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Hulu - The Future of Ad Revenue on the Web

3/15/2008

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I found the linked article below interesting. It represents a way that I’ve thought for a while you actually could make good money off of advertising on the web – if the consumer buys into it. In this model you have to watch advertising, but the user picks the types of ads he’ll see. Ads are not bad, you just don’t want to watch the ones not relevant or entertaining to you. And it also mentions research that showed higher ad retention when watching at a PC (2 foot experience, immersed) vs 10 foot TV experience. It makes sense. So I get to watch funny Apple ads that I enjoy anyway, and get my content for free. And the advertisers probably get a much higher ROI than they get on TV today because I opted in.

The full article is here:
http://www.mercurynews.com//ci_8556838?IADID=Search-www.mercurynews.com-www.mercurynews.com

But here are some key quotes:
  • Hulu users tend to be more engaged with what's on the screen than the average television viewer, in part because they usually sit closer to the screen and have fewer distractions. As a result, he said, users tend to come away from watching Hulu with more of an impression of the commercials than do television viewers....."It's the two-foot experience as opposed to the 10-foot experience,"
  • It is experimenting with allowing users to choose which ads to view, and with showing movie trailers upfront in exchange for shows without commercial breaks.
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    I'm married, and the father of young boy/girl twins.  I love living in Silicon Valley, not only for the great weather and outdoor lifestyle, but because I'm surrounded by companies and people that share my passion for technology.

    From time to time I like to share my thoughts about  business strategies, new technologies, new products, and other observations.  I try to keep it light, and sometimes a little funny.

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