Hulu’s Peter Naylor on Changing the Advertising Model

amp8220Our subscribers come to us for contentamp8221 he explained and they have ample choice with an inventory of 85000 TV episodes amp160Disney recently announced that they are planning to completely acquire Huluamp160 amp160According to Naylor this offers a great opportunity for the streaming service amp160amp8220Control by one owner enables us to move faster and invest more in contentamp8221 he said amp160amp8220Our international expansion will accelerate amp160So we will keep doing what we are doing amp160We have the wind in our sailsamp8221Ad Pod Length ConsistencyIn striving for consistent experiences for viewers Naylor has had to address the issue of inconsistencies in ad pod lengths amp160amp8220There was a time when different shows had different ad pod lengthsamp8221 he explainedamp160 amp8220But now all pods are capped at 90 seconds or less with a countdown clock amp160And we donamp8217t put ads where you donamp8217t expect them to be amp160We try to be thoughtful and also add as much value as possible amp160Further amp8220100 of our advertising is addressable and we only charge for ads that are completedamp8221Naylor and his team are datafocused and also pay great attention to social media to discern what consumers find valuable and objectionable in their viewing experiences amp160amp8220You canamp8217t jam more ads in because you need to make a numberamp8221 he warned because viewers have a lot more content choicesNew Types of Ad Deliveriesamp8220The more time people view on demand the more likely they are to have two to three services and the more time they spend onlineamp8221 Naylor noted amp160amp8220We are trying to figure out nonintrusive ad modelsamp8221 amp160With multiple subscriptions Hulu has to be very careful about ad overload and irrelevancy amp160To that end it has created pause ads which place a static contextual ad on the screen when a viewer presses the pause button amp160They are also rolling out a bingewatching ad product in the fourth quarter for those who watch three or more episodes in a row amp160amp8220We will identify amp8216bingersamp8217 and feed them contextual ads such as amp8216Feed Yourselfamp8217amp8221 he saidamp160 amp8220We make the third episode commercialfree if you watch this 90second ad We want to reinvent the ad modelamp8221For Naylor there exists a full spectrum of ad acceptance amp160amp8220It doesnamp8217t have much to do with age income or geographyamp8221 he said amp160amp8220It has to do with culture and interests We strive to make ads more relevantamp160 When you use data properly relevance skyrocketsamp8220There will always be ad avoidersamp8221 he added amp8220but they are a minorityamp8221When asked how much an adamp8217s creative factors into Huluamp8217s decision about where and how to place it Naylor replied amp8220Ensuring creative is relevant to the person watching is fundamental to a viewerfirst advertising experience amp160A relevant creative means a better experience for the viewer and better results for the advertiseramp8221The FutureNayloramp8217s view of the future is focused on a world of connectedness and expansion courtesy of technological innovations amp160amp8220I canamp8217t imagine a scenario where every television household in America isnamp8217t someday connected to an IP addressamp8221 he saidamp160 amp8220While I donamp8217t know what percentage of TV advertising is going to become addressable in the next two years or how long it will take us to get to a fully addressable future I know the market is undeniably going in one direction with the help of market forces like 5G ATSC 30 and the rise of ondemand OTT viewingamp8221Of course Naylor sees Hulu remaining dominant in the media firmament amp160amp8220Today Hulu is the largest fully addressable marketplace in OTT offering brands the opportunity to target and reach valuable audiences that are no longer found in broadcast television or via MVPDsamp8221 he asserted amp160amp8220Weamp8217re offering the best of both television and digital and brands are coming to realize that OTT should be their first stop for TV in their marketing mixamp8221Photo courtesy of the VideoNuze Video Advertising SummitClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writersamp160

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Hulu’s Peter Naylor on Changing the Advertising Model

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Charlene Weisler

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Hulu’s Peter Naylor on Changing the Advertising Model

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