Hulu to Start Running Ads During Pause Breaks This Spring

A week after Hulu announced plans for a cheaper subscription option, the streamer announced a new way to get advertisements in front of consumers. Starting this spring, users will see ads on the screen when they pause their videos.

The first companies to sign on for Hulu’s “pause ads” will be Coca-Cola and Procter & Gamble’s Charmin toilet tissue brand, reports Variety. The static ads will only run for a few months starting in the second quarter of 2019 to see how consumers react to it.

“While TV viewing behavior has changed, TV advertising really has not. We have largely been watching the same commercial breaks from the second that TV advertising began,” says Jeremy Helfand, vice president and head of advertising platforms for Hulu, told Variety. “There’s a real opportunity to change that.”

“Charmin is excited to be an official sponsor of the Hulu ‘Pause Ad’ because we know that brands need to reach their audiences at the right time with the right message. When someone pauses their program, it’s presumably because they are ‘going’ – it’s an extremely relevant place for our brand,” Janette Yauch, Charmin’s brand director, added. “This is a unique and unexpected ad experience that can deliver a message in a way that is non-disruptive and user-initiated, and we’re glad to be a part of this new innovation.”

The ads will not immediately appear on the screen. Helfand explained that they will pop up five seconds after the user hits the pause button. They will be static message with a short slogan and a small image, as well as a translucent background so the paused image is still visible. Helfand compared it to a billboard drivers see for just a short amount of time while on the road.

Hulu’s announcement came a week after it announced a price cut for its basic $5.99 plan, a $2 cut from the usual $7.99, which includes commercials. Earlier last month, Netflix announced a $1 increase ot its basic $7.99 plan, and a $2 increase to the standard $12.99 and premium $15.99 plans.

While other streamers would have its users getting the pitchforks ready if ads were introduced, Hulu has the leeway to test different advertising methods because its users are already used to seeing commercials. Hulu’s $5.99 plan includes commercials, while a commercial-free plan costs $11.99 a month. Hulu also offers a combo subscription with Spotify for $12.99 a month.

Hulu is also in a very precarious position lately. Disney, Comcast, AT&T and 21st Century Fox are investors in Hulu, and they all plan on launching their own streaming services. 21st Century FOX’s stake will transfer over to Disney once Disney’s purchase of FOX assets is finalized.

Hulu’s original programming include Runaways, The Handmaid’s Tale, Castle Rock and the upcoming Looking for Alaksa with Kristine Froseth and Charlie Plummer.