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State of the Screens

Hulu cuts ad breaks by more than half

By April 11, 2019No Comments
Hulu is going to start capping commercial breaks at 90 seconds.

Hulu commercial break lengths (% change):
Old — 180–240s
New — 90s (↓ 50–63%)

Flashback #1: YouTube begins showing twice as many ‘pre-roll’ ads

Key findings from NBCUniversal on the impact of reduced ad load:
1) Ad Likability — ↑ 38%
2) Likelihood to search for brand — ↑ 39%

Quick math:
1) Assuming $20 CPM for 30s ads
2) $0.04 per minute of advertising
3) $1.81 equals the value of 1m focus from customer
4) The break-even for an advertiser would be 1 out of every 91 ads holding the customer’s attention.

More #1: The Age of Interruption is Over, But the TV Business Doesn’t Want to Address It

More #2: Hulu debuts “pause ads” in effort to make TV ads less annoying

More #3: Ad loads rising despite network push to cut back

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.