or satellite TV providers. OTT services have become increasingly popular in recent years, thanks in large part to the rise of streaming platforms like Netflix, Hulu, and Disney+. The release of many different platforms along with the reduction in price of smart TVs and carry over from Covid-19 which allowed people to watch more TV at home when they were limited to outdoor activities, the numbers have seen an increase each quarter over the last several years and is expected to continue as even more streaming options roll out. These platforms offer a wide range of movies, TV shows, and original content, all available for on-demand viewing at any time.
It’s reported that 72% of OTT consumers are doing so on ad-supported platforms, which allow advertising messages. In order to reach these viewers, one of the bigger players in the game, Hulu, has come out with a self-serving platform that would allow all businesses to reach their prospective consumers. It’s estimated that Hulu has 82 million viewers, with over 50 million using the ad supported plan which allows them to consume content at a lower price by showing ads. Hulu has a way to reach this highly engaged audience. Hulu is also part of a larger family, which includes Disney + and ESPN+
One of the main advantages of OTT services is their flexibility. Unlike traditional TV providers, which require a contract and a set package of channels, OTT services allow users to pick and choose which shows and movies they want to watch. By advertising on Hulu, you can target individuals you want based on their consumer profile, geographic area and other behavioral tactics. Bottom line, you don’t care WHAT they are watching or WHEN they are watching. You are targeting that one specific person (or group of people)
When it comes to advertising, Hulu’s pricing model works on a CPM basis. This is the amount paid for every 1,000 viewers. The cost is typically much lower than advertising on traditional tv and cable. This low cost allows businesses of all size, even local businesses, to take part in exposing their message to the Hulu streaming audience and a fraction of the cost. Hulu campaigns typically start at $500 a month.
Hulu also provides a dashboard where you can gain valuable insights. You’ll receive a report of everywhere your ads ran, so you can see what your customers are watching, how they are watching, and when they are watching. This info may help with any future cross- advertising campaigns you may set up. So for example, if you are a local restaurant and your dashboard shows that a large portion of your Hulu viewing audience are watching shows about cars, you may want to partner with a local car dealership since there may be some crossover.
While Hulu may be the leader in the OTT space when it comes to advertising, others are sure to follow. With more mergers, platforms, service, original content and availability to access to internet, other media companies will set (or have started setting) up similar platforms to Hulu’s advertising platforms. In all, this competition will be good for advertisers as CPMs are sure to be lowered even further.
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