Free Ad-Supported TV (FAST) is quickly becoming a popular alternative to traditional cable and streaming subscriptions for consumers.
The appeal is hard to deny. The choice fatigue associated with VOD steaming services like Netflix and Hulu is real. We used to say "a thousand channels and nothing on TV." Now it's more like "10,000 videos and nothing to stream."
On the other hand, consumers are tired of shelling out hundreds of dollars each month for a cable subscription, especially when they watch a fraction of the channels. And in the past decade most of the best content has come from streamers rather than the broadcast and cable networks.
Enter FAST.
In a way, the ad-supported model winds back the clock to a time before cable. But the difference today is choice.
Back when broadcast was the only game in town, consumers choices were limited. Usually just 3 or 4 networks to choose from. With FAST there is the potential for an almost infinite number of channels.
Content distributors can build a channel around almost anything. News, sports, cooking, cars...these are all genres represented FAST channels. Channels can be built around a personality - Peacock's Dan Patrick channel - or can pop-up around an event - like the death of Queen Elizabeth or the World Cup.
The possibilities are limitless for consumers and the opportunities are ripe for advertisers.
In 2023 advertisers will spend $4B on FAST. I'm 5 years that number is expected to triple to $12B.
For brands looking to take advantage of this trend, there are a few key things to keep in mind. In this article, we'll explore the benefits and challenges of FAST, and what brands need to know to succeed in this growing industry.
Advantages of FAST:
Affordability and Accessibility: FAST offers an affordable and accessible alternative to cable and streaming subscriptions, especially for younger audiences who are on the lookout for cost-cutting solutions.
Wide Reach: By launching their own FAST channel, brands can reach a wider audience and offer free TV content while getting ad exposure.
Building a Strong Brand Image: FAST channels offer a chance for brands to stand out and shine by offering unique and engaging content. This can position brands as thought leaders and influencers in their industry, leading to a stronger brand image and a loyal following.
Challenges of FAST:
Ad Load: One of the biggest challenges of FAST is finding the right balance between the number of ads and the amount of content. Too many ads can turn off viewers, while too few ads means less revenue.
Quality of Content: In order to attract and retain viewers, the content on FAST channels must be high quality. Brands need to invest in producing original and engaging content to keep their audience interested.
Data Privacy: FAST channels rely on collecting data on their viewers to deliver targeted ads. Brands need to ensure that they are transparent about the data they collect and how it is used to address privacy concerns.
Competition: FAST is a rapidly growing industry, and there is a lot of competition. Brands need to find ways to differentiate themselves from their competitors and offer unique and engaging content to stand out.
Ad Relevance: Another challenge of FAST is delivering relevant and engaging ads to viewers. Brands need to ensure that the ads they deliver are not only relevant to their target audience but also engaging and appealing.
Brands looking to take advantage of this trend need to be strategic and thoughtful in their approach to FAST in order to succeed. By balancing the right mix of ads and content, producing high-quality content, and delivering relevant and engaging advertising content, brands can tap into the power of FAST and reach their target audience in a new and exciting way.
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