Hulu Local - Borrell Associates · 2018-03-16 · Source: Nielsen Local Watch Report, Sep’17;...

Hulu LocalJulie DeTraglia

• What is Hulu?

• Local TV Landscape Trends

• Hulu Local Audience Insights

• Hulu Local & Advertising

LOCAL BUYING ON HULU

Table of Contents

2/27

What Is Hulu?

3/27

THE BEST OF TV MEETS THE BEST OF DIGITAL

Live & On Demand

Local Buying on Hulu

4/27


5/27


Live & On Demand


6/27


Never Miss A Moment

AD

Viewable AdsIndustry-Leading

Viewability

No Skippable AdsDVR-Proof

100% AdCompletionOnly pay for ads

viewed to

completion

Premium Long Form ContentThe Best of Last

Night’s TV, plus

Exclusives &

Originals

Category SeparationSingle ad per

category, per pod

Fair Rotation of AdsHulu offers fair

and equal rotation of

national and local ads

LOCAL BUYING

Optimal Ad EnvironmentLocal ads on Hulu are in a premium environment to deliver an

engaged and active audience, motivated by choice and control.

Hulu’s Local Value Propositions

8/27

Landscape Trends


7/27

Source: Nielsen Program Ratings, Broadcast/Cable Prime, excludes Sustainers, Q4 2011 VS. Q4 2016, Market Break – Top 10 Markets. Right - Nielsen Local Watch Report, Q1’16/Q1’17; A25-54, Average Time Spent per Day

Live TV ratings continue to decline.

Primetime Rating Decline

from 2011 to 2016

Top 10 DMAs – P18-49 Demo

Primetime Rating Decline

from 2011 to 2016

Top 10 DMAs – P18-34 Demo Change in Live TV Usage Q1 ‘16 vs. Q1 ‘17

-35% -41%

-19%

Seattle

-2%

San Francisco

-3%

Denver

-12%

Phoenix

-13%

Dallas

-11%

Houston

-4%

Chicago

-6%

New York

-1%

Philadelphia

-14%

Atlanta

-7%

Miami

LOCAL BUYING

What’s Happening in Local TV?


8/27

Source: Nielsen Local Watch Report, Q1 2017.

Live TV still makes up a major portion of viewing in the top 5 DMAs.

LOCAL BUYING

Viewing Habits of Top DMAs


3:50

3:06

3:25

4:21

3:09

0:38

0:40

0:43

0:35

0:45

0:05

0:08

0:09

0:07

0:08

0:09

0:11

0:14

0:18

0:11

0:25

0:25

0:21

0:20

0:24

New York

Los Angeles

Chicago

Philadelphia

Dallas-Fort Worth

Live TV Time-Shifted TV DVD/Blu-Ray Game Console Multimedia Device

9/27

Source: Nielsen Local Watch Report, Sep’17; SVOD definition includes Hulu, Amazon Prime, Netflix.

With local viewers looking to watch their

favorite content when and where they

want it, SVOD penetration is at an all time

high across the US in major DMAs.

59%

Chicago

60%

Dallas

64%

San Francisco

63%

Los Angeles

56%

Houston

66%

Boston

60%

New York

65%

Washington,

D.C.

61%

Philadelphia

60%

Atlanta

61%

Average SVOD Penetration

Top 10 DMAs

LOCAL BUYING

Viewers are Shifting To SVOD


10/27

Source: 2017 July Cord Evolution Study, Base: Total Audience.

45%

Northeast

30%

Northeast

45%

South

26%

South

47%

Midwest

23%

Midwest

51%

West

22%

West

Utilizing TV VOD to Binge Content By

Region

Utilizing SVOD Services

to Binge Content By Region


LOCAL BUYING

The When and Where of TV Viewing Has ChangedSVOD services binge more than linear TV VOD – across all regions

11/27

Local Audience Insights


12/27

LOCAL BUYING

Did You Know?


13/27

North Platte, NE has the highest living

room consumption of all DMAs at 88%

Laredo, TX has the largest millennial

audience composition with 68%.

In the same state, you see

different content preferences.

Rick & Morty is #1 among Topeka

viewers, while people in Wichita –

Hutchinson view Bob’s Burgers

the most.

1 out of 5 viewers in Bend, OR

are viewing their favorite Hulu

content via their mobile devices

Victoria, TX is seeing the highest growth

YOY in engagement at +135%

Source: Hulu Internal Portal, Q4 2017. Growth – YOY.

Source: 2017 July Cord Evolution Study, Base: Hulu Users.

17%

Northeast

19%

South

26% 21%

Midwest West

20%

for Hulu Users

Overall

Percentage of Cord Cutters on Hulu By Region

South WestNortheast Midwest

15%

19%

18%

14%

13%

23%

26% 27%

13%

16%

20%

29%

14%

16%

20%

24%

Heaviest Heavy Medium Light Lightest Non-Viewers

LOCAL BUYING

Hulu Reaches the “Unreachables”


12%12%

14% 11%

10% 14% 9% 11%

Hulu attracts cord cutters and delivers an audience

a hard-to-reach audience.

14/27

6%

UtahTablet

71%California

Living Room

LOCAL BUYING

Streaming Habits by Device


Source: Hulu Internal Portal, Q4 2017. Based on content minutes.

15/27

Midwest viewers on Hulu are consuming their

favorite shows in the living room, while major

states like CA & NY are watching via

computer/tablet. 77% of viewing takes place

in the living room, with Midwest states driving

that engagement.

86%

WyomingLiving Room 5%

Minnesota

Tablet 13%

New York

Computer

86%

West Virginia

Living Room

12%

Georgia

Phone

LOCAL BUYING

Engagement by Genre Montana is #1 in engagement by user for Comedy, Drama, and Reality & Game Show genres. West Virginia leads the pack in

engagement for Animations & Cartoons.


Source: Hulu Internal Portal, Q4 2017. Minutes/viewer.

17 20

24

18 22

2730

23

Animation & Cartoons Comedy Drama Reality & Game Shows

Average Engagement by Hours forAll States

Best Engagement by Hours forSpecific State

+30%

+34%

+25%

+28%

West Virginia Montana Montana Montana

16/27

117Oregon

Documentaries

119Montana

Drama

113Maryland

Drama

112Washington,D.C.

Comedy

120West Virginia

Horror and

Suspense

LOCAL BUYING

Genre PerformanceGenre preferences differ by state.

Source: Hulu Internal Portal, Q4 2017. Based on content minutes.

16/27


LOCAL BUYING

Soaring Growth for Hulu Local MarketsNearly every DMA on Hulu is growing YOY. On average, we are seeing +21 YOY growth in engagement across local markets.


Source: Hulu Internal Portal, 2016 vs. 2017. Based on content minutes.

+21%

Local Market Engagement

Growth 2016 vs. 2017

Top 5 DMAs

Engagement Growth (2016 vs. 2017)

17/27

55%

Utica

+77%

North Platte

+59%

Bend

+57%

San Angelo

+135%

Victoria

Source: Scarsbough Multi Market 2016, Release 1, Base: Top 50 DMAS.

75%

of Hulu viewers are employed full/part time–

123 Index

43%

are married

57%are not married

More than

1 out of 3Hulu viewers have a

HHI $75K+

HH Size 4+:

124INDEX

HH Size 5+:

127INDEX


LOCAL BUYING

Audience ProfileUnderstanding Hulu viewers that live within the top 50 DMAs

18/27

Source: Scarborough Multi Market 2016, Release 1, Base: Top 50 DMAS.

Spent $500+ on women’s casual clothing:123 Index

Spent $500+ on men’scasual clothing:154 Index

10+ trips outside of the US in the last 12 months:141 Index

Went to a QSR

10+ times in the last 30 days: 154 Index

Plans to spend

$45K+ on a new leased vehicle in the next 12 months: 128 Index

Went to a sit down restaurant 10+ times in the last 30 days:126 Index

Uses a credit card: 113 Index uses asavings sccount: 111 Index

LOCAL BUYING

Hulu Local Viewers Are Ready To Purchase


19/27

Hulu And Local Advertising


20/27

SALES STRATEGY

How Does Hulu Sell Locally?


21/27

Targeting/Data CapabilitiesHulu leverages our unique subscriber-level

data to deliver your specific audiences.

Team StructureAll of our sellers sell locally, but we have

a specific team dedicated to local regions

across the USA

SALES STRATEGY

How Do We Target Local Markets?

25/

8


Content Based TargetingTarget through Genre

Leverage 1st Party Hulu Data with 3rd Party

data to effectively target your desired

audience based on a set of attributes.

Behavioral Segment TargetingBehavioral & Data Oriented Targeting

Wealthy

Individuals

Medical Industry

Employees

Auto Intenders

Heavy QSR

Users

Geo/Zip Code TargetingPrecise targeting at the DMA and zip

code level to deliver key audiences

* = significant at 90%

Source: Millward Brown Digital, Local Campaign 2016.

Hulu

Control

Aided Awareness

OnlineAd Awareness

Brand Favorability

Pucrchase Intent

83%

8%

27% 25%

98%*

38%*51%* 52%*

LOCAL BUYING

Hulu Ads WorkThis local campaign on Hulu produced lists in key brand metrics.


24/27

1.6MMN E A R LY

1MM 59%

Hulu Total Reach

in 12 Markets

Hulu Incremental

Reach

% of Hulu’s Total Reach

Exclusive to Hulu

NIELSEN LOCAL REACH

Total And Incremental ReachFor an advertiser that targets to specific DMAs across both Hulu and TV, Hulu ran an Extended Reach Study to measure

the reach of the campaign in those DMAs. The study measured the campaign Reach and Frequency across 12 major

markets.


25/27

TOP 5 REASONS

Hulu Can Help Advertisers Reach Key Consumers

1

Local TV ratings are declining

at a steady pace, and it’s

becoming harder to find the

right audiences on TV. Both

A18-34 and A18-49 demos

are shifting away from live

TV in the top 10 DMAs.

5

Local campaigns on

Hulu have increased

brand awareness and

showcased lifts in key

brand attributes.

2

With the shift happening

in local DMAs, viewers

are consuming their

favorite

content on SVOD

platforms, and choosing to

binge watch.

3

Hulu has the right

capabilities in order to

deliver local market

consumers, along with

providing local advertisers

the ability

to reach light TV viewers

and cord cutters.

4

Top local categories on

TV are also top on

Hulu,

reaching an audience

ready to spend.


22/27

Thank You


29/27

Hulu Local - Borrell Associates · 2018-03-16 · Source: Nielsen Local Watch Report, Sep’17;...

Documents

Transcript of Hulu Local - Borrell Associates · 2018-03-16 · Source: Nielsen Local Watch Report, Sep’17;...