The FAST Opportunity: How to Keep Pace

Consumers can enjoy linearlike viewing experiences with a wide variety of content all supported by advertising and thus free of subscription fees Programmers can expand the reach of their content at a low cost as they continuously work to be everywhere their viewers areAnd advertisers enjoy curated brandsafe environments with costeffective reach and targeting FAST channels can offer more inventory more affordable CPMs and even greater measurability than some traditional TV buys they can be directly integrated into connected TV CTV user interfaces enabling advertisers to target viewers by preferences and demographics Add to that a wide variety of ad formats amp8211 such as attractively priced skippable and interactive ads QR response codes Split Screen Dynamic Overlay and Product Spotlight among othersAt Viamedia weamp8217ve been gaining deeper insight to the FAST space from the programming piece of the equationamp160 We recently announced a partnership with global news streaming service News of the World Viamedia will be the serviceamp8217s exclusive programmatic ad sales rep firmIt39s little wonder that programmers have gravitated toward FAST Appbased distribution might give them total control over their inventory but the process of expanding reach is timeconsuming and expensive FAST channels offer programmers an instant audience at a drastically lower cost albeit with some compromises in control and monetization major platform partners may control much if not all of the advertising relationships with a revenue share back to the programmersBut issues over inventory control aside the advertising revenue directed to FAST channels is growing wellamp8230 fastUS FAST ad spending increased nearly fourfold between 2020 and 2023 per Statista data and is projected to further double between 2023 and 2025 amp8239even surpassing that on cable broadcast and subscription videoondemand SVODamp8239services by yearend 2025But with that growth in ad revenue comes even more explosive growth in FAST outlets seeking slices of the audience and revenue piesAs reported in Deadline a new report on the sector has identified 1943 unique FAST offerings This represents growth of 13 from May 2023 and 47 from May 2022In 2023 Hulu was theamp8239leading US streaming platform recipient of upfront ad spend per Statista followed by YouTube TV and NBC Universalamp8217s Peacock Amongamp8239genres movies and TV shows were popular with advertisers but news content led the way As offerings have proliferated from contentheavy giants such as Disney and Warner Bros Discovery WBD viewership of general entertainment content has grownNevertheless according to another recent report in Variety FAST platforms such as Tubi and the Roku Channel are now tying or surpassing highprofile contentrich subscription streaming services like Disney WBDamp8217s Max and Peacock and are approaching Huluamp8217s reach per Nielsenamp8217s monthly surveys of servicesamp8217 viewing timeTrue crime perhaps not surprisingly is a particular genre standout some of the most popular channels as measured by distribution include Court TV Forensic Files and Unsolved MysteriesThis explosion in channels has produced somewhat of an audienceshare arms race among traditional media companies and newer playersThis has not come without consequences Many traditional media companies have been challenged with some trimming their FAST ambitions at least temporarily Their channels may be enjoying significant success in getting trafficamp8230 but many are unable to command the ad revenue programmers deem necessary to justify production costsOf course the bulk of digital advertising at the national level inexorably continues to trend to the FacebookGoogle duopoly and the frankly commoditized programmatic marketplaceIn short while FAST channel viewership has grown amp8211 so has the number of channels seeking to elbow their way onto viewersamp8217 screens And this poses a stark advertising amp8211 and thus monetization amp8211 challenge for FAST programmers and even distributorsBut thereamp8217s good news for programmers While many of course allow ad sales for their channels to be handled entirely by distribution platforms it is possible for the programmer to negotiate to pull their salesrights back While this may seem counterintuitive amp8211 why after all would a heavyweight distributor cede ad control amp8211 the evolving nature of the technology and the marketplace is enabling winwin scenarios that can empower programmer and distributor alike to achieve a risingtide revshare outcomeIn fact while the reality is that the FAST ad space is itself largely programmaticamp8230 for all programmaticamp8217s putative efficiency most FAST channels are filling only a fraction of their available ad slotsWith a truly informed and focused sales strategy programmers and distributors alike may find that theyamp8217ve been leaving money on the table and have unrealized and untapped access to that muchdesired advertising poolWhile there are a lot of moving pieces in this evolving monetization equation a crucial component for programmers and distributors is mastery of the process including all aspects of order management and reporting And it includes regular uptodate and current touchpoints with among others two key constituents local businesses who could be persuaded not to toss their advertising indiscriminately and nonstrategically at brandunsafe environments and the very influential demandside platforms DSPsIt also entails understanding the new toolsofthetrade For example programmatic supply path optimization SPO as the designation suggests can help buyers and advertisers find the most direct costefficient path to inventory while simultaneously reducing the number of exchanges they need to work with Gone are the days of obtaining incremental reach by adding more resellersA more focused adoperations strategy that helps programmers distributors and buyers alike to navigate the newest industry rules and developments at every step can help produce the secret sauce that delivers a winwinwin in an increasingly competitive and complex yet potentially lucrative environmentBut to truly capitalize on this new paradigm all parties should moveamp8230 fastPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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The FAST Opportunity: How to Keep Pace

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