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BizReport : Advertising archives : April 18, 2012

Hulu to charge only for ads streamed to completion

Internet TV service Hulu has announced advertisers will not be charged unless their advertisements have been streamed through to completion.

by Helen Leggatt

The online video site, which primarily contains long-form video content, is preparing to change the way it charges advertisers. It has announced it will soon charge advertisers only for when their advertisement is viewed in full. This is for advertising sold by Hulu's advertising team, and will apply to both Hulu and Hulu Plus.

"We aren't going to charge more for this," said Hulu senior VP-sales JP Colaco. "If you pay for a full impression, you will get an impression, full stop."

The video site ran more than 1.5 billion video ads in Feburuary totaling 650 million minutes, according to comScore, more than Google's 1.2 billion ads and 119 million minutes.

Because Hulu doesn't allow users to skip ads their current completion rate stands at 96%, far better than the 88% average for long-form and 54% average for shorter video clips.

"Hulu's 100 percent completion rate model is a big step in the right direction that will positively impact digital video performance," said Donnie Williams, chief digital officer, Horizon Media, in a recent statement.

Tags: Hulu, online video, video advertising

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