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The growth of free, ad-supported television (FAST) in recent years offers new audience reach for advertisers, marketers, and publishers alike. It’s time for broadcasters and content developers, i.e. “publishers” to jump onboard “the new cable” if they’re not already: a recent report from TVREV says that by 2025, ad spend on FAST will surpass that of cable, broadcast, and subscription video on-demand (SVOD).
With an estimated 1,400 channels being launched in the U.S. in the last three years alone, FAST platforms offer an expedited path to market for publishers who wish to expand their video content. It’s a win-win: FAST offerings allow publishers to monetize their content while providing viewers with a live linear experience.
So, what do interested broadcasters and content creators need to know prior to diving in headfirst?
Here are the ways in which publishers can capitalize on the countless benefits that FAST channels offer and overcome common roadblocks.
1. Creating and Successfully Monetizing FAST Channels
Video content providers are continuously looking to connect with audiences and further monetize owned assets. Launching a FAST channel is a terrific way to do this.
According to Statista, 92% of US households are now reachable with CTV advertising. In other words, publishers looking to enhance digital engagement should consider the direct-to-consumer digital reach that FAST offerings provide. What’s more: launching a FAST channel is a simple and low-risk strategy for video content providers that already have a SVOD library readily available. Thus far, FAST has appeared to offer a win-win situation for publishers, consumers, and content owners alike. However, there are a few foundational elements publishers must become acquainted with before creating a FAST channel that will reach its maximum level of success.
As the market evolves, FAST channels are providing publishers with new opportunities to generate revenue and drive subscriptions for video service providers. However, in order to begin accumulating ad dollars, the content must be high-quality, and targeted advertising is a must-have. The most privacy-forward way to ensure advertising is targeted is to leverage first-party data, which is incredibly important for monetizing FAST channels.
Content-related data for FAST channels is limited, which explains why today’s channels are often not fully monetized. Video service providers can improve FAST channel monetization by utilizing advanced metadata, such as scene information, in order to enhance monetization and better target viewers across multiple end-user platforms.
2. Distributing Channels Across Multiple End-User Platforms
Another way for publishers to ensure FAST channels (and ads) maximize their reach is to ensure that the content is searchable across platforms. However, this can also come with its own downsides.
On one hand, building a channel with top-tier content and well-placed ads won’t have the intended viewership and revenue effects if audiences aren’t easily able to access it. Indeed, seamless content discovery is one of the largest challenges seen with FAST channels. Universal search and discovery on CTV operating systems, such as Roku, Samsung TV Plus, etc., will help broaden a FAST channel’s audience and therefore boost ad revenue. Most CTV operating systems today in the US limit the number of FAST channels to 250-300, in part, to make content discoverable versus hosting an endless number of channels.
On the other hand, a potential hurdle to consider when initially building and launching a FAST channel is control over ad inventory. Publishers who wish to prioritize remaining in control may find it more beneficial to serve content and accompanying ads over their own OTT platforms as opposed to a CTV operating system. This way, the ad experience can be internally customized and publishers can leverage the first-party data collected. However, it will be more difficult to scale audiences this way.
While both sides of this fork in the road have their advantages, FAST platforms will need to increasingly collaborate with one another in order to help make content more reachable, resulting in higher viewership and ad revenue for all.
3. Building Audience Reach and Growing Ad Revenue
In order for publishers to successfully hop on the bandwagon – and as FAST channels become more and more mainstream – growing amounts of consumer data can be used to bring increasingly targeted ads to viewers. In fact, 67% of consumers surveyed actually prefer an ad-supported alternative to paid SVOD services, citing the preference for streaming, but not for current subscription prices. And, according to DigitalTV Europe, targeted ads bring in more revenue – about five to 10 times more – than non-targeted ads.
Increasing interest from consumers in FAST is already creating a domino effect: interested consumers attract interested video providers, which in turn attracts advertisers, pushing FAST channels further toward the forefront of streaming and paving the way for more investments from advertisers and a more relevant, engaging experience for the consumer.
As FAST continues to grow, publishers should consider creating and monetizing a channel of their own – especially with ad spend on FAST predicted to outgrow that of cable, broadcast, and SVOD in the coming years. Equipped with insights around consumer behavior and tips for pulling in advertisers, publishers should feel comfortable jumping onto the “new cable” train and riding off into the sunset.
Greg Smith
GM of North America, Aniview
