How can Hulu.com get nearly 50% higher CPM than broadcast networks?

Here are my three summarized key points from reading “Note on Marketing Strategy” and “Hulu: An Evil Plot to Destroy the World?”
  • Positioning statement for Hulu.com:
    Hulu.com is the premier online aggregator of premium video content among all online aggregates of premium video content because of its innovative service and many users.
    (the positioning statement form p. 4 in Note on Marketing Strategy combined with p. 1 in the Hulu-case)
  • How can Hulu.com in average get an CPM between $40 and $50 (p. 12 Hulu-case) when the major broadcast networks gets an CPM between $15 and $25 (p. 4 Hulu-case)?
    With their allowance for advertisers to “target specific genres, demographic groups, geographies, day-parts, or behavior to ‘increase relevancy to users and increase effeciency for advertisers’” (p. 12 Hulu-case) they where able to move classic tv-advertising to a more direct form. It isn’t as targeted as a direct mail would be, but they are moving towards it (p. 12, Note on Marketing Strategy).
  • The last thing I want to mention is how Hulu.com kept aware of their Life Cycle Management (as explained on p. 8, Note on Marketing Strategy). I can’t tell if they have made the right decision to prevent a loss to an upcoming competitor-TV Everywhere, but they reacted. And we are still waiting for TV Everywhere introductions to the market though they have talked about it for nearly two years.

Leave a Reply