TakeAway: Hulu is challenging online advertising pricing by only charging for fully viewed ads.
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Excerpt from AdAge: “Hulu’s New Guarantee: Someone Watched Your (Whole) Ad”
Advertisers are generally charged when a beacon is fired as an ad begins playing. But Hulu is moving that notification to the end, meaning that and ad that isn’t completed won’t count.
“If you pay for a full impression, you will get an impression, full stop.”
The company said its completion rate for ads is 96% — extraordinarily high for online video, where the average completion rate is closer to 88% for long-form content and 54% for short clips.
“Vendors with greater video completion rates [see] greater brand lift and greater message recall.”
Though the move will cost Hulu some volume, the company’s idea is that it will be made up in higher rates resulting from competition for fewer available spots.
It also means advertisers get some partial impressions free, as a number of viewers will be exposed to a portion of the ad before they click away.
Edited by ARK