With the ongoing rise in streaming service adoption, advertisers are increasingly turning to OTT (over-the-top) advertising, which enables brands to reach their target audiences while they enjoy television shows and movies. OTT advertising refers to ads delivered directly to viewers over the internet through streaming services or devices, such as streaming sticks and connected TVs. One of the most popular ad-supported streaming services today is Hulu.
At just $7.99 per month (with ads) and $17.99 per month (without ads), Hulu offers an attractive deal for viewers. And where the deals are appealing, subscribers tend to follow…The formula is straightforward and appears to be working exceptionally well for Hulu:
Low prices attract more viewers;
More viewers bring more eyes to Hulu ads;
More eyes on ads attract more interested advertisers;
Advertising revenue climbs alongside impressive viewer growth.
In this scenario, everyone benefits! The results speak for themselves, as Hulu generated $11.2 billion in revenue in 2023.
In this article, we will cover everything you need to know about advertising on Hulu, including the different ad types available, advertising costs, the best examples of Hulu ads, and more. Let’s dive in!
What is Hulu Advertising?
Hulu is a subscription-based service that offers video on demand, currently boasting over 50.2 million subscribers across its SVOD (ad-free subscription video on demand) and AVOD (advertising-based video on demand) plans. This translates to nearly 100 million viewers in 2021, with eMarketer predicting that number will grow to 115.6 million viewers by 2024.
According to Hulu’s website, their ad-supported offering is the most popular among subscribers. In 2023, statistics revealed that 58% of total Hulu subscribers opted for the ad-supported plan.
Hulu subscriptions can be purchased individually or as part of a bundle with other services. One popular option is The Disney Bundle, which combines the extensive libraries of Disney+ and Hulu, featuring beloved characters, award-winning films and series, and a century’s worth of inspiring stories—all in one place.
Both Hulu’s ad-supported and ad-free plans provide subscribers with access to a vast streaming library, including thousands of movies and TV episodes. Hulu Originals are available on both plans, and subscribers can watch on any internet-enabled device, whether it’s a TV, mobile phone, tablet, or laptop. As a pioneer in viewer-first advertising innovations, Hulu has introduced features like the industry’s first interactive ad formats, giving viewers more choice and control over their ad experience.
Key Differences Between Plans
The primary distinctions between Hulu’s ad-supported and ad-free options are straightforward: one includes ads while the other does not, and there is a difference in cost. Additionally, the ad-supported version does not allow subscribers to download and watch titles offline.
Hulu’s ad-supported tier utilizes OTT advertising, meaning ads are delivered directly to viewers over the Internet through the Hulu platform rather than through traditional cable or satellite TV. Unlike typical TV ad buys, which offer a set amount of ad space, OTT ad buys allow for granular targeting based on demographics, location, and interests—similar to other digital platforms. While these ads are strategically placed before, during, and potentially after your chosen content, they are not skippable. It’s also important to note that even ad-free tiers may display a few promotional spots for certain shows or live TV events.
Hulu has developed its own ad platform, which includes a robust set of options for bidding, targeting, and measurement, as well as various ad experiences. This platform enables advertisers to effectively reach their desired audiences while maximizing the impact of their campaigns.
Why Advertise on Hulu?
In today’s media landscape, effectively reaching your target audience is crucial for success. Hulu offers a compelling advertising platform with a variety of advantages that make it an attractive option for brands looking to connect with viewers.
1. Massive Reach
Hulu provides access to a vast audience of engaged viewers. With over 50.2 million subscribers, their AVOD tier reaches an impressive 109.2 million viewers per month. This extensive reach allows brands to tap into a diverse audience and maximize their visibility. In my experience, having access to such a large viewer base can significantly enhance brand awareness, especially for new or emerging brands looking to establish themselves in the market.
2. Targeted Engagement
Hulu goes beyond the limitations of traditional TV advertising. Its advanced targeting capabilities enable you to focus on specific demographics, interests, and even geographic locations. This ensures that your message reaches viewers who are most likely to resonate with your brand, enhancing the effectiveness of your campaigns. I believe that this level of targeting is essential in today’s advertising landscape, where consumers are bombarded with messages. Tailoring your ads to specific audiences can lead to higher engagement and conversion rates.
3. Cost-Effectiveness
Hulu offers a range of buying options, making it accessible for clients of all sizes to run campaigns. With campaign minimums as low as $500, there is a low barrier to entry for most clients. Partnering with an agency like Tinuiti can further enhance cost efficiency, as brands can anticipate 2-3x more efficient CPMs compared to the general market. This flexibility is particularly beneficial for small businesses or startups that may have limited marketing budgets. It allows them to experiment with advertising without a significant financial commitment.
4. DRAX (Disney’s Real-Time Ad Exchange)
Disney’s Real-Time Ad Exchange (DRAX) establishes direct connections to major media buying platforms, streamlining ad buying across Disney+ and Hulu. This integration increases automation, providing advertisers with easier access to Disney’s inventory. Partnerships with Google and The Trade Desk offer direct paths to Disney’s inventory, resulting in greater reach, flexibility, and transparency for advertisers. I find this integration particularly exciting, as it opens up new avenues for brands to reach audiences across multiple platforms seamlessly.
5. Engaging Ad Formats
Hulu offers a variety of ad formats that go beyond standard video ads. Brands can explore interactive elements to capture viewer attention and create a more immersive brand experience. Options like Shoppable ads, pause ads, and takeovers allow for creative engagement with the audience. From my perspective, utilizing these innovative ad formats can significantly enhance viewer interaction and make the advertising experience more enjoyable for consumers. It’s a great way to stand out in a crowded marketplace.
6. Brand Safety
Hulu prioritizes brand safety, ensuring that your ads appear alongside high-quality content. This commitment minimizes the risk of your brand being associated with inappropriate or controversial content, providing peace of mind for advertisers. In an age where brand reputation is paramount, knowing that your ads are placed in a safe environment is invaluable. It allows brands to focus on their messaging without worrying about potential backlash.
How Advertising on Hulu Works?
Hulu provides brands of all sizes with the opportunity to advertise on their platform. As part of the Disney umbrella, advertising opportunities extend beyond Hulu itself, allowing brands to buy inventory across ESPN, Disney+, ABC, and more. This cross-platform capability can significantly enhance a brand’s reach and visibility.
Key Considerations
It’s important to keep in mind that the method through which you purchase ads will influence the measurement insights you receive. Below are the three primary ways to buy ad placements on Hulu, along with additional details regarding programmatic buys and Hulu’s self-service platform.
Purchase Ads Directly from Hulu Sales TeamsThis option allows brands to collaborate directly with Hulu’s sales team to create tailored advertising campaigns. This approach is ideal for larger brands or those looking for a more customized advertising strategy. Working directly with Hulu can provide valuable insights and support throughout the campaign process.
Programmatic Ad BuysProgrammatic advertising allows brands to automate the buying of ad space through technology. This method offers flexibility and efficiency, enabling advertisers to target specific audiences based on data-driven insights. Programmatic Guaranteed ad buys ensure that your ads will run in specific inventory, providing a level of certainty in your advertising strategy. This option is particularly beneficial for brands looking to optimize their ad spend and reach their target audience effectively.
Hulu’s Self-Service Platform(Currently invite-only), Hulu’s self-service platform allows brands to manage their advertising campaigns independently. Brands can request access to this platform, which provides tools for purchasing ad space, tracking performance, and analyzing results. This option is great for smaller brands or those who prefer a hands-on approach to their advertising efforts.
Programmatic Guaranteed (Reserved Buys) and Private Marketplace (Auctionable)
Hulu offers two primary methods for purchasing ads: Programmatic Guaranteed (Reserved Buys) and Private Marketplace (Auctionable). These options allow brands to leverage advanced targeting and measurement capabilities while ensuring optimal visibility and reach.
Programmatic Guaranteed (Reserved Buys)
Ads purchased through a programmatic sales team that collaborates directly with platforms and streaming agencies provide several advantages:
Advanced Targeting: This method offers enhanced local and national targeting capabilities. Brands can target lookalike audiences, specific demographics, interest or behavioral segments, and even leverage audience CRM matching for a customized group.
Robust Reporting: Advertisers receive detailed reporting that helps measure what’s working best and where to continue investing for optimal performance. You’ll know exactly when and where your ads were shown, allowing for data-driven decision-making.
Guaranteed Media Buys: This ensures that you get the expected visibility and reach, providing peace of mind that your advertising investment is being utilized effectively.
However, it’s important to note that certain Hulu ad types cannot be purchased programmatically. These include sponsored placements, pause ads, and ad-selector ads, among other standout units.
Private Marketplace (Auctionable)
In addition to Programmatic Guaranteed buys, Hulu also offers a Private Marketplace option. This auction-based model allows advertisers to bid on ad inventory in a more flexible manner. Brands can access premium inventory while still benefiting from advanced targeting options.
Self-Service Hulu Ads (Beta) – Must RSVP and Be Approved as a Brand
Hulu’s self-serve ad platform allows brands to access ad inventory directly, making it an attractive option for businesses looking to dip their toes into OTT advertising. With a modest campaign minimum of $500, this platform is ideal for smaller businesses that may not have a sizable streaming ads budget or are just getting started with OTT and want to test the waters.
Features of the Self-Service Ads Beta Program
The Self-Service Ads beta program offers a glimpse into the future of advertising on Hulu. Here are some key features:
Budget Management: Brands can manage their advertising budgets effectively, allowing for greater control over spending and campaign adjustments.
Targeted Audience Selection: The platform provides options for selecting targeted audiences, enabling brands to reach specific demographics that align with their marketing goals.
Ad Format Flexibility: While there are some limitations, businesses can choose from various ad formats to craft impactful campaigns tailored to their specific needs.
Important Considerations
Before getting started with the self-service platform, it’s essential to keep in mind the current limitations and the need for approval as a brand. Here are a few points to consider:
Approval Process: Brands must RSVP and be approved to access the self-service platform. This step ensures that Hulu maintains quality and brand safety standards.
Reporting Limitations: One notable limitation is that when purchasing through the self-service platform, your reporting will only include impression data. Unfortunately, you won’t have insights into where your ads actually ran, which can limit your ability to analyze campaign performance comprehensively.
Early Success Stories
Despite being in beta, Hulu has already shared some early success stories from brands that have utilized the self-service ads platform. These examples highlight the potential effectiveness of self-service advertising on Hulu and provide inspiration for businesses considering this option.
How Much Does Hulu Advertising Cost?
Hulu advertising operates on a cost-per-thousand-impressions (CPM) model, which means you pay each time one thousand viewers see your ad. Estimates for CPM on Hulu typically range from $10 to $30. However, several factors can influence the final cost, including targeting specifics, competition, and the ad format (such as pre-roll vs. mid-roll and the length of the ad). In my experience, understanding this model is crucial for budgeting effectively, as it allows you to gauge how much you’ll need to invest to reach your desired audience.
Key Factors Influencing Hulu Advertising Costs
Buying Method: Whether you’re purchasing ads directly through Hulu or using a DSP (demand-side platform) can affect pricing. Direct buys may offer different rates compared to programmatic purchases. I’ve found that working directly with Hulu can sometimes yield better insights and support, which can be invaluable for optimizing your campaigns.
Targeting Restrictions: Any restrictions you place on Hulu regarding where your ads display can incur additional costs. Specific audience targeting, genre targeting, or frequency caps may lead to a premium on your CPM. From my perspective, investing in precise targeting is often worth the extra cost, as it can significantly enhance the effectiveness of your ads by ensuring they reach the right viewers.
Ad Types: The type of ad you choose will also impact costs. Different formats (e.g., interactive ads, sponsored placements, or standard video ads) may have varying price points. I believe that experimenting with different ad types can help you discover what resonates best with your audience, so it’s worth considering a mix of formats in your campaigns.
Creative Production Costs: Consider how much creative content you will need to generate for your ads. Production costs can add to your overall advertising budget, especially if you require high-quality video production or custom graphics. In my experience, investing in high-quality creativity can pay off in the long run, as it often leads to better engagement and conversion rates.
Seasonality: Advertising costs can fluctuate based on the time of year. For instance, Q4 (the holiday season) typically sees higher advertising costs compared to other quarters due to increased demand for ad space. I’ve noticed that planning campaigns around off-peak times can help brands save money while still reaching their target audience effectively.
Up-Front Agreements vs. Scatter Market: Whether you’re buying through an up-front agreement (which involves a commitment for a full TV season) or the scatter market (where ad buys run month-to-month or quarter-to-quarter) can also influence pricing. Up-front agreements may offer more favorable rates, while scatter market buys can be more flexible but potentially more expensive. In my opinion, if you have the budget and commitment, up-front agreements can provide stability and predictability in your advertising strategy.
How to Advertise on Hulu?
Here’s what you need to know to advertise on Hulu, from buying and targeting to measurement and optimization.
Hulu offers several advertising reach options for brands:
National: Reach viewers across the US.
Local: Reach a localized target audience.
Advanced TV: Automated, data-informed ad buys.
In my experience, choosing the right reach option is crucial for maximizing your campaign’s effectiveness. If your brand has a national presence, the national option can significantly enhance visibility, while local targeting is ideal for businesses looking to connect with specific communities.
Advanced TV Bidding Options
Within the Advanced TV category, Hulu has three different bidding options:1. Programmatic Guaranteed: Automated, guaranteed buy with advanced targeting.
Private Marketplace: Non-guaranteed buy with increased targeting control.
Invite-Only Auction: Find your audience, set your price, and optimize from within your DSP. I find that understanding these bidding options is essential for brands to tailor their advertising strategies effectively. For instance, Programmatic Guaranteed is excellent for brands that want certainty in their ad placements, while the Private Marketplace offers more flexibility for those looking to experiment with different targeting strategies.
In Hulu’s invite-only auction, advertisers select their target audience, determine their bid price for that audience, and control and optimize their ad campaigns in real-time based on results and performance. This real-time optimization capability is particularly valuable, as it allows brands to adjust their strategies on the fly, ensuring they get the most out of their advertising spend.
You can learn more about Hulu’s advanced targeting options here. In my opinion, leveraging these advanced targeting capabilities can significantly enhance the effectiveness of your campaigns, allowing you to reach the right audience with the right message at the right time. By carefully considering your advertising goals and utilizing Hulu’s diverse options, you can create impactful campaigns that resonate with viewers and drive results.
Best Practices for Hulu Advertising Campaigns
Whether you’re promoting a new product, driving subscriptions, or raising brand awareness, these best practices will help you maximize the impact of your Hulu ads and connect with your target audience effectively. Let’s explore the essential tactics and insights for creating high-performing Hulu ad campaigns.
Follow Creative Best Practices for Video Campaigns
To maximize the effectiveness of your video campaigns on Hulu, it’s essential to adhere to creative best practices. Here are some key strategies to consider.
Adhere to Ad Specs
Always adhere to the platform’s ad specifications to ensure your video displays correctly across different devices and platforms. This includes guidelines on resolution, aspect ratio, file format, and maximum file size. In my experience, following these specifications not only prevents technical issues but also enhances the overall viewing experience, making your ads more professional and polished.
Build a Strong Hook
Grab the viewer’s attention within the first 3-5 seconds. This can be achieved through visually striking imagery, compelling storytelling, or posing a thought-provoking question. The key is to pique curiosity and entice viewers to continue watching. I believe that a strong hook is critical; if you can captivate your audience right away, they are more likely to engage with your message throughout the ad.
Consistent Branding is Key
Maintain consistent branding across your video campaigns to reinforce brand recognition and recall. This includes using your logo prominently at the beginning and end of the ad, as well as incorporating consistent color schemes, fonts, and messaging that align with your brand identity. From my perspective, consistent branding helps create a cohesive brand image, making it easier for viewers to remember and connect with your brand.
Stick with Simple Messaging
Focus on communicating a single, specific idea or message in your video ad. Avoid overcrowding the ad with too much information, as this can overwhelm viewers and dilute the effectiveness of your message. Keep it simple, clear, and memorable. In my experience, simplicity is often more impactful. A clear and concise message resonates better with viewers and is easier to recall later.
Use Text for Emphasis
Use text overlays strategically to highlight key messaging or calls to action in your video ad. This ensures that important information is conveyed effectively, especially for viewers who may be watching with the sound off. I find that text can serve as a powerful tool to reinforce your message, making it accessible to a wider audience regardless of their viewing environment.
Provide Variety and Freshness
Rotate your video ads regularly to prevent audience fatigue and maintain engagement. Experiment with different creative strategies, visuals, and messaging to keep your ads fresh and appealing. This also allows for A/B testing to determine which creatives resonate best with your target audience. In my opinion, keeping your content dynamic is essential for maintaining viewer interest. Regularly refreshing your ads can lead to better performance and engagement over time.
Utilize Audience Targeting
Tailor your creative content to resonate with the specific interests, preferences, and demographics of your target audience. This may involve customizing the storyline, imagery, and messaging to appeal to different audience segments and maximize relevance and impact. I believe that effective audience targeting can significantly enhance the relevance of your ads, making them more likely to resonate with viewers and drive conversions.
Best Strategy for Hulu Advertising [from the Experts]
Experimentation is at the heart of all statistically significant data, and Hulu makes experimentation easy and affordable. With more than a dozen distinct ad types to choose from—and an array of ad lengths to suit all advertising needs and goals—you are provided with all the necessary tools to find the ideal methods to reach new and existing audiences. In my experience, embracing a culture of experimentation can lead to valuable insights that drive campaign success.
With Hulu ads, there is no shortage of innovative options to choose from, and we encourage you to experiment extensively, but also strategically. I believe that while it’s important to explore different ad formats and strategies, it’s equally crucial to approach this experimentation with a clear plan. No matter how sizable your streaming ads budget is, no brand can afford to throw everything at the wall and see what sticks. Instead, you can thoughtfully design combinations of differing visual components and ad lengths to see which resonates best with viewers.
These learnings can then be applied across similar streaming platforms as well, many of which won’t have the same robust inventory of options to experiment with. From my perspective, leveraging the insights gained from Hulu can provide a competitive edge when advertising on other platforms, allowing brands to refine their strategies based on proven successes.
According to a Nielsen CTV Analytics study, 62% of Hulu viewers never saw a brand’s ad campaign on linear TV, making Hulu a critical partner for brands trying to reach new audiences or their full target audience. This statistic highlights the unique opportunity Hulu provides for brands to connect with viewers who may not be reachable through traditional advertising channels. And with Hulu’s ability to audience-target based on CRM matching or behavioral segments, Hulu is an important partner in delivering addressable TV at scale.
In conclusion, the best strategy for Hulu advertising involves a combination of experimentation, strategic planning, and leveraging data insights. By embracing these principles, brands can effectively engage with their target audiences and maximize the impact of their advertising efforts on Hulu.