It’s pretty interesting how Hulu prompts the user to pick their TV Ad preferences. They give you the option of picking between three ads to watch (see above image).
Hulu.com has a major advantage here. They can provide in depth Analytics on what type of commericals viewers want to see. They can study which one people like to pick and which one they actually see. They can also tie this data into what types of shows you watch, your gender, etc. if you are logged in. This is pretty incredible for two main reasons:
1) Test Bed: Companies can now see which commercials perform better with real time data.
They can use advertising on Hulu as a test bed before rolling out ads on TV. (Currently the demographics of viewers on Hulu and regular TV are different but the gap will narrow over the next 10 years)
2) Grow Sales: Companies can see which ads convert into sales or brand engagement.
Did you know that Paid Search Advertising is almost as big as TV Advertising? Paid Search Advertising will will easily surpass TV Advertising over the next few years. The reason why is due to the fact that people can track and see if advertising actually works. Once a company can see that advertising is working it is easy to rationalize putting every dime you have into it.
So how can Hulu invent the future of TV Ads?
Just like how Google and Facebook customize your experience based on things you have clicked on. Hulu can tailor your experience on what ads you see. If they know you like sci-fi TV shows they can shows ads of other sci-fi TV shows you would like. Once they convert you into someone watching more TV shows they can start learning about your interests and showing you ads based on things you said you like. A simple question like the image above is really all they need to ask you. Before you know it Hulu will be able to show you what you need to buy before you know it!
Hulu is sitting on a major gold mine (just like Google)
1. They can get you watching more TV (by learning more about you)
2. They can get brands to pay a premium to learn what ads work… and when they do charge more for it
Do you think Hulu is the future of TV? Do you think Netflix should try a free approach with their new streaming only plan and inject ads like Hulu? Please let me know in the comments.