Viewer-Selected Ads on Hulu Perform Better Than Random Ones

Regular users of premium video streaming site Hulu are by now familiar with the drill: After clicking the play button on a television show or movie, you’re given a choice of two or three advertisements to watch. You make your selection and begin watching the latest episode of “Modern Family,” which is briefly interrupted only with the ad of your choice.

For something that may seem like a relatively minor detail in the course of one’s day, this Ad Swap functionality is Hulu’s bold, experimental bet on the future of television advertising. The idea is simple: by giving viewers some say in what ads are displayed, you can show them more relevant messages. For advertisers, the value in more effectively targeting ads toward the people most likely be interested in the company’s product. Everybody wins.