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What It Is & How it Works

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What It Is & How it Works

For evidence of the rise in streaming TV usage in recent years, most of us have to look no further than our own television sets. Linear TV (i.e. cable and broadcast) viewership and advertising has been on a steady and continuing decline, leaving many advertisers looking for alternative solutions to reach the large audience that commercials on traditional television have historically offered. In fact, this year, it’s expected that cord-cutters will officially outnumber cord-nevers, who have never used a traditional cable TV or satellite service.

“This market has grown by double digits each year since we began tracking it in 2017, and it will continue to do so through the end of our forecast period in 2026.”eMarketer

 

Source: https://chart-na1.emarketer.com/259798/us-connected-tv-ctv-ad-spending-share-by-company-2020-2024-of-total-ctv-ad-spending

But this new territory comes with its own set of major players, definitions, methods and manners of streaming content, and ad inventory and buying options. For those new to the streaming advertising landscape, it can seem like an entirely new path for which they have no directions.

Streaming landscape infographic

In this post, we’ll work to take some of the confusion out of streaming ads by breaking down one of the most popular marketing avenues—Connected TV advertising.
 

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What is Connected TV (CTV) Advertising?

 
chart showing US CTV ad spending in billions and as a percentage of total digital ad spending from 2022-2026

Source: https://forecasts-na1.emarketer.com/584b26021403070290f93a3a/5d9671494945300bf4895bf9

Connected TV advertising includes digital ads shown to viewers who are watching streaming video content on an internet-connected television, including Smart TVs. Ads are displayed before, during/alongside, or after the television shows, movies, or livestreams being watched. Popular CTV ad types include display banners, traditional commercial-style placements, pop-up ads, and interactive ads that allow viewers to take direct action, often by using their phone camera or remote control.

Some recent stats that highlight the incredible growth and opportunity already underway for CTV advertising, which is expected to continually climb for many years to come, include…

  • Nearly 68% of the US population (230 million people) uses a connected TV (Source)
  •  

  • Annual CTV ad spend in the US is expected to reach $43B in 2026 (Source)
  •  

  • eMarketer forecasts that connected devices will account for 39.2% of time spent with YouTube by 2024 (Source)

“In the US, CTV is the fastest-growing ad format we track, with a projected growth of 27.2% in 2023, for a total of $26.92 billion. By contrast, we project US retail media ad spend to increase by 20.5% and US social network ad spend to grow by 8.8% in the next year.”eMarketer

 

CTV Advertising vs. OTT

‘Connected TV advertising’ and ‘OTT advertising’ are often used interchangeably, but there are practical differences between the two that relate most directly to the device on which the content is being consumed.

As their name implies, Connected TVs are able to deliver streaming content thanks to their “connection” to the internet. This connection is often built-in to the television, as is the case with Smart TVs, but a connection can also be facilitated through the use of after-market internet-capable devices, including the Amazon Fire TV Stick, Roku devices, gaming consoles, and Apple TVs.

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While not all streaming content is viewed or listened to through a Connected TV, all CTVs deliver streaming video content. Looking at advertising specifically, CTV advertising would be viewed by prospective customers through apps they were accessing via their television screen. For example, while watching YouTube or streaming Twitch content on a Connected TV, viewers may be shown display banner advertising. That type of advertising is considered Connected TV advertising, but it is not OTT. OTT typically implies content streamed by a “network” like Hulu, NBC, or Pluto.

OTT is an acronym for “over-the-top,” and refers to streaming content that is “delivered over” (not through) a cable box. Unlike CTV advertising, which is exclusively shown on televisions, OTT advertising can be delivered on TVs, personal computers, tablets, mobile phones and more.
 

CTV Advertising vs. Addressable TV

Addressable TV provides advertisers with 1:1 targeting in a traditional TV environment, enabling them to segment and deliver ads to selected, internet-connected linear TV and OTT/CTV audiences (households), thereby ‘addressing’ the audiences they want to reach through their ads. This level of targeting is accomplished by matching an advertiser’s first or third-party dataset to a cable TV provider’s dataset in a privacy-safe way.

The audience segments you’re able to target through Addressable TV advertising can be built on a number of factors, including specific demographics a viewer falls within, and their geographic location. Have you noticed you get different ads than your friends when you’re watching the same program? Addressable TV advertising is likely at play, serving up better-targeted-to-you-specifically ads, rather than traditional TV ads, where all viewers of the same program (and in the same region) are shown the same commercials.
 

CTV Advertising vs. Linear TV

Linear TV is what most of us think of as traditional TV, with cable or satellite programming and adjacent advertisements running on a largely predetermined schedule. Today, linear TV typically reaches a much older demographic than streaming TV.

While linear TV watching is on the decline, there are still a very high number of subscribers. Advertising on linear can be incredibly impactful when leveraged in complement with CTV advertising. Targeting is available in the linear space, though it is often less granular than in streaming. Linear TV can be bought on a guaranteed demographic basis—i.e. a network can guarantee your ad will run to a certain audience (gender, HHI, etc)—with Addressable TV being a version of this.

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Linear TV advertising can be beneficial for brands with an older customer base and very wide appeal, who want to reach the most varied group of potential consumers as possible—and it might be more affordable than you’d expect. Non-guaranteed linear CPMs (cost per thousand impressions) are actually often lower than streaming CPMs.
 

Benefits of Connected TV Advertising

 
chart showing how many millions of connected TV households there are projected to be from 2023-2027

Source: https://forecasts-na1.emarketer.com/584b26021403070290f93a3a/5851918a0626310a2c1869b5

Key benefits of CTV advertising include…

Reach more customers: Not only are there 113 million CTV households in the US, but those households include a large number of people from all current adult-inclusive generations. Whether you want to reach Gen Z, Gen X, Millennials or Baby Boomers, you’ll reach them all by the tens of millions with CTV ads (Source)

chart showing breakdown of how many US CTV users are millennials, Gen Z, Gen X, and baby boomer viewers

Source: https://forecasts-na1.emarketer.com/584b26021403070290f93a3a/5f624727ce286916fc72277e

Automated Optimization and Media Buying: The use of programmatic is on the rise in CTV advertising, though it isn’t the only way to purchase ad space. Because most CTV ad inventory is “delivered against premium video content from broadcast TV, cable, and streaming studios,” there is often a heightened degree of brand safety. (Source)

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Precise Audience-Based Targeting: CTV ad options are continuing to expand—particularly programmatic inventory—with audience targeting capabilities that rival what social media networks and Paid Search provide (Source). Common targeting options include: age, location, gender, known interests, education or income level, and purchase history.

Real-time measurement: The great news with CTV advertising is that results are often deterministic and available in real-time, meaning you don’t have to wait weeks or months to adjust based on performance.
 

How Does CTV Advertising Work?

 
Investing in CTV ads can help you reach your desired audiences within the 113+ million streaming viewers across many popular apps and services, but how do you actually make those ads happen? Let’s dive into the steps…
 

Choose a platform

Whether you want to start small with one CTV platform, or design a fuller campaign that targets viewers across a variety of popular apps, there are an abundance of options to suit your goals and needs. Once you’ve selected a platform or platforms, explore all the available ad types offered by that provider. There are an expanding number of platforms to choose from, with some popular options including YouTube and Hulu. Once you understand the foundational capabilities of each, you can better design a campaign that leverages a mix of ad options and/or audiences.
 

Upload creative

Once you have all your creative polished and ready to help you reach your advertising goals, work with your agency partner to upload it to the platforms you’ve decided to advertise with.
 

Target an audience

The advanced targeting options CTV advertising offers are what draws many advertisers to this avenue, with the measurable results keeping them coming back. Consider the audiences you want to reach, and the actions you want them to take, in deciding who you’ll target with which creative and placements. Consider the audiences available within the platforms themselves, audiences you might want to reach based on your own first-party data, which KPIs you are interested in measuring, and whether measuring incrementality is important
 

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Choose campaign placements

Available placement options vary depending on the platform you’ll be advertising on. It’s important to consider when and where a given ad placement will be displayed so you can ensure appropriate messaging.

For example, if your ad will display when a viewer pauses their programming, you’ll want to make your ad eye-catching enough that they’ll read it before returning to their show. Making it interactive can also prove beneficial, such as incorporating a QR code for viewers to take further action.
 

Set budget and launch

You’ve likely already considered your budget in the previous steps as how much you’re willing to spend can greatly influence the platforms, placements, and breadth of audiences you want to reach. Once you’ve finalized your budget, you’re ready to send your ads off into the streaming universe! Note that this is a highly scalable channel, and can be used to both drive brand awareness and bottom funnel performance.
 

Optimize and refine based on results

Like all digital advertising campaigns, there is no set-it-and-forget-it approach. Once you’ve given your ads enough time to reach statistically significant results, carefully review what’s working best, and where there might be room for improvement. Consider the full scope of what can be influencing these results, including targeting and the creative itself.
 

Platforms & Devices for CTV Advertising

 
chart showing which CTV devices were most used by North American internet users in Q2 2022

Source: https://chart-na1.emarketer.com/259649/connected-tv-ctv-devices-currently-used-by-internet-users-north-america-q2-2022-of-respondents

CTV devices and platforms are already numerous, with options for platforms in particular most likely to continue to climb in the near future.

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CTV Devices are the physical products that facilitate watching streaming content. In the Connected TV space, that includes Smart TVs (internet-capable by design), and regular TVs that have been “made smart” through the use of an after-market, internet-capable device (Roku devices, gaming consoles, Apple TVs, Amazon Fire TV Sticks, and more.)

CTV Platforms are the apps and services that viewers will be watching when they see your CTV ads. Some popular, ad-supported platforms include:

  • Hulu
  • Facebook Watch
  • YouTube
  • Pluto TV
  • Peacock
  • Amazon Freevee

 

Examples of CTV Ad Types

 
While the available ad units can vary from platform to platform, there are certain ad types that are most common. Below, we dive into four popular and widely-offered CTV ad types…
 

Display ads

Display ads on CTV function similarly to the display ads we see elsewhere, including on our favorite websites and blogs. These ads appear above, below or alongside the content being viewed, helping increase and improve brand awareness.

eMarketer estimates that “CTV will account for 16.5% of all US display ad spend” in 2023.
 

In-stream Video ads

In-stream video ads are served to customers once they’ve begun a streaming session. These ads can be shown before, during, or after they’ve viewed their selected content. In-stream video ads are most similar to what most of us consider traditional television commercials.

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Instream ads are the most common ad type shown “on platforms like YouTube,” and are also commonly referred to as pre-roll, mid-roll, and post-roll video advertisements.
 

Interactive ads

Interactive ads are a newer ad type that viewers can interact with in some way when they are displayed, with a few different interactive options. These might include scanning a QR code shown on the screen to be taken to a website, or sent more information via email. Some interactive ads even enable viewers to make a purchase, or add an advertised item to their cart, directly from the ad.
 

Pop-up ads

CTV pop-up ads include those that display beneath the content being viewed, or when a streaming viewer has paused their programming. These ad types don’t require that users interact with them in any way, helping boost brand awareness without interrupting their streaming session.
 

How Are Connected TV Audiences Targeted?

 
chart showing the household reach of select US streaming apps on CTV in H2 2022 with Netflix in first place

Source: https://chart-na1.emarketer.com/261554/household-reach-of-select-us-streaming-apps-on-connected-tv-ctv-h2-2022-reach

Different platforms offer a variety of audience targeting options, including the ability to target based on your own data. Below, we explore some of the most common and popular targeting options.
 

Geolocation

In real estate and advertising, location matters! Even if brands plan to advertise heavily across the US and beyond, targeting their ads by location can help improve relevance and expand their messaging options.

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For example, you might not want to waste money letting viewers in California know that your warmest winter coats are on sale. Or, perhaps your product names or available options vary by location? In these instances, you can enlist different ads for each location to eliminate any confusion, or cause upset when customers can’t find an advertised item near them.
 

Demographics

For many products and services, to make the most of your advertising dollars, selecting specific demographics to target can help reduce costs without sacrificing hitting your desired audiences. Different household demographics advertisers might want to target include: people of certain ages, income levels, or education levels; homeowners / renters; and parents of young children.
 

Platform targeting

Targeting by platform enables advertisers to reach only viewers using specific devices. This is typically done if you want to reach viewers that you know will be more interested in your product or service because they’re using a complementary product, or to reach viewers using a competing/different product that you hope to convert.
 

Contextual targeting

Contextual targeting aims to serve ads that ‘make sense’ in context with the content that is being viewed.

For example, if a viewer is watching a program about running, ads for athletic wear and sneakers would make good contextual sense. You can assume with relative certainty that most viewers watching a television program or movie about running might have interest in those items.
 

Channel targeting

Channel targeting allows advertisers to reach viewers on a specific network. This can be especially beneficial if your product aligns with an overall theme of a given network.

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For example, a company that sells bathroom lighting fixtures might want to target all viewers watching HGTV as many of that network’s shows are focused on home renovation projects. This would give reasonable certainty that a sizable number of viewers may be interested in making their own renovations, or that they’ll remember your brand in the future when they are. It also means your advertising will almost always work in harmony with the content a viewer is watching.
 

First and third-party data

Because CTV advertising is typically part of a larger digital marketing plan, it can be beneficial to leverage first- and third-party data in your audience targeting. This can include your first-party analytics and CRM data, and third-party audiences offered by CTV platforms.
 

Frequency caps

Frequency caps are limits on the number of times a given viewer will be shown your CTV ad. Due to CTV having a fragmented landscape across many networks, services, and platforms, without frequency caps in place, the same viewer may receive your ad numerous times in a short period of time—sometimes even repeatedly during the same ad break. To avoid annoying viewers with repetitive ads, caps can help you preserve your ad effectiveness and brand safety.
 

Important Metrics and Measurements for CTV Advertising

 
The measurability of streaming advertising on the whole makes it an attractive channel for advertisers of all niches and budgets. Some of the key metrics and measurements to help you track your CTV advertising performance include:

  • Impressions
  • Return on Ad Spend (ROAS)
  • Cost per Completed View (CPCV)
  • Cost per Acquisition (CPA)
  • Incrementality
  • Reach
  • Brand Lift
  • Frequency
  • Conversions
  • Gross Rating Point (GRP)
  • Cost per Point (CPP)
  • Cross-Screen Measurement
  • Target Rating Point
  • Video Completion Rate (VCR)
  • Revenue
  • Website Visits

 

Conclusion

 
With customers rapidly shifting from cable and satellite television to streaming TV, advertising options like CTV ads make an increasingly sound investment for advertisers trying to reach any audience. Because CTV advertising has a lower cost of entry than linear TV ads—and brings much higher targeting and measurement options—the playing field has been leveled a bit, giving a significantly larger number of brands and services the opportunity to reach relevant audiences on the biggest screen in the house. How’s that for smart TV?

It’s also important to note that many viewers, particularly those who have grown up watching streaming television, understand that ads are part of the equation. They are open to ad-supported video content when the tradeoff is a lower (or free) subscription that grants them access to quality content.

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Want to learn more about CTV and other forms of video and streaming advertising? Visit our Performance Streaming services page, download our Ultimate Guide to Performance Streaming, or reach out today to chat with an expert. 

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Foundations of Agency Success: Simplifying Operations for Growth

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Foundations of Agency Success: Simplifying Operations for Growth

Foundations of Agency Success Simplifying Operations for Growth

Why do we read books like Traction, Scaling Up, and the E-Myth and still struggle with implementing systems, defining processes, and training people in our agency?

Those are incredibly comprehensive methodologies. And yet digital agencies still suffer from feast or famine months, inconsistent results and timelines on projects, quality control, revisions, and much more. It’s not because they aren’t excellent at what they do. I

t’s not because there isn’t value in their service. It’s often because they haven’t defined the three most important elements of delivery: the how, the when, and the why

Complicating our operations early on can lead to a ton of failure in implementing them. Business owners overcomplicate their own processes, hesitate to write things down, and then there’s a ton of operational drag in the company.

Couple that with split attention and paper-thin resources and you have yourself an agency that spends most of its time putting out fires, reacting to problems with clients, and generally building a culture of “the Founder/Creative Director/Leader will fix it” mentality. 

Before we chat through how truly simple this can all be, let’s first go back to the beginning. 

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When we start our companies, we’re told to hustle. And hustle hard. We’re coached that it takes a ton of effort to create momentum, close deals, hire people, and manage projects. And that is all true. There is a ton of work that goes into getting a business up and running.

1715505963 461 Foundations of Agency Success Simplifying Operations for Growth1715505963 461 Foundations of Agency Success Simplifying Operations for Growth

The challenge is that we all adopt this habit of burning the candle at both ends and the middle all for the sake of growing the business. And we bring that habit into the next stage of growth when our business needs… you guessed it… exactly the opposite. 

In Mike Michalowitz’s book, Profit First he opens by insisting the reader understand and accept a fundamental truth: our business is a cash-eating monster. The truth is, our business is also a time-eating monster. And it’s only when we realize that as long as we keep feeding it our time and our resources, it’ll gobble everything up leaving you with nothing in your pocket and a ton of confusion around why you can’t grow.

Truth is, financial problems are easy compared to operational problems. Money is everywhere. You can go get a loan or go create more revenue by providing value easily. What’s harder is taking that money and creating systems that produce profitably. Next level is taking that money, creating profit and time freedom. 

In my bestselling book, The Sabbatical Method, I teach owners how to fundamentally peel back the time they spend in their company, doing everything, and how it can save owners a lot of money, time, and headaches by professionalizing their operations.

The tough part about being a digital agency owner is that you likely started your business because you were great at something. Building websites, creating Search Engine Optimization strategies, or running paid media campaigns. And then you ended up running a company. Those are two very different things. 

1715505964 335 Foundations of Agency Success Simplifying Operations for Growth1715505964 335 Foundations of Agency Success Simplifying Operations for Growth

How to Get Out of Your Own Way and Create Some Simple Structure for Your Agency…

  1. Start Working Less 

I know this sounds really brash and counterintuitive, but I’ve seen it work wonders for clients and colleagues alike. I often say you can’t see the label from inside the bottle and I’ve found no truer statement when it comes to things like planning, vision, direction, and operations creation.

Owners who stay in the weeds of their business while trying to build the structure are like hunters in the jungle hacking through the brush with a machete, getting nowhere with really sore arms. Instead, define your work day, create those boundaries of involvement, stop working weekends, nights and jumping over people’s heads to solve problems.

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It’ll help you get another vantage point on  your company and your team can build some autonomy in the meantime. 

  1. Master the Art of Knowledge Transfer

There are two ways to impart knowledge on others: apprenticeship and writing something down. Apprenticeship began as a lifelong relationship and often knowledge was only retained by ONE person who would carry on your method.

Writing things down used to be limited  (before the printing press) to whoever held the pages.

We’re fortunate that today, we have many ways of imparting knowledge to our team. And creating this habit early on can save a business from being dependent on any one person who has a bunch of “how” and “when” up in their noggin.

While you’re taking some time to get out of the day-to-day, start writing things down and recording your screen (use a tool like loom.com) while you’re answering questions.

1715505964 938 Foundations of Agency Success Simplifying Operations for Growth1715505964 938 Foundations of Agency Success Simplifying Operations for Growth

Deposit those teachings into a company knowledge base, a central location for company resources. Some of the most scaleable and sellable companies I’ve ever worked with had this habit down pat. 

  1. Define Your Processes

Lean in. No fancy tool or software is going to save your company. Every team I’ve ever worked with who came to me with a half-built project management tool suffered immensely from not first defining their process. This isn’t easy to do, but it can be simple.

The thing that hangs up most teams to dry is simply making decisions. If you can decide how you do something, when you do it and why it’s happening that way, you’ve already won. I know exactly what you’re thinking: our process changes all the time, per client, per engagement, etc. That’s fine.

Small businesses should be finding better, more efficient ways to do things all the time. Developing your processes and creating a maintenance effort to keep them accurate and updated is going to be a liferaft in choppy seas. You’ll be able to cling to it when the agency gets busy. 

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“I’m so busy, how can I possibly work less and make time for this?”

1715505964 593 Foundations of Agency Success Simplifying Operations for Growth1715505964 593 Foundations of Agency Success Simplifying Operations for Growth

You can’t afford not to do this work. Burning the candle at both ends and the middle will catch up eventually and in some form or another. Whether it’s burnout, clients churning out of the company, a team member leaving, some huge, unexpected tax bill.

I’ve heard all the stories and they all suck. It’s easier than ever to start a business and it’s harder than ever to keep one. This work might not be sexy, but it gives us the freedom we craved when we began our companies. 

Start small and simple and watch your company become more predictable and your team more efficient.


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Advertising on Hulu: Ad Formats, Examples & Tips

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hulu guide blog image

Streaming


By Emily Sullivan

With the continued rise in streaming service adoption, advertisers are increasingly turning to OTT (over-the-top) advertising, which allows brands to reach their target audiences while they stream television shows and movies. OTT advertising is advertising delivered directly to viewers over the internet through streaming services or devices, such as streaming sticks and connected TVs. One of the most popular streaming ad-supported streaming services today is Hulu. 

At just $7.99 per month (with ads) and $17.99 per month (without ads), Hulu is a great deal. And where the deals are incredible, the subscribers follow… 

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The formula itself is one we’re all familiar with, and it appears to be working out quite well for Hulu.

  1. Low prices attract more viewers
  2. More viewers brings more eyes to Hulu ads
  3. More eyes on ads brings more interested advertisers
  4. Advertising revenue climbs alongside impressive viewer growth

In this particular scenario, everyone wins! And the proof is in the pudding considering Hulu generated $11.2 billion in revenue in 2023.

Advertising on Hulu Ad Formats Examples Tips

In the following article, we will cover everything you need to know about Hulu including how to advertise on Hulu, ad types available, advertising cost, best examples of Hulu ads, and more. Let’s dive right in.

What is Hulu Advertising?

OTT Video Viewers in US by Service Over Time with over 111 million subscribers In 2023

Image Source: https://www.emarketer.com/content/disney-will-become-streaming-heavyweight

Hulu is a service that offers subscription video on demand. Hulu currently has more than 50.2 million subscribers across their SVOD (ad-free subscription video on demand) and AVOD (advertising-based video on demand) plans, translating to nearly 100 million viewers in 2021. eMarketer predictions estimate that number will grow to 115.6 million viewers by 2024.

Hulu notes on their website that their ad-supported offering is their most popular. Previously shared statistics showed that in 2023, 58% of total Hulu subscribers opted for the ad-supported plan.

Hulu subscriptions can be purchased on their own, or as part of a bundle with other services. One such popular option is The Disney Bundle. The new Disney Bundle brings together the extensive Disney+ and Hulu libraries – including beloved characters, award-winning films and series, and 100 years’ worth of inspiring stories – all in one place.

Hulu’s ad-supported and ad-free plans offer subscribers a vast streaming library, inclusive of thousands of movies and TV episodes. Hulu Originals are also included in both plans, as is the ability to watch on the internet-enabled device of your choosing—TV, mobile, tablet, or laptop. As the first platform to introduce viewer-first advertising innovations, like the industry’s first interactive ad formats, Hulu continues to give viewers choice and control over their ad experience.

Outside of the primary differentiators between the two options—ads or no ads, and cost—the only additional distinction to be made is that the ad-supported version does not allow subscribers to download and watch titles on-the-go.

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Hulu offers a popular option with an ad-supported tier. This utilizes OTT advertising, meaning ads are delivered directly to viewers over the internet through the Hulu platform, rather than traditional cable or satellite TV. Unlike a typical TV buy where you get a set amount of ad space, these OTT ad buys allow for granular targeting based on demographics, location, and interests, similar to what you might experience on other digital platforms.  While these ads are strategically placed before, during, and potentially after your chosen content, they are not skippable. It’s also worth noting that even ad-free tiers might show a few promotional spots for certain shows or live TV events.

Hulu has its very own ad platform that includes a robust set of options for bidding, targeting, and measurement, as well as different ad experiences. 

Why Advertise on Hulu?

In today’s media landscape, reaching your target audience effectively is crucial. Hulu offers a compelling advertising platform with a variety of advantages:

  • Massive Reach – Tap into a vast audience of engaged viewers. Hulu boasts over 50.2 million subscribers, with their AVOD tier reaching a staggering 109.2 million viewers per month.
  • Targeted Engagement – Go beyond traditional TV’s limitations. Hulu’s targeting capabilities allow you to zero in on specific demographics, interests, and even geographies. This ensures your message reaches viewers most likely to resonate with your brand.
  • Cost-Effectiveness – Hulu has many buy options, which makes it accessible for any size client to run a campaign on Hulu. Hulu offers campaign minimums as low as $500, which creates a low barrier to entry for most clients. Especially, when partnering with an agency like Tinuiti, where brands can anticipate 2-3x more efficient CPMs when compared to the general market. This makes it accessible for businesses of various sizes to test and refine their advertising strategies.
  • DRAX – Disney’s Real-Time Ad Exchange establishes direct connections to major media buying platforms for streamlined ad buying across Disney+ and Hulu. This integration increases automation, allowing advertisers easier access to Disney’s inventory. Partnerships with Google and The Trade Desk provide direct paths to Disney’s inventory, offering greater reach, flexibility, and transparency. 
  • Engaging Ad Formats – Hulu offers a variety of ad formats beyond standard video ads. Explore interactive elements to capture viewer attention and create a more immersive brand experience with Shoppable ads, pause ads, takeovers, and more.
  • Brand Safety – Hulu prioritizes brand safety, ensuring your ads appear alongside high-quality content. This minimizes the risk of your brand being associated with inappropriate content.

By leveraging Hulu’s advertising solutions, you can target engaged viewers, deliver impactful messaging, and ultimately reach your marketing goals.

How Advertising on Hulu Works

Hulu offers brands of all sizes a chance to advertise on their platform. And since Hulu falls under the Disney umbrella, advertising opportunities extend beyond the Hulu platform itself. There are opportunities to buy into inventory cross ESPN, Disney+, ABC and more.

It’s important to keep in mind, the method through which you purchase ads plays a role in the measurement insights you’ll receive. Below are the three primary ways to buy ad placements on Hulu, with additional details regarding programmatic buys, and Hulu’s self-service platform.

  1. Purchase ads directly from Hulu sales teams
  2. Programmatic ad buys
  3. Through Hulu’s self-service platform (currently invite-only, but brands can request access)

If you’re not ready to pick up the phone and collaborate with Hulu’s sales team on a large ad buy, you’re probably going to end up using Programmatic Guaranteed ad buys or purchase ad space through the Self Service Platform. Here’s a little more information on each option:

Programmatic Guaranteed (Reserved Buys) and Private Marketplace (Auctionable) 

Ads purchased through a programmatic sales team that works directly with platforms and streaming agencies, like Tinuiti. This offers advanced local and national targeting and measurement capabilities, enhanced reporting, and suite of targeting options at fixed or biddable rates.

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Whether you want to target lookalike audiences, specific demographics, interest or behavioral segments, or leverage audience CRM matching for a customized group, you’ll know exactly when and where your ads showed, and be provided with robust reporting that helps measure what’s working best, and where you should continue to invest for optimal performance. You’ll also enjoy guaranteed media buys that ensure you get the expected visibility and reach.

There are certain Hulu ad types that can’t be purchased programmatically, including sponsored placements, pause ads, and ad-selector ads, among other standout units. For these types, Tinuiti makes reserved buys for our clients from opportunities that are only available through Hulu directly.

Not sure which ad types make the most sense for your business and advertising goals? Our team works with clients to determine which campaign initiatives are best for them, and help ensure their creative meets Hulu’s requirements.

Self-Service Hulu Ads (Beta) – Must RSVP and Be Approved as a Brand

Hulu’s self-serve ad platform allows brands to access ad inventory directly, with a modest $500 campaign minimum. These ads are ideal for smaller businesses that don’t have a sizable streaming ads budget, or are just getting started with OTT and want to test the waters.

The Self-Service Ads beta program offers a glimpse into the future of advertising on Hulu. With features like budget management, targeted audience selection, and ad format flexibility (to some extent), businesses can craft impactful campaigns tailored to their specific needs. However, remember the current limitations and the need for approval before getting started.

Reporting Limitations: Notably, when purchasing through the self-service platform, your reporting will only include impression data; you won’t have insights into where your ads actually ran.

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While this offering is still in beta, Hulu has already shared some early success stories. Learn more here about how Hulu self-serve ads work.

How Much Does Hulu Advertising Cost?

Unlike traditional ad buys, Hulu advertising utilizes a cost-per-thousand-impressions (CPM) model. This means you pay each time one thousand viewers see your ad, with estimates ranging from $10 to $30 CPM. Factors like targeting specifics, competition, and ad format (pre-roll vs. mid-roll, length) can influence the final cost. 

Hulu advertising costs are structured to allow for advertisers of all sizes and budgets, but the total costs, you’ll realize, will largely depend on a number of factors, including:

  • Whether you’re buying directly through Hulu or a DSP (demand-side platform)
  • Any restrictions you place on Hulu regarding where your ads display. Specific audience or genre targeting, and/or frequency caps, may incur a premium as well
  • Which ad types you choose
  • How much creative you will need to generate for your ads (production costs)
  • Seasonality—Q4 advertising costs are higher than other quarters
  • Whether you’re buying through an up-front agreement (advertising commitment for a full TV season), or the scatter market (ad buys that run month-to-month, or quarter-to-quarter) 

How to Advertise on Hulu

Here’s what you need to know to advertise on Hulu, from buying and targeting to measurement and optimization.

Hulu offers several advertising reach options for brands:

  1. National: Reach viewers across the US
  2. Local: Reach a localized target audience
  3. Advanced TV: Automated, data-informed ad buys

Within the Advanced TV category, Hulu has 3 different bidding options:

  • Programmatic Guaranteed: Automated, guaranteed buy with advanced targeting.
  • Private Marketplace: Non-guaranteed buy with increased targeting control.
  • Invite-Only Auction: Find your audience, set your price, and optimize from within your DSP

In Hulu’s invite-only auction, advertisers select their target audience, determine their bid price for that audience, and control and optimize their ad campaigns in real-time based on results and performance. You can learn more about Hulu’s advanced targeting options here.  

When it comes to executing Hulu ads, at Tinuiti, we can take on all the heavy lifting for you.

Ad Types Available on Hulu [With Specs]

In today’s streaming world, capturing viewers’ attention is more important than ever. When it comes to Hulu ads, pre-roll placements (those shown before your chosen content) are proven to be highly effective, especially earlier slots within the pre-roll sequence. This is prime real estate for grabbing viewers before they settle into their show.

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But don’t be limited! Hulu offers a variety of ad formats to suit your needs, including pre-roll, mid-roll (shown during commercial breaks within the content), and even 7-second bumper ads for quick, impactful messaging. Whether you choose a short and sweet 7-second spot or a more detailed 15 or 30-second video ad, Hulu offers the flexibility to tailor your message to your audience and campaign goals. 

When creating your Hulu video ad, it’s important to follow their specifications including:

  • Video Duration: 15 to 30 seconds
  • Audio Duration: Must match video duration
  • Dimensions: 1920×1080 preferred; 1280×720 accepted
  • Display Aspect Ratios: 16:9 preferred; Hulu will accept videos shot with 2.39:1, 1.375:1, 3:4, or 4:3 dimensions, but you must make the video fit a 16:9 ratio by inserting matting on the top and bottom of the video.
  • Video Format: QuickTime, MOV, or MPEG-4
  • File Extensions: .mov or .mp4
  • File Size: 10 GB maximum
  • Audio Format: PCM, AAC
  • Frame Rate: 23.98, 24, 25, 29.97, or 30 fps
  • Frame Rate Mode: Constant
  • Video Bit Depth: 8 or 16 bits
  • Video Bit Rate: 10 Mbps – 40 Mbps
  • Audio Bit Depth: 16 or 24 bits (for audio channel 2)
  • Audio Bit Rate: 192-256
  • Chroma Subsampling: 4:2:0 or 4:2:2
  • Codec ID: Apple ProRes 422 HQ preferred; H.264 accepted
  • Color Space: YUV
  • Scan Type: Progressive Scan
  • Audio Channels: 2 channel stereo
  • Audio Sampling Rate: 48.0 kHz

Hulu offers what they call “a viewer-first ad experience” made up of an extensive variety of different ad products and solutions, including:

Video Commercial

This is the most ‘standard’ ad type available from Hulu, with your video playing during any “long-form content commercial breaks.” Hulu allows 7-, 15- and 30-second video commercials, and “does not accept stitched Ads.” This simply means that if advertisers want to display a 30-second commercial, they will be required to have an asset of the correct length, and can’t ‘stitch together’ two separate 15-second ads.

Ad Selector

This ad type gives the viewer greater control over their ad experience. Viewers will be given the option to choose between two or three different video ads to watch from the same advertiser. This can increase the chances that viewers will be engaged with your ad as they had some degree of choice in watching it. If no ad selection is made within 15 seconds of being presented with the options, one of the two or three available ads will be selected at random and played automatically.

According to Hulu Brand Lift Norms, 2020, products like these that “give viewers choice and control” have “result[ed] in 70% higher lifts than the average campaign on Hulu.”

Branded Entertainment Selector (BES)

Choice comes into play with Hulu’s BES ads as well, but in this scenario, they are choosing not just their ad experience, but their viewing experience as well. Viewers are given the option to watch their programming of choice with the typical commercial breaks, or to enjoy their programming uninterrupted by first watching a longer ad. We like to think of it as finishing your dinner before eating dessert! This is a popular choice for advertisers who want to tell a story with their ad—or advertise a movie or upcoming event—and need more than 15 or 30 seconds to do so.

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Binge Ad

Want to reach viewers dedicating some of their downtime to an hours-long binge session, but don’t want to risk hitting them with the same ad, delivered in the same way, episode after episode? Hulu’s Binge Ad placements are designed with brand safety and a positive watching experience in mind. These “enable marketers to deliver contextually and situationally-relevant messages at the right time and place – during a viewer’s binge session.”

According to the Kantar Brand Lift Study, 2020, ads like these have been shown to “increase[ing] unaided brand awareness by 24% and ad recall by 25%.”

Interactive Living Room

These ads are designed to “foster greater affinity with a brand” through “customizable interactivity” focused on whatever elements of your brand you would like to promote. Whether you want to get the word out about a new product launch, enhanced features of an existing product, a new line of services, a company announcement, or more, these ads make it engaging and easy. Hulu notes that they offer “select functionality via third-party producing and hosting partners,” and that the production lead time is quite a bit longer than for most ad types at “four to six weeks from the receipt of the final assets.”

Max Selector (Beta)

In this ad type, viewers are given a choice over how they would like to learn about the product or service being advertised. Interactive templates are designed to create “a more engaging and immersive choice-based ad experience.”

Branded Slate

Advertisers are given the opportunity to reach audiences before the show has even begun with Branded Slate custom title cards. These brief, static video ads feature your logo with “Presented by” text, with voiceover audio that identifies your brand as the sponsor. Hulu also offers Branded Slate ads specifically tailored to entertainment clients.

Premium Slate

This 7-second ad type is similar to the aforementioned Branded Slate ads, but allows for advertisers to include “their own video, dynamic visuals, and sound” as opposed to a static video with voiceover. If preferred, you can still opt for the voiceover to be handled by Hulu talent, but it is not required as it is with the Branded Slate ads. Hulu also offers Premium Slate ads specifically tailored to entertainment clients.

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GatewayGo

These unique ads are designed with conversions in mind, bringing together “Hulu’s traditional living room video ads with action-oriented prompts and personalized offers.” GatewayGo ads harness “second screen enablement technologies such as QR codes and push notifications” by “shifting conversion actions from the TV to mobile devices.” Viewers who wish to learn more can simply scan the QR code using their phone—which is likely within reach, if not in their hand—or choose to receive notifications.

According to a 2020 Hulu Internal Study, “6 in 10 viewers like that they can discover and act on deals with GatewayGO.” For these ad types, Hulu strongly recommends 30-second placements “to increase engagement,” though the minimum required length is just 15-seconds.

Pause Ad

Pause ads are unique in that they reach viewers who have decided they are ready for a break by pressing the pause button, with the ad serving as a screensaver of sorts. These offer an ideal opportunity to reach viewers in the least intrusive way possible, and give you significant opportunity to increase brand awareness—particularly for viewers who pause often, and for longer periods of time.

Poster Marquee Ad

Want to entice viewers to watch a specific series or theatrical release? This ad type makes it possible by leveraging “existing coming soon design components to promote a trailer for an upcoming title.” Hulu recommends that these should ideally be an “extended trailer,” with 15-second and 30-second ad spots not recommended.

Cover Story Brand Placement

Hulu Cover Story Brand Placement Example

Image Source: https://advertising.hulu.com/ad-products/cover-story-brand-placement/

For this ad type, the only thing Hulu requires is your logo, which will be showcased directly within the Hulu homepage alongside the “Presented By” notation, as shown above. Thanks to their prominent placement, these ads are ideal for increasing exposure, and enhancing brand recognition.

Sponsored Collection Brand Placement

Hulu Sponsored Collection Brand Placement Ad

Image Source: https://advertising.hulu.com/ad-products/sponsored-collection-brand-placement/

This placement offers “advertisers extended ownership of a collection sponsorship through logo placement adjacent to content in Hulu’s UI across devices.” As shown in the above example where “Newly Added TV” programs are “Presented by LOGO” (your logo here!), your sponsorship displays in a highly visual location that naturally draws in viewers’ eyes.

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Promoted Content Marquee Ad

This unique advertising option “mimics the existing Hulu UI design and only supports long-form full-length episodes or feature films.” Because “Hulu viewers already recognize this design to promote content that is available for them to watch,” they may not even realize what they’re seeing is an ad.

*Note: The ad units mentioned are almost exclusively available via guaranteed IOs (national or local) and not the audience-driven methods.

Best Practices for Hulu Advertising Campaigns

Whether you’re promoting a new product, driving subscriptions, or raising brand awareness, these best practices will help you maximize the impact of your Hulu ads and connect with your target audience effectively. Let’s explore the essential tactics and insights for creating high-performing Hulu ad campaigns.

Follow Creative Best Practices for Video Campaigns

Adhere to Ad Specs – Always adhere to the platform’s ad specifications to ensure your video displays correctly across different devices and platforms. This includes guidelines on resolution, aspect ratio, file format, and maximum file size. 

Build a Strong Hook – Grab the viewer’s attention within the first 3-5 seconds. This can be achieved through visually striking imagery, compelling storytelling, or posing a thought-provoking question. The key is to pique curiosity and entice viewers to continue watching.

Consistent Branding is Key – Maintain consistent branding across your video campaigns to reinforce brand recognition and recall. This includes using your logo prominently at the beginning and end of the ad, as well as incorporating consistent color schemes, fonts, and messaging that align with your brand identity.

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Stick with Simple Messaging – Focus on communicating a single, specific idea or message in your video ad. Avoid overcrowding the ad with too much information, as this can overwhelm viewers and dilute the effectiveness of your message. Keep it simple, clear, and memorable.

Use Text for Emphasis – Use text overlays strategically to highlight key messaging or calls to action in your video ad. This ensures that important information is conveyed effectively, especially for viewers who may be watching with the sound off.

Provide Variety and Freshness – Rotate your video ads regularly to prevent audience fatigue and maintain engagement. Experiment with different creative strategies, visuals, and messaging to keep your ads fresh and appealing. This also allows for A/B testing to determine which creatives resonate best with your target audience.

Utilize Audience Targeting – Tailor your creative content to resonate with the specific interests, preferences, and demographics of your target audience. This may involve customizing the storyline, imagery, and messaging to appeal to different audience segments and maximize relevance and impact.

By incorporating these best practices into your video campaigns, you can enhance their effectiveness and drive better results in terms of engagement, conversion, and brand awareness.

Use Hulu’s Targeting Capabilities Wisely

Hulu Ad Manager empowers you with a robust suite of targeting options to reach your ideal audience.  Here’s how to leverage them effectively:

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Audience Targeting:

  • Demographics – Reach viewers based on age, gender, income, and parental status. This allows you to tailor your message to resonate with specific segments.
  • Lifestyle Interests – Target users based on their interests and hobbies. For example, target fitness enthusiasts with ads for your activewear line. (Explore the full range of interest categories within Hulu Ad Manager).
  • Behavioral Targeting – Go beyond demographics by targeting viewers based on their past purchase behavior or browsing habits. This can significantly increase campaign relevance.

Content Targeting:

  • Genre Targeting – Place your ads within specific genres (e.g., comedy, sports, documentaries) relevant to your product or service. This ensures your message reaches viewers actively seeking content aligned with your offering.
  • Programmatic Targeting – Target specific shows or programs on Hulu where your ideal audience is likely to be watching. This allows for highly focused ad placement.

Location Targeting:

  • Geographic Targeting – Reach viewers within specific cities, zip codes, Designated Marketing Areas (DMAs), or regions. This is ideal for promoting local businesses or service-based offerings with a geographical focus.

Pro Tips for Smart Targeting:

  • Combine Targeting Methods – Utilize a combination of audience and content targeting for maximum reach and relevance. For example, target viewers interested in fitness (audience) while placing your ads within workout-related shows (content).
  • Leverage Lookalike Audiences – Expand your reach by targeting audiences similar to your existing customers.
  • Test and Refine – Don’t be afraid to experiment with different targeting combinations and monitor performance metrics to optimize your campaigns for better results.

By strategically using Hulu’s targeting options, you can ensure your ads reach the right people at the right time, maximizing campaign effectiveness and ROI.

Measure and Optimize Campaigns Based on Performance

Data is king when it comes to optimizing your Hulu ad campaigns. Hulu offers advertisers varying measurement and attribution insights for their campaigns, which depend in part on how the ads were purchased. Hulu’s attribution capabilities let advertisers measure brand lift and direct ROI, and business outcomes across QSR, retail, ecommerce, tune-in, automotive, and CPG categories. Third-parties like Tinuiti offer more omnichannel campaign analysis options.

Here’s how to leverage Tinuiti’s expertise to achieve peak performance:

Set SMART Goals and Benchmarks

It’s crucial to begin by defining your objective with a clear SMART goal that aligns with your overarching marketing strategy. This goal should be Specific, Measurable, Achievable, Relevant, and Time-Bound. Once your objective is established, it’s essential to establish benchmarks by leveraging historical data from past campaigns or industry averages. These benchmarks will help set realistic expectations and guide your efforts in tracking key metrics such as impressions, clicks, and conversions throughout the campaign.

Continuous Optimization

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At Tinuiti, our omnichannel campaign analysis allows us to compare your Hulu campaign’s performance with other marketing channels like social media and email, giving you a holistic understanding of how customers engage with your brand across different platforms. But it’s not just about data – our team of experts dives deep, uncovering hidden patterns within the data and translating them into actionable insights. 

These insights then fuel data-driven recommendations for optimizing your Hulu campaign. We might suggest adjustments to your targeting strategies, ad creatives, or even budget allocation to ensure you achieve the best possible results. We can also analyze viewer fatigue and recommend A/B testing new ad variations, keeping your audience engaged and maximizing the effectiveness of your Hulu advertising.

Putting it into Practice

After a few weeks of your campaign running, revisit your initial benchmarks to evaluate progress. Don’t just rely on surface-level data, leverage omnichannel analysis to understand what elements are resonating and which areas need improvement. This comprehensive analysis allows you to pinpoint the strengths and weaknesses of your targeting, ad creatives, and budget allocation. 

By taking a data-driven approach and utilizing Tinuiti’s expertise, you can continuously measure, optimize, and refine your Hulu campaigns, driving maximum impact and achieving your marketing objectives.

Example of Hulu TV Ad promoting livestreaming sports

Best Examples of Hulu Ads

Let’s dive into some of the most memorable and effective Hulu ad campaigns that have left a lasting impression on audiences.

Filippo Berio Interactive Ads

Hulu Interactive Campaign for Filippo Berio

Image Source: https://advertising.hulu.com/brand-stories/filippo-berio/

Filippo Berio is a brand best known for their selection of olive oils and vinegars, with a legacy tracing back more than 150 years. Their thoughtful use of interactive ad formats helped them in connecting with potential customers, with their Hulu ad campaign resulting in a “2x lift in brand favorability”, and a “3x lift in brand consideration.”

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  • Filippo Berio’s use of the Interactive Living Room ad type “was especially impactful as an awareness-driver, highlighted by a +44% lift in brand awareness and +64% lift in message association
  • Other ad types were included in the campaign as well, including standard and situational ads

ThirdLove Contextually Relevant Original Sponsorships

Hulu Sponsorship Campaign for ThirdLove

Image Source: https://advertising.hulu.com/brand-stories/thirdlove/

ThirdLove is a lingerie and loungewear company that focuses on body positivity and inclusivity in their marketing, and importantly, their range of products and sizes. The brand crafted a Hulu advertising strategy that aimed to enhance “awareness and overall consideration for their products across women of all demographics” with ads that ran “alongside premium and contextually-relevant Original content.”

ThirdLove saw results that outperformed “both industry and Hulu retail norms,” in part by advertising during women-produced content, and content that focuses on themes and issues that are of importance to women. This Hulu campaign included:

  • Co-branded ads at the start of every episode of Mrs. America
  • Creative that included a CTA and a discount code that could be accessed by “visiting a unique URL tied to the Hulu Original series, Little Fires Everywhere

Best Strategy for Hulu Advertising [from the experts]

Experimentation is at the heart of all statistically-significant data, and Hulu makes experimentation easy and affordable. With more than a dozen distinct ad types to choose from—and an array of ad lengths to suit all advertising needs and goals—you are provided with all the necessary tools to find the ideal methods to reach new and existing audiences.

With Hulu ads, there is no shortage of innovative options to choose from, and we encourage you to experiment extensively, but also strategically. No matter how sizable your streaming ads budget, no brand can afford to throw everything at the wall and see what sticks. But you can thoughtfully design combinations of differing visual components, and ad lengths, to see which resonate best with viewers.

These learnings can then be applied across similar streaming platforms as well, many of which won’t have the same robust inventory of options to experiment with.

According to a Nielsen CTV Analytics study, 62% of Hulu viewers never saw a brand’s ad campaign on linear TV, making Hulu a critical partner to brands trying to reach new audiences or their full target audience. And with Hulu’s ability to audience-target based on CRM matching or behavioral segments, Hulu is an important partner in delivering addressable TV at scale.

If you’re interested in advertising on OTT/Streaming TV, check out Tinuiti’s TV & Audio advertising services.

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Editor’s Note: This post was originally published by Tara Johnson in July 2020 and has been updated for freshness, accuracy, and comprehensiveness.

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Updates to data build service for better developer experiences

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Updates to data build service for better developer experiences

Optimizely Feature Experimentation users can now benefit from an average of 87% faster data file updates. The ability to generate data files in a faster and more predictable manner enables our customers to make updates to feature flags and experiments more quickly and reliably.

  1. Datafile build service – Performance, stability
  2. Webhooks by environment – Lower latency across all environments. Push notification that a new datafile is ready
  3. Secure environmentsSecurity

Key features

  • Smoother workflow 
    It lets you update feature flags and experiments faster and more consistently as a seamless workflow step. 
  • Better developer experience 
    Developers can expect faster and more predictable feedback when configuring feature flags during local development.
  • Faster execution 
    Product teams benefit from “kill switches” to roll back problematic features and flawed experiments to protect user experience and conversion rates. 

Finally…

Speed, performance, and usability are key to delivering a better experience, and as such we are always striving to improve the performance of back-end services. Our improved datafile build service enables you to deliver feature flags and experiment changes to your end-users more quickly and reliably.

Optimizely Feature Experimentation generates a JSON datafile that represents the state of an environment in a customer’s Feature Experimentation project, this datafile is polled for and consumed by our SDKs to enable user-level decisions and tracking.

With our new datafile build service, Feature Experimentation customers will experience better performance and reliability when delivering feature flags and experiment changes to end-users. 

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