Are they watching the two-minute spots or are they tuning out for two minutes and then coming back to watch the shows uninterrupted? How is engagement being measured?

As a user of Hulu, I can tell you that I do actually watch the long ad. I can also tell you that it's always been one minute for me, not two. I do much prefer the single long ad over multiple shorter ads. In addition to being less time spent watching ads (one minute of a single ad versus one-and-a-half to two minutes of multiple ads), it means I can watch the show without major interruption (there are still short pauses of black screens when the ads would normally play... technical glitch that they need to work on). I've long been an advocate of the more European-style TV ad system -- uninterrupted shows with blocks of ads in between.

David poses a great question. While this form of advertising is still more effective than most, viewer engagement is still going to be an x factor.

I tend to tune out for the 1-2 minutes that and ad is running. The onus is on the advertiser to create an ad is clever and creative and that will hold the attention of an audience for its entirety. Otherwise, its still throwing money in the wind...

not sure that this saying that people want to view the 2 minute long form format, it's just saying that people don't want to have their viewing interrupted. statistics can be made to reach any conclusion. ask viewers if they'd prefer no commercials at all and see what they say ;) I know I know, it pays for the content, but I'm just sayin'... :)

Does the user get to pick the ad from a variety of categories? That would increase the likelihood that they actually watch it. If it's a movie trailer I picked maybe I stick out the 2 mins, otherwise I am jumping to another Web page and coming back when my chosen show comes on.

I've opted for the single longer ad every time. And this Thanksgiving, I'm grateful for online video players with volume controls! And even more thankful for ads that don't BLAST the sound levels (compared to the content)

I always go for the 2 min ad. Of course 2 min is about the right amount of time for a trip to the restroom, or fetching a beer from the fridge.

Also need to agree with Richard that the ad volume is one of my fav. parts of the Hulu model. I HATE comcast advertising sound volume.

Also (and this might be random happenstance) but last week I was given a couple of ads that were part of a series. That kept my attention. (although not enough for me to remember what product was being advertised) However I think that advertising is going to have to offer it's own content in addition to that which it subsidizes, and series adds could ensure that people actually watch them.

It's a thought.

not to burst Hulu's bubble, I love the service, but people opt-in and then go read some article they are working on in another tab, and then move over to their blessed uninterupted viewing of 30 rock (or whatever).

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