Experiences refined for people
Although ad-free streaming services still have the edge for viewership numbers, FAST (free ad-supported streaming TV) is quickly catching up.
1 in 5 consumers traded their paid subscription service for a free ad-supported one due to economic constraints.
For advertisers, this presents an opportunity to reach previously untapped or inaccessible audiences through traditional advertising channels.
Explore what FAST advertising is, why it’s important, and explore popular FAST streaming services to advertise on.
Why FAST advertising? Consumers are getting used to ad-supported streaming subscriptions.
Only 13% of consumers oppose ad-supported streaming, down 36% in 2022!
FAST (Free Ad-Supported Streaming TV) is a streaming service model offering content to viewers for free, supported by advertisements. Unlike linear TV cable options, you can access FAST channels from many devices, including connected TVs, mobile devices, tablets, and computers.
It provides a cable-like experience through streaming without a cable subscription and setup, allowing you to watch hundreds of live, linear programs as you flip through “channels.”
The content ranges from new programs to older reruns with a few original shows.
These services are all examples of FAST streaming.
Some examples of shows available on FAST streaming platforms include:
As viewers tighten their finances, more and more have signed up for FAST as an alternative to costly linear TV and premium, ad-free streaming subscriptions. Streaming companies like Netflix started to use this model to gain more subscribers and ad dollars.
FAST TV services are growing quickly, with ad revenue projected to reach $4.1 billion in 2023. The market’s rapid growth compels content publishers, OTT service providers, and advertisers to tap into its potential.
But why is FAST streaming beneficial for advertisers?
Dispelling Misconceptions: Does free advertising = bad?
“Some brands may associate “free” content with lower quality or amateur production values. They might fear that their ads will be associated with subpar content, which could negatively impact their brand image.
However, it is quite the opposite and is very cost-effective, and on FAST platforms, users are more likely to watch ads since they are an organic part of the viewing experience.”
Traditional television might offer free content, but it comes with the uncertainty of how many ads will interrupt the show or how long they will last.
FAST platforms have found ways to alleviate this uncertainty, providing viewers with details like countdown timers and ad duration notifications.
Consumer ad viewership resistance among key demographics is relatively low.
According to Disqo, 34% of respondents said they were “very likely” to subscribe to a streaming service with ads. Acceptance is higher among younger demographics—the older consumers are, the less likely they are to accept free ad-supported streaming.
Offering viewers access to quality content in exchange for advertising exposure allows FAST platforms to establish a mutually beneficial bond. As viewers recognize the fair trade-off, they become more engaged with the ads they encounter, ultimately creating a positive advertising experience.
What’s one of the biggest benefits of FAST streaming?
“FAST viewers expect a fair value exchange for the free content they receive. Viewers know they’re paying for a less expensive plan in exchange for advertisements during the viewing experience. This anticipation of a value exchange fosters a more receptive attitude among viewers toward advertising. With features like countdown timers and ad duration notifications, viewers are more accepting of watching ads, further enhancing viewer engagement.”
FAST streaming’s rise to prominence has brought with it a common misconception that advertisements on these platforms don’t perform as well as those on premium streaming services or ad-free experiences. However, this notion is far from the truth and can potentially damage brands and advertisers by missing opportunities to engage with more audiences.
In reality, FAST viewership grew by 103% in 2021, and FAST ad impressions grew by 134% and is projected to grow even more by 2027.
Ad-supported tiers can be as premium and lucrative as traditionally paid tiers, and sometimes your audience isn’t on premium inventory like ad-free Hulu or Max.
Dispelling misconceptions: Is premium inventory better?
“It’s a prevailing belief among brands that securing a spot on premium inventory guarantees the highest exposure and success. However, focusing solely on premium inventory might lead brands to overlook the vast potential of ad-supported platforms and their diverse, engaged audiences.
There’s also a danger of assuming that ad-supported platforms lack the quality and credibility of premium offerings. Several reputable studios and media conglomerates own FAST platforms. For example, Fox and Paramount own Tubi and Pluto TV. Knowing this, advertisers can confidently set up campaigns. This not only solidifies the legitimacy of these ad-supported platforms but also offers advertisers a unique opportunity to align their brands with trusted names in the industry.
Ultimately, you need to go where your audience is, whether on a premium service or FAST.”
Rather than fixating on specific inventory categories, advertisers should embrace the versatility of ad-supported platforms and their ability to reach audiences across various interests and demographics.
The true “premium” status lies in reaching the right viewers at the right time. You should advertise where your customers are, whether on Pluto, Netflix, or Amazon Prime’s free ad tier.
⚡ FAST fact: Viewership
More than half of TV viewers watched free ad-supported TV, an increase from 48% in 2021.3. FAST platforms are convenient and flexible for viewers
Viewers can access their favorite content on various devices whenever they want to. This facilitates the scaling of users and the growth of viewership bases and opens up exciting possibilities for advertisers to align their campaigns with specific content types.
Example: A cooking enthusiast watches their favorite cooking shows on a popular ad-supported streaming platform using their smartphone and Smart TV. Advertisers can use this interest by strategically placing food-related FAST streaming ads within the cooking show content, offering a contextually relevant and engaging experience for the viewer.
Viewers are accustomed to brief ad interruptions before moving on to their desired content, making tailored ad content and branding pivotal in leaving a lasting impression.
In the past month, 45% of Black TV viewers have watched FAST services like Tubi, compared with 35% of total TV viewers.
Also, Tubi ranked fourth in viewership among Black audiences, behind only Netflix, Hulu, and Prime Video. FAST Advertising is a smart strategic approach when targeting Black audiences.
In 2022, Black viewers comprised 21% of Tubi’s audience.
Roku, a popular digital media player, and smart TV developer, offers access to over 350 channels with its The Roku Channel.
Unlike traditional linear TV stations, Roku’s UI takes after Netflix. Users can scroll through a carousel of live content and choose shows based on the on-demand content categories below.
Roku includes classic movies, sitcoms, and Premium content like Showtime series and AMC Plus, which users can pay for.
Fox owns Tubi and offers access to a library of over 50,000 movies and TV shows, including live and on-demand programs.
Viewers can also watch news from local stations like Fox, ABC, and more, offering an excellent option for people looking to replace their linear subscriptions.
Tubi also offers original shows through its Tubi Originals channel. It also partnered with Warner Bros. Discovery (and HBO) so viewers can watch shows no longer offered on the Max platform, like Westworld.
Paramount owns Pluto TV, which offers over 250 different channels to browse through. Like the other FAST players, viewers don’t need to open up an account to view the library of thousands of shows and movies.
Since Paramount owns it, viewers can access shows like Star Trek and Yellowjackets and can choose between Pluto’s movie channels like Pluto TV Spotlight, Pluto TV Crime Movies, and Pluto TV Staff Picks.
Plex is a unique FAST streaming service where users can combine their personal media collections alongside premium and ad-supported content streams across every genre. Users can also build their own content server to access their content from anywhere with an internet connection.
Plex offers over 200 linear channels and reaches 57.4 million viewers with over 50,000 on-demand shows and movies.
Unlike Roku, where viewers need a Roku-enabled device to watch, Plex offers an extremely flexible viewing experience where users can access content across almost any device, including smartphones, smart TVs, gaming consoles, and VR systems. It also claims to be available in most countries around the world.
Freevee, formerly IMBd Freedive and IMDb TV, is owned by Amazon. Users must have an Amazon account to access it, although they won’t need to pay for a premium subscription like Prime.
Freevee boasts its own originals on top of thousands of on-demand movies and TV shows like a Judge Judy reboot, “Jury Duty”. Viewers can access the app from nearly any device and operating system.
📚 Related Article: How to Advertise on Netflix: Want to advertise on Netflix? This article details everything you need to know.
FAST Streaming Advertising: A Great Bet for Advertisers
As the popularity of free ad-supported streaming TV (FAST) continues to grow to $4.1 billion in 2023, advertisers have an excellent opportunity to reach a diverse and engaged audience previously untapped by traditional advertising channels.
The convenience and flexibility of FAST platforms, coupled with their popularity among Black audiences, make them an attractive option for brands seeking to expand their reach and establish meaningful connections with their target demographics.
We use data-informed decisions to bring your business to the streaming services watched most by your target audience, wherever they are.
Chris Rowell is the Co-Founder and CRO at KORTX.
Here’s what we've been up to recently.
From us to your inbox weekly.
