In recent weeks, online TV streaming service Hulu has been snatching up shows and giving Netflix a run for its money. It’s an interesting development that could have significant implications for advertisers and the future of TV on the Internet writ large.
It’s not just the price that Hulu is willing to pay for shows that has traditional broadcasters giving the service a serious look. Unlike Netflix, Hulu has engaging advertising opportunities that are the more attractive to clients as more people move from standard cable subscriptions to online viewing alternatives.
And similar to what Pandora has found with online music services, online viewing is actually opening up new targeting capabilities that are more in line with digital advertising that is based on interests, demographics, and geography. Such features benefit both the viewers (with advertising for products and services they are more likely to be interested in) and the advertiser (with more effective budget management by hitting the target audience more comprehensively).
This capability is also helping Hulu leverage the fact that cable companies are finding viewers less and less willing to spend their subscription dollars on packages that include channels of no interest to them. Naturally, advertisers will flock to more targeted opportunities that demonstrate better reach and resonance with their core audiences.
As advertising space becomes more competitive and viewers become more discerning, look for advertisers to start taking advantage of these new opportunities and alternatives as they emerge.
Erin Flior is a Vice President at LEVICK and a key member of the firm’s Digital Communications Practice.
