Hulu Local Julie DeTraglia

Transcription

1 Hulu Local Julie DeTraglia

2 LOCAL BUYING ON HULU Table of Contents What is Hulu? Local TV Landscape Trends Hulu Local Audience Insights Hulu Local & Advertising 2/27

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4 What Is Hulu? 3/27

5 THE BEST OF TV MEETS THE BEST OF DIGITAL Live & On Demand 4/27

6 THE BEST OF TV MEETS THE BEST OF DIGITAL Live & On Demand 5/27

7 THE BEST OF TV MEETS THE BEST OF DIGITAL Never Miss A Moment 6/27

8 LOCAL BUYING Optimal Ad Environment Local 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 AD Viewable Ads Industry-Leading No Skippable Ads DVR-Proof 100% Ad Completion Only pay for ads Premium Long Form Content Category Separation Single ad per Fair Rotation of Ads Hulu offers fair Viewability viewed to The Best of Last category, per pod and equal rotation of completion Night s TV, plus national and local ads Exclusives & Originals 8/27

9 Landscape Trends 7/27

10 LOCAL BUYING What s Happening in Local TV? Live TV ratings continue to decline. -35% -41% -19% Seattle -2% San Francisco -3% Denver -12% Phoenix -13% Dallas -4% Chicago -6% New York -1% Philadelphia -14% Atlanta -7% Miami Primetime Rating Decline from 2011 to 2016 Top 10 DMAs P18-49 Demo Primetime Rating Decline -11% from 2011 to 2016 Top 10 DMAs P18-34 Demo Houston Change in Live TV Usage Q1 16 vs. Q1 17 8/27 Source: Nielsen Program Ratings, Broadcast/Cable Prime, excludes Sustainers, Q VS. Q4 2016, Market Break Top 10 Markets. Right - Nielsen Local Watch Report, Q1 16/Q1 17; A25-54, Average Time Spent per Day

11 LOCAL BUYING Viewing Habits of Top DMAs Live TV still makes up a major portion of viewing in the top 5 DMAs. Live TV Time-Shifted TV DVD/Blu-Ray Game Console Multimedia Device Dallas-Fort Worth 3:09 0:45 0:080:11 0:24 Philadelphia 4:21 0:35 0:07 0:18 0:20 Chicago 3:25 0:43 0:09 0:14 0:21 Los Angeles 3:06 0:40 0:080:11 0:25 New York 3:50 0:38 0:05 0:09 0:25 Source: Nielsen Local Watch Report, Q /27

12 LOCAL BUYING Viewers are Shifting To SVOD 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 61% 66% Boston 60% New York 64% San Francisco 63% Los Angeles 56% Houston Average SVOD Penetration Top 10 DMAs 65% Washington, D.C. 61% Philadelphia 60% Atlanta Source: Nielsen Local Watch Report, Sep 17; SVOD definition includes Hulu, Amazon Prime, Netflix. 10/27

13 LOCAL BUYING The When and Where of TV Viewing Has Changed SVOD services binge more than linear TV VOD across all regions Utilizing SVOD Services to Binge Content By Region 45% Northeast 45% South 47% Midwest 51% West Utilizing TV VOD to Binge Content By Region 30% Northeast 26% South 23% Midwest 22% West Source: 2017 July Cord Evolution Study, Base: Total Audience. 11/27

14 Local Audience Insights 12/27

15 LOCAL BUYING Did You Know? North Platte, NE has the highest living room consumption of all DMAs at 88% Laredo, TX has the largest millennial audience composition with 68%. Victoria, TX is seeing the highest growth YOY in engagement at +135% 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 Source: Hulu Internal Portal, Q Growth YOY. 13/27

16 LOCAL BUYING Hulu Reaches the Unreachables Hulu attracts cord cutters and delivers an audience a hard-to-reach audience. 26% 24% 27% 29% Percentage of Cord Cutters on Hulu By Region 17% Northeast 19% South 26% 21% Midwest West 20% for Hulu Users Overall 18% 20% 23% 20% 19% 16% 13% 16% 15% 14% 14% 13% 12% 12% 14% 11% 10% 14% 9% 11% Northeast South Midwest West Heaviest Heavy Medium Light Lightest Non-Viewers Source: 2017 July Cord Evolution Study, Base: Hulu Users. 14/27

17 LOCAL BUYING Streaming Habits by Device 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. 6% Utah Tablet 86% Wyoming Living Room 5% Minnesota Tablet 13% New York Computer 71% California Living Room 86% West Virginia Living Room 12% Georgia Phone 15/27 Source: Hulu Internal Portal, Q Based on content minutes.

18 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. +34% +25% Average Engagement by Hours for All States +30% +28% Best Engagement by Hours for Specific State Animation & Cartoons Comedy Drama Reality & Game Shows West Virginia Montana Montana Montana 16/27 Source: Hulu Internal Portal, Q Minutes/viewer.

19 LOCAL BUYING Genre Performance Genre preferences differ by state. 117 Oregon Documentaries 119 Montana Drama 113 Maryland Drama 112 Washington,D.C. Comedy 120 West Virginia Horror and Suspense 16/27 Source: Hulu Internal Portal, Q Based on content minutes.

20 LOCAL BUYING Soaring Growth for Hulu Local Markets Nearly every DMA on Hulu is growing YOY. On average, we are seeing +21 YOY growth in engagement across local markets. Top 5 DMAs Engagement Growth (2016 vs. 2017) Local Market Engagement Growth 2016 vs % Bend 55% Utica +21% +77% North Platte +57% San Angelo +135% Victoria 17/27 Source: Hulu Internal Portal, 2016 vs Based on content minutes.

21 LOCAL BUYING Audience Profile Understanding Hulu viewers that live within the top 50 DMAs HH Size 4+: 124INDEX HH Size 5+: 127INDEX More than 1 out of 3 Hulu viewers have a HHI $75K+ 75% of Hulu viewers are employed full/part time 123 Index 43% are married 57% are not married Source: Scarsbough Multi Market 2016, Release 1, Base: Top 50 DMAS. 18/27

22 LOCAL BUYING Hulu Local Viewers Are Ready To Purchase Spent $500+ on women s casual clothing:123 Index Spent $500+ on men s casual 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 a savings sccount: 111 Index Source: Scarborough Multi Market 2016, Release 1, Base: Top 50 DMAS. 19/27

23 Hulu And Local Advertising 20/27

24 SALES STRATEGY How Does Hulu Sell Locally? Targeting/Data Capabilities Hulu leverages our unique subscriber-level data to deliver your specific audiences. Team Structure All of our sellers sell locally, but we have a specific team dedicated to local regions across the USA 21/27

25 SALES STRATEGY How Do We Target Local Markets? Geo/Zip Code Targeting Precise targeting at the DMA and zip code level to deliver key audiences Content Based Targeting Target through Genre Behavioral Segment Targeting Behavioral & Data Oriented Targeting Leverage 1 st Party Hulu Data with 3 rd Party data to effectively target your desired audience based on a set of attributes. Wealthy Individuals Auto Intenders Medical Industry Employees Heavy QSR Users 25/ 8

26 LOCAL BUYING Hulu Ads Work This local campaign on Hulu produced lists in key brand metrics. 98%* 83% 38%* 51%* 52%* 27% 25% 8% Control Hulu Aided Awareness Online Ad Awareness Brand Favorability Pucrchase Intent * = significant at 90% 24/27 Source: Millward Brown Digital, Local Campaign 2016.

27 NIELSEN LOCAL REACH Total And Incremental Reach For 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. Hulu Total Reach in 12 Markets Hulu Incremental Reach % of Hulu s Total Reach Exclusive to Hulu 1.6MM N E A R LY 1MM 59% 25/27

28 TOP 5 REASONS Hulu Can Help Advertisers Reach Key Consumers Local TV ratings are declining With the shift happening Hulu has the right Top local categories on Local campaigns on at a steady pace, and it s in local DMAs, viewers capabilities in order to TV are also top on Hulu have increased becoming harder to find the are consuming their deliver local market Hulu, brand awareness and right audiences on TV. Both favorite consumers, along with reaching an audience showcased lifts in key A18-34 and A18-49 demos content on SVOD providing local advertisers ready to spend. brand attributes. are shifting away from live platforms, and choosing to the ability TV in the top 10 DMAs. binge watch. to reach light TV viewers and cord cutters. 22/27

29 Thank You 29/27