Streaming sites have changed the way we watch television. Instead of tuning in to the new episode of the Big Bang Theory every Monday night, we can now Netflix and chill, or my favorite, Hulu and commitment, whenever we choose. Netflix runs ad-free, but Hulu still incorporates commercials throughout video unless you choose to pay for the upgraded, commercial-free version.
Hulu has always been a pioneer of new ways to advertise; in 2011, the company incorporated a feature that let viewers choose which commercial they wanted to see from a selection of two or three. A friend of mine complains that this situation is similar to being forced to choose a method of his own execution (“who cares, just get it over with,” type of thing), but in the eyes of a marketer, it’s a simple, innovative way to get viewers to at least think about a brand.
Last year, Hulu adopted yet a newer way to format commercials; an interactive way. This format gives viewers the option to stream programs uninterrupted so long as they engage with an advertisement for 60 seconds beforehand (otherwise, the viewer endures a minimum of 2:30 of commercials throughout). These “engagement ads” require the viewer to do some clicking, scrolling, or other actions in order to move along and run down the clock. For example, an ad for an automotive company may ask you to click on different parts of a car to learn more about each area. Essentially, Hulu is offering viewers a wager. Sixty seconds now or several minutes later?
So why did Hulu choose to approach commercials this way? Because the challenge with traditional advertising is that we can’t know whether or not the viewer actually saw the commercial. No one, not even people who work in advertising, want to sit through commercials. Naturally, we quit paying attention and maybe grab a snack or check Facebook during commercial breaks. Hulu’s interactive ads force viewers to pay attention for a short period of time, and in exchange, they get to enjoy their show without further interruptions. I don’t know about you, but I always opt for the 60-second interactive ads during my Hulu binges.
Hulu’s engagement ads are more expensive than traditional ads, but they are charged on a per-engagement basis rather than per-impression. The goal is not to make more money with more engagements, but to make the same amount of money with fewer advertisements. Transformation Marketing hasn’t adopted the engagement-model of commercials quite yet, but we do have the right tools, minds, and ideas to get people paying attention to your brand!