Dive Brief:
- Programmatic video ads have a new player in Hulu, which is set to launch a private ad exchange.
- Hulu’s platform will be powered by Facebook’s video ad exchange.
- The move follows news that the online video streaming service is set to offer a premium, no-ad version of its service, dubbed "Project NOAH."
Dive Insight:
Video advertising is a trend simply blowing up, and programmatic ads are close to daily news, so it shouldn’t be surprising that Hulu is joining the party with a programmatic video ad platform based on Facebook’s LiveRail video ad exchange. The marketplace covers desktop, mobile and connected TVs for automated ad buys.
Peter Naylor, Hulu's senior VP-advertising, told Ad Age, "The rise of programmatic is undeniable. It's a huge trend, and it's one that is making its way to premium video environments like ours. And we feel that this is a bit of a watershed for the premium video-on-demand space."
The launch of Hulu’s new programmatic platform follows news that it is also going to offer a premium, no-ad version of its service. The cost for the ad-free tier hasn’t been determined but is likely to be $4 to $6 more per month than the current ad-supported subscription at $7.99.
