Hulu Ads Are Twice As Effective As Television Ads

By Megan O'Neill 

According to a new Beet.TV interview with Kevin McGurn, VP of Sales for Hulu, Hulu is blowing television advertising out of the water.  McGurn says that advertisers on Hulu are seeing double the return, compared to the ad load on television.

McGurn told Beet.TV, “When we were founded by Fox and NBC we were designed to be an ad-supported streaming environment, which we are today.”  Although Hulu has two separate revenue channels—advertising and Hulu Plus subscription revenue—McGurn says that, “really our sustaining stream at the moment is advertising.”

Hulu currently serves around 1 billion ads per month to upwards of 30 million unique monthly users, and is en route to reach somewhere in the vicinity of $500 million in revenue for 2011.

According to comScore’s July 2011 U.S. Online Video Rankings, Hulu is the number one online video ad property in the United States, ranked by video ads viewed.  As you can see from the chart below, in July Hulu streamed just under 1 billion ads (962 million), with each viewer watching 40 ads on average., Tremor Video and BrightRoll also served over half a billion video ads each.

1 billion sounds like a lot of ads, but when you consider the fact that Hulu airs less than half the advertising of that on television it doesn’t seem so bad.  McGurn explained that a typical 30-minute show slot on TV has 22 minutes of show content and 8 minutes of ads.  Hulu airs only about 3.5 minutes of ads for a 22-minute show.  In other words, they show half the ads but get double the return.  Sounds like Hulu is on the right track, eh?

Are you surprised by these stats?  Let us know in the comments below.

Megan O’Neill is the resident web video enthusiast here at Social Times.  Megan covers everything from the latest viral videos to online video news and tips, and has a passion for bizarre, original and revolutionary content and ideas.