Field Reports1 Jan, 2009 By: Thomas Haire, Jacqueline Renfrow Response
Hulu Users Prefer Long Ads
By Jacqueline Renfrow ([email protected])
LOS ANGELES — In a recent survey, 88 percent of Hulu.com online video viewers said they preferred to watch one two-minute advertisement at the beginning of a program if it meant no commercial interruptions during the rest of the show, reports AdAge.com.
The other option for viewers is four 30-second ads throughout a 22-minute program.
Viewers can opt-in for the pre-show extended commercial by clicking on an ad that occasionally pops up on the site. The high opt-in rate suggests consumers are selecting what kinds of ads they want to watch, indicating that they will more likely be engaged with the choices they've made.
"The opt-in rate is proving this is something people want," says Christina Lee, a spokeswoman for Hulu. "We are trying to break down a lot of these very traditional ways of thinking about advertising, so this is a way to experiment and an example of something you'll see us doing."
The results also show that consumers aren't adverse to ads, they just like choices. "What consumers don't like is being stuck watching long pre-rolls or being forced to participate and being forced to watch stuff that isn't relevant," says Lori Schwartz, senior vice president and director of the Interpublic Emerging Media Lab. "When you give them a choice, you are thinking about them, and that gets them excited. We are in this culture now where people expect participation and expect to be included and expect two-way communication to happen."
Advertisers currently buying long-form ads on Hulu include Columbia TriStar, American Express, Hyatt, Paramount Pictures, Sprint and Capital One.
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> EDS, an HP company, and Guthy-Renker announce a four-year, $531 million contract extension and expansion to their current 13-year relationship. The new agreement for consumer direct business process outsourcing (BPO) services supports Guthy-Renker's growing customer base in the United States, Canada, Australia, New Zealand and other international territories.
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> Northern Lights Direct Response hires Elizabeth Lim as media buyer/planner. Lim brings several years experience, including strategy and analytics, with past clients including Dell, ING and CHIP Home Income Plan.
> Venable LLP announces that David Levy, a prominent postal regulatory and appellate lawyer, has joined the firm as a partner in its Washington, D.C., office. Levy arrives from Sidley Austin LLP, where he has practiced postal rate work since 1983.
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