November 1st, 2016 | Read more articles from 2016 or Visit the News Archive
Hulu’s Deal With Strata Opens the Door to More Effective Local Ad Buying
Originally Appearing at: AdWeek
By: Sami Main
Majority of its viewers still use ad-supported option
Streaming capabilities are starting to look more like linear TV options to advertisers.
STRATA, a media buying and selling software company, has announced it will partner with Hulu to provide an easier solution for ad buyers who want to reach a streaming audience.
Hulu will convert their impressions to TV ratings so local broadcast buyers can incorporate Hulu as a part of their media mix. There’s a balance of local and national ads within Hulu’s rotation.
“Hulu’s partnership with Strata is a sign of the times that the local broadcast marketplace needs to go beyond their conventional TV buying options to meet their clients’ TV advertising objectives,” said Peter Naylor, svp of sales for Hulu.
Hulu promises 92 percent viewability (which is 60 percent higher than industry benchmark) and non-skippable ads where advertisers only pay on 100 percent ad completion.
Although Hulu’s ad-free option poses potential challenges, the company says a majority of its 12 million subscribers still use the $7.99/month ad-supported version of the site.
“Working closely with Hulu enabled us to engineer media buying software solutions that allow for fluid transactions of ads that can appear on any device,” said Judd Rubin, vice president at Strata.
Hulu also has current season content from four of the five largest U.S. broadcast networks, in addition to original series. That is critical to ad buyers. As linear TV viewership falls, many of those viewers are simply streaming those shows.
Strata’s software is currently used by more than a thousand agencies in the U.S. and on 99 percent of broadcast television stations. The two companies share a corporate owner as Comcast owns Strata and has a 30 percent stake in Hulu.