Hulu cuts ad breaks by more than half


Hulu is going to start capping commercial breaks at 90 seconds.

Hulu commercial break lengths (% change):
1)
Old — 180–240s
2)
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


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