Hulu Sells Advertising Based on Traditional TV Measurements

April 03, 2013
Micah Kruckenberg

If you’ve ever missed an episode of your favorite show or wanted to catch up on previous seasons of a show everyone is talking about, you may have visited to get your media fix.

Co-owned by Fox, NBC and ABC, Hulu is an online ad-supported video service that offers on-demand streaming of premium TV shows, movies and original programming.  Hulu currently offers videos from 450 content partners including The CW, Univision and CBS. Additionally, Hulu has over 1,100 advertising partners. Although you might think of Hulu’s audience as mostly teenagers, the average age of a Hulu viewer is actually 38. Personally, some of my favorite shows offered on Hulu are Modern Family, Project Runway and Downton Abbey.

In an effort to blur the lines between buying advertising on broadcast TV and online, Hulu has converted their local online video impressions to Gross Rating Points using a formula based on Nielsen data. The goal of this GRP conversion formula is to offer meaningful local ratings and increased value to advertisers similar to broadcast TV. It also puts them in a position to be thought of from either an online or TV budget standpoint.

By limiting the length of commercial breaks and offering on-demand content, online video streaming services are quickly gaining popularity. Hulu’s GRP conversion formula has made local advertising easier to measure, which will result in increased campaign effectiveness. Successful campaigns result in loyal advertisers, making Hulu’s strategy a win-win.

Have you noticed any new advertising trends from online video streaming providers? Do tell!

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