Cheezit

Hulu hopes to make ads part of your binge session

Hulu is launching a special ad unit aimed at binge-watchers.

What is a binge-watcher?  Hulu defines a binge-watcher as anyone who watches 3+ episodes of a show consecutively.

How common is binge-watching?  Binge-watching accounts for 50%+ of the ad-supported hours on Hulu, and 75% of U.S. consumers binge their favorite shows.

The partners for this test include:
1) Cheez-It
2) Maker’s Mark Bourbon
3) Sparkle Paper Towels

The types of binge-ad formats, according to Axios:
1) Ad-free episode
2) Promotion ads

Hulu subscriptions (% of total) by type according to Bernstein Research:
1) Ad-Supported – 18.4M (63%)
2) Ad-free – 7.9M (27%)
3) Live – 2.7M (10%)
4) Total – 29.0M

Hulu advertising revenue in U.S. (YoY growth) according to eMarketer:
1) 2016 – $873M (↑ 16%)
2) 2017 – $986M (↑ 13%)
3) 2018 – $1.1B (↑ 16%)
4) 2019P – $1.3B (↑ 15%)
5) 2020P – $1.5B (↑ 13%)

Hulu viewers by year (YoY growth):
1) 2016 – 32.7M
2) 2017 – 43.1M (↑ 32%)
3) 2018 – 64.5M (↑ 50%)
4) 2019P – 75.8M (↑ 18%)
5) 2020P – 86.2M (↑ 14%)

Hulu advertising revenue per viewer:
1) 2016 – $26.65
2) 2017 – $22.88
3) 2018 – $17.66
4) 2019P – $17.29
5) 2020P – $17.21

More #1: Peter Chernin: ‘There’s No Reason Hulu Shouldn’t Be Netflix Today’

More #2: Hulu’s Peter Naylor on Changing the Advertising Model

More #3: Hulu is raising price of its live TV service to $55 a month

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