Dive Brief:
- Hulu is reportedly testing performance-based measurements for brands to understand how many consumers purchased a product, downloaded an app or signed up for additional information after seeing their ad on the streaming platform, Adweek reported.
- The new product will match advertisers' customer relationship management data to its own campaign exposure data, enabling Hulu to offer advertisers more granular data on the viewers watching ad-supported content. Several partners are testing the performance-based measurement tool, but Adweek sources declined to share additional partner details.
- Hulu also announced that its partnership with Amazon to make Hulu available on the Alexa-powered Echo Show, has increased the amount of time audiences spend watching shows, according to Deadline. Hulu CMO Kelly Campbell said Alexa users are watching 50% more TV, since they can access shows using voice commands.
Dive Insight:
Hulu continues to roll out new features to attract advertisers looking for new ways to reach audiences, who are increasingly cutting the cord and not watching as much live TV. Unlike traditional cable TV networks, Hulu isn't selling performance-based guarantees like the ones offered by Turner in partnership with AT&T's Xandr. Instead, Hulu is offering the size of its audience, which now includes 25 million U.S. subscribers, along with more flexibility than traditional TV networks and the ability to offer more relevant ads to viewers at the right time and on the right device.
The new performance-based measurements follow reports that Hulu this year will launch "pause ads," which provide a "natural break in the storytelling experience." Hulu says it expects that more than half of its ad revenue will come from "non-disruptive" experiences over the next three years. The platform's ad revenue reached $1.5 billion last year, a 45% year-over-year increase, as brands invest more money in over-the-top TV services like Hulu. In 2018, ad spend on OTT TV was expected to jump 40% to $2 billion, according to a fall update to Magna's U.S. ad forecasts.
Marketers are also showing more of an interest in voice technology, especially as consumer adoption of smart speakers grows. Hulu's partnership with Amazon's Alexa-powered Echo Show illustrates a new opportunity for voice technology. Brands have mostly been leveraging voice for offering product information or answering questions, as most people who own the devices are still not using them to make purchases, but being able to access shows via voice commands is another application that consumers have quickly adopted.
