Posted December 16, 2008 4:50 pm by with 12 comments

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HuluIs it time for Hulu to hit the panic button? First their November traffic numbers were down almost 11% from October, and now it appears that advertisers are moving on, too.

According to All Things Digital, although Hulu claims their revenue numbers are still on the rise, they suddenly have found themselves with their advertising space freeing up. Back in August, Hulu reported that their advertising space had sold out. This is no longer the case.

What’s the cause of this new advertising space? Are advertisers pulling out or is it a result from visitors watching more videos, giving Hulu more opportunities to show more ads? Whichever the case, All Things Digital author Peter Kafka thinks this is no time to panic.

It’s also hard to read much into this because the Web video ad market has become a total crap shoot. Hulu says sales for the fourth quarter are still up over last year, and online execs at CBS (CBS) and at Disney’s (DIS) ABC say the same thing. But they have little idea what to expect for next year. Which makes them just like everyone else selling online ads.

  • I’m sure the election had a ton to do with the huge number of views / visitors (Tina Fey SNL) and their ad inventory (I saw TONS of Obama ads throughout October). I’m not surprised this have dropped slightly,… just like the Huffington Post and Twitter. It’ll grow. Just give it time.

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  • Fact is that YouTube dominates the social online video market. Among the big heavyweights the music industry has now come to embrace YouTube as a great music video outlet. And if YouTube plays their cards right they can in the long term outrun Hulu. They need to create effective advertising methods and with the help of hard data speed up their already slowly forming deals with some of the big media distributors.

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  • I agree with Dave. It definitely had to do with the presidential election. A ton of money was used for advertising.

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  • “they have little idea what to expect for next year”

    That’s all part of the fun!!

  • Political ads is just seasonal income resource, but it spent lot of money and it’s work as well, I think.

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  • Certtainly , Political ads are not for always but they do have lots of earning during the season.

  • Also, the economy has caused many advertising cut backs.

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  • If you panicked every time you lost an advertiser or two you’d go crazy. Good thing is they are making money, a lot, even when times are bad. More media “fear” headlines. You have to look at all headlines with some balance… a grain of salt and a corn of pepper.

  • Considering YouTube’s previous dominance and issues with epople uploading Network shows and clips I would have to consider Hulu a success so far.

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  • They should weather the storm. As more people make cuts in their personal budgets things like DVR are going to go and services like Hulu will become of interest. What they need to do is work to make more partnerships with devices (or offer their own device) to easily get the average consumer using on the big screen.

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  • I agree with Dave. It definitely had to do with the presidential election. A ton of money was used for advertising.

  • Economy cricis is the main factor.