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Hulu Private Marketplace Gives Programmatic Advertisers Choice and Control

“The invite-only auction, which is I would say our new shiny toy that’s getting wrapped in the PMP, provides us the opportunity for a variable floor price,” says Doug Fleming, Head of AdvancedTV at Hulu. “So now the advertiser pays what they deem appropriate for that specific audience. It gives them more choice and control. When we look at our offering that’s what it’s about. It’s the genesis behind us rolling out a programmatic offering. Advertisers want choice and control and we want to allow them to have that.”

Doug Fleming, Head of AdvancedTV at Hulu, discussed Hulu’s embrace of programmatic advertising via their new private marketplace in an interview with BeetTV:

March Towards Automation

Since the inception of programmatic advertising, the goal always was that it was on equal footing with direct sold. We didn’t separate it. This wasn’t a remnant solution. As we’ve grown to 25 million subscribers we now have enough inventory and enough access that we have decided to create a team under me to go out and affect those agency trading desks and those folks that have decided to bring programmatic buying in-house.

When we look at the landscape you can see this march towards automation and we’re not going to get in the way of that. We’re going to embrace that and we’re going to do it  in a very private curtailed way. There is no concept of a remnant provider reselling our inventory. Everyone has to be blessed and driven through the Hulu process.

Hulu Works with Telaria But Owns the Delivery Logic

On the demand side, it’s a mix of everyone. There is client direct, there are agency trading desks, and then the DSPs are good partners too. In each of those scenarios, we need and identify the brands before they come in so that they are attributed to the appropriate seller on our side. There’s no semblance of a DSP just hanging on and reselling in an always-on situation. We actually curate that environment and make sure that all of our t’s are crossed and i’s are dotted so that we know who the advertiser is coming in and we can manage that.

What’s unique about our work with Telaria is really that the Hulu ad server owns the delivery logic. So in this case what separated Telaria was that they enabled us to do things the way we wanted to do them. They kind of powered us. We have very smart people in place who oversee these positions and they came in and worked with us to develop the appropriate technology for us to go to market the way we wanted to go to market.

Hulu Private Marketplace Gives Advertisers Choice and Control

What it’s given us is the ability to take all advertising in. We can category block appropriately, so people maintain their category exclusivity within pods. We have the ability to take multiple advertisers and a single deal ID and manage all that blocking. It also allows us to open up to the programmatic marketplace a full suite of products. We’ve always run a private marketplace. However, in the past, we had automated guaranteed and unreserved fixed. Those are fixed price deal types. Unreserved gave you the ability to make a data-driven decision and if you chose to take that impression you paid the fixed price that we agreed on.

The invite-only auction, which is I would say our new shiny toy that’s getting wrapped in the PMP, provides us the opportunity for a variable floor price. So now the advertiser pays what they deem appropriate for that specific audience. It gives them more choice and control. When we look at our offering that’s what it’s about. It’s the genesis behind us rolling out a programmatic offering. Advertisers want choice and control and we want to allow them to have that.

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