October 29, 2008
Web Site’s Formula for Success: TV Content With Fewer Ads
“Thumbs up” and “thumbs down” ratings for commercials. Choose-your-own-advertisement options before shows begin. Interactive games during advertising breaks. The New York Times reports.
In the last year these online advertising innovations have been popularized by Hulu, the online video Web site that will celebrate its first anniversary on Wednesday. For all that has been written about Hulu’s easy-to-use, aesthetically pleasing interface, the advertising experience is equally important.
In the place of the long commercial pods that TV viewers have become accustomed to, only one ad is shown during each segment break on Hulu. Fewer ads make the ones on the site more memorable, Hulu executives say, allowing the site to charge higher prices for the ad units.
While Hulu was not the first site to serve up full-length television shows or create new advertising units, it now dominates the emerging market for ad-supported TV and movie streaming. It emerged in public beta form one year ago with 10 advertisers, made its official debut in March, and now counts more than 100 sponsors, from General Motors to Old Spice.
... The half-hour comedies that are so popular on Hulu — “Family Guy” from Fox and “The Office” from NBC — have an average of eight minutes of commercial time on TV. On Hulu, where the sitcoms are especially popular, each show averages about two minutes of ads.
... In a glimpse of the future of ad feedback, Hulu users are encouraged to click buttons indicating whether they like or dislike each ad they see.
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