Hulu Accounts For Almost 20% Of Online Video Revenue


According to figures released by the IAB this morning and analyst estimates, Hulu now accounts for about 20% of total online ad revenue. 

This highlights how advertisers have clearly chosen professional video content over user-generated content as to where they want to spend their dollars.

  • Per IAB, online video ad revenue increased 38% to $477 million in the first half 2009 while overall online ad revenue decreased 5.3%.
  • The mid-range of 1H09 revenue estimates for Hulu ($75 million) by analysts and press suggests that Hulu accounts for just under 20% of online video ad revenue.  At the same time, Hulu only accounts for about 2% of total online video audience, according to the latest comScore figures. 

While advertisers gravitating toward professional content is encouraging for sites like Hulu, forecasters were too bullish about online video advertising’s potential back when online video emerged as a high growth industry several years ago. 

For example, back in 2006 eMarketer predicted that online video advertising would grow to $3 billion by 2010.  Assuming 2H09 online video advertising does not grow remarkably on a sequential basis over 1H09, online video ad revenue would have to increase by 300% to reach eMarketer’s forecast.  This seems unlikely.

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