hulu local - borrell associates · 2018-03-16 · source: nielsen local watch report, sep’17;...
TRANSCRIPT
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
Local Buying on Hulu
5/27
THE BEST OF TV MEETS THE BEST OF DIGITAL
Live & On Demand
Local Buying on Hulu
6/27
THE BEST OF TV MEETS THE BEST OF DIGITAL
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
Local Buying on Hulu
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?
Local Buying on Hulu
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
Local Buying on Hulu
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
Local Buying on Hulu
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 on Hulu
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
Local Buying on Hulu
12/27
LOCAL BUYING
Did You Know?
Local Buying on Hulu
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”
Local Buying on Hulu
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
Local Buying on Hulu
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.
Local Buying on Hulu
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 on Hulu
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.
Local Buying on Hulu
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 on Hulu
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
Local Buying on Hulu
19/27
Hulu And Local Advertising
Local Buying on Hulu
20/27
SALES STRATEGY
How Does Hulu Sell Locally?
Local Buying on Hulu
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
Local Buying on Hulu
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.
Local Buying on Hulu
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.
Local Buying on Hulu
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.
Local Buying on Hulu
22/27
Thank You
Local Buying on Hulu
29/27