Pitching its OTT platform to marketers as a way to target “hard to reach” younger viewers moving away from traditional television, Hulu has announced that 53% of the users it exposes to ad campaigns don’t watch any linear TV.
The company cited Nielsen statistics suggesting that among the 21 million “cordless” viewers it reaches with advertising, 85% are considered “light” users of linear television.
According to data released in January by the Winterberry Group, U.S. advertising revenue generated by over-the-top video streaming will grow by around 20% to $2.6 billion. But that still pales in comparison to linear TV, which will generated $69.1 billion in advertising.
So Hulu—which has pivoted back toward advertising support—is using client testimonials to try to move the needle a little faster.
It noted a recent national campaign for Kroger’s Simple Truth brand, which saw 82% of its impressions for the 25-54 demographic come exclusively through Hulu.
“Our customers don’t differentiate between linear and OTT, and it’s more difficult to reach our younger customers through linear, so we’ve adjusted our media planning and buying approach to look at video more holistically and to maximize reach across all formats,” said Kendra Clune, associate media director for Kroger. "The landscape is still fragmented and most providers have limited scale, so we are leaning in with select partners that can provide the scale and incrementality Kroger requires.”
Another “tier 2 auto” campaign for Lexus dealerships, meanwhile, saw 72% exclusive reach on Hulu.
“As marketers, we know the video landscape is evolving and fragmenting across more consumer choices for video consumption,” said Linda Ranieri, Lexus Dealer Association (LDA), media director. The LDA invested streaming dollars with Hulu because the platform allowed us to target our customers in local markets to deliver commercials within premium, brand-safe content.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!
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