Recent reports have surfaced that Hulu’s IPO could come as early as this fall. Hulu, which started as a rival to free video website YouTube, has taken huge strides since inception and is ready for the next step. How will this IPO affect the success of the online video business, especially video content company Netflix? 

Most people first heard of Hulu when Alec Baldwin introduced the brand during the Super Bowl in 2009. Hulu launched in 2007 as a joint venture of NBC Universal, News Corp, and ABC Inc., with some funding from the Providence Equity Partners. Hulu has been building a constant revenue stream, taking in more than $100 million in reported revenue in 2009, and has already crossed that plateau this year. It has operated as a free, commercial-supported website that streams videos of TV shows and movies. Its main revenue stream comes from advertising, with the upcoming launch of Hulu Plus looking to gain additional revenue. 

What does it mean for Hulu?
It will initially alleviate the financial obligations of the original partners NBC, ABC, and Fox, who will begin to have less involvement with the platform. Hulu will also face greater competition. Instead of simply rivaling online video players such as YouTube, it will be forced to go toe-to-toe with the websites of the aforementioned media titans and Netflix. By going public, offering a paid subscription, and streaming video, their core business is looking very similar to Netflix.  In all likelihood, new subscribers will demand an increased number of television shows and movies – similar to what Netflix is experiencing with their subscribers. The big difference between the two is advertising. Netflix offers commercial-free streaming, while Hulu has built its business on advertising.

What does it mean for advertisers? 
Hulu is an advertiser’s best friend, as it requires the user to watch advertisements. In June 2010, it outranked all other video content websites in terms of Ads per US Viewer Delivered, delivering 24.2 ads per viewer in June. It's the combination of fresh video content that is convenient for the user and the offering advertising space that makes Hulu very appealing.

As Hulu Plus adds subscribers, the advertising space within that environment could turn more competitive. Hulu Plus could rival Netflix’s streaming capability and drive up competition for their advertising space. Locking up this content could also lead to higher CPMs for advertisers. Hulu Plus is offering its introductory package at $1 more than Netflix’s basic package.

The tentative IPO is valued around $2 billion, which would be a huge boost to the IPO market that has endured its two worst years since the mid-70s. This IPO also legitimizes what marketing and web professionals have been saying all along: that people are spending more time online and getting their video content delivered to them online. It also helps to open the floodgates for more web companies such as Facebook and Twitter who are currently household names but are struggling to build a revenue stream. The impact of this pending IPO is unpredictable, but it should be exciting to watch. 

Senior Prom, everyone remembers how important it was during high school. Wherever you grew up, everyone wants to have a prom to remember. The age-old questions of "Who are you taking?", "Which band is going to play?", and "How are you going to get there?" live in the minds of every high school senior when they think about prom. Dell, Microsoft and our agency teamed up to create a contest that gave one lucky high school a prom to remember.

The Contest
The Dell SuperProm Contest allowed one high school senior to win a tricked-out prom for their high school. For six weeks, high school seniors submitted 30-second videos about why their school deserved a SuperProm. Dell Lounge users voted on the videos, and when the votes were tallied a winner was chosen.

How Successful Was the Contest?
The Dell SuperProm contest was primarily conducted on a microsite, but also used Facebook & Twitter to announce updates about the contest as it was underway.

1. Engagement and Creativity. Contest entrants submitted their 30-second videos to the microsite, and the only requirement was to showcase why your school deserves a SuperProm. Allowing users to submit and vote on their own videos was an opportunity for them to showcase their creativity.

2. Incorporation of Social Media. The microsite was the main hub for the contest, which hosted the videos and votes, but the contest also posted updates on Facebook and Twitter. Alerting Facebook and Twitter users extended the reach of the contest into social networking, thus encouraging microsite visitors who may not have heard about the contest otherwise.

3. What About the Numbers? The six-week contest amassed some pretty eye-opening numbers, which proved the engagement and excitement the contest brought.

• Visitors to the site: 216,205
• Total pageviews: 1,600,811
• Facebook likes grew by 17%
• Twitter followers grew by 4%

4. School Spirit. The contest was centered on high school students talking about where they are from and why their school deserves a dream prom. The topic of prom excites every high school student, and the possibility of becoming the “coolest kid in school” is a great reason to submit a video.

5. A Contest for Students, Run by Students. High school students submitted their videos on the microsite and also voted on the videos they thought were most deserving. The idea of allowing the users to decide on the winner required engagement and commitment.

The End Result
Every student wants a prom to remember and incorporating multiple platforms for a contest increases access across many different channels. The winning school, Cupertino High School, won a prom that included musical guests Common and Lil Jon. Their winning video centered on a project named Kenya Dream. In 2007, while freshmen, the senior class at Cupertino High School adopted a school in Kenya and had a goal of raising $100,000 to better the lives of the students.

The Dell SuperProm contest was a win-win situation, as it spread the news of Kenya Dream & won a dream prom for the students. The Dell SuperProm touched the hearts of many students and was truly a contest to remember.

It seems like every time I log in to Twitter I see more people using location-based services such as Foursquare or Gowalla. Foursquare and Gowalla have 1.3 million and 150,000 users respectively, with these numbers increasing daily.

These new services have an air of intrigue around them with many consumers asking what is the point. On the flip side, as an interactive agency we have to ask ourselves, “Why are programs like these becoming popular, and what does it mean for clients?”

What is Foursquare?
Foursquare was developed as a location-based social networking service that allows users to “check in” at certain locations. This service has quickly turned into a game that allows users to earn badges for frequently checking in, sync with their Twitter and Facebook accounts to give a shout out to their current location, and on top of that if you “check in” the most at a specific location you become mayor of it.

So why are they popular?
People join social networks because they want to share their daily thoughts, plans and activities with the click of a button. Location-based networks, like Foursquare, allow consumers to share their current location and what they think about it.  Users can now share reviews and thoughts about businesses in real time via a social network. Foursquare even allows you to sync your Twitter and Facebook accounts to update your status whenever you check in to a location. This functionality of syncing across all social networks could be the future.

What does it mean for businesses?
Consumers will be engaging with businesses without moderation. Upon first glance, it seems like a great thing for businesses, as users will be competing to “check in” the most at a certain place. With users competing to become the mayor of a location, it can only mean positive word-of-mouth reviews, so to speak. It also presents opportunities for businesses to offer promotions like “check in at our business in the next four hours and get a free item.”

What does it mean for advertisers?
With location-based social services being relatively new, it is hard to determine what their impact will be on the advertising industry. Agencies could start by helping interject typical marketing strategies such as offering discounts, certain privileges or prizes to users who check in most often or during particular time frames, etc.

Will it spread to other networks? 

Recently, Yelp added the “check in” feature with Facebook not far behind. Twitter also offers a popular location-based feature. Yahoo! has considered acquiring Foursquare for $100 million. The idea of location-based social networking is obviously gaining popularity, and will certainly spread to other networks. Now, will Foursquare be forgotten after the big guys such as Facebook and Google master it and spread it to their huge user base?