Hulu's ad revenue rose 18% in first quarter, SMI says

Hulu is continuing the slow and steady pace for updates to the device compatibility list for its new UI and live TV service, this time adding 2017 Samsung smart TVs to the list.
Hulu also said that 78% of Hulu viewing happens in the living room, on a connected TV. (Hulu)

Along with moving past 20 million subscribers, Hulu has also been growing its advertising revenue during the first quarter, according to Standard Media Index.

SMI said that according to its data, Hulu ad revenue rose 18% year over year during the first quarter.

During its upfronts presentation on Wednesday, Hulu didn’t reveal any numbers regarding its advertising revenue, but it did divulge a whole lot of data regarding its service. Hulu said that it grew engagement by 60% and that it has added more U.S. subscribers than any other pay TV brand over the past three quarters. It also said that it grew ad-supported subscriptions by 40% year over year.

Hulu also claimed that its ad-supported experience is somewhat superior to what consumers encounter on traditional linear TV. The company said that research showed that for advertisers on Hulu, 50% of the audience they reach on Hulu never saw their ad on traditional TV. The company also said that its ad load is less than half that of linear TV.

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Hulu also said that 78% of Hulu viewing happens in the living room, on a connected TV, and that Hulu viewers watch on an average of four devices throughout the day. The company also said that two-thirds of Hulu viewers watch with family or friends at least once a week and that viewers who stream Hulu with Live TV spend more time watching TV per day than the average linear TV viewer.

Details about Hulu’s ad engagement and viewership arrived amid announcements that Hulu is adding dynamic ad insertion to its live streaming TV service. The company also said that it will begin offering ad-supported downloads of content for offline viewing.

“Our launch of the industry’s first ad-supported downloadable content experience is yet another example of how Hulu is innovating viewer-first ad solutions to drive powerful results for brands,” said Peter Naylor, senior vice president of advertising sales at Hulu, in a statement. “With downloadable content, we're offering brands more ways to connect with engaged viewers who love the experience of watching television, wherever they may be.”