Entertainment: FAST Forward: Premium Gets a Rethink in Streaming TV

Why it is the topic trending: The Growing Prominence of Free Ad-Supported Streaming TV and Its Impact on Advertising Strategies

• The article discusses the continued acceleration of free ad-supported streaming TV (FAST) and its significant revenue projections for the current year.

• It highlights how the rise of FAST is causing advertisers to reconsider their traditional definitions of what constitutes "premium" advertising inventory.

• The trend indicates a shift in advertising strategies as more viewers migrate to FAST platforms.

Overview: Premium Redefined: Advertisers Adapt to the FAST Streaming Landscape

Free ad-supported streaming TV (FAST) is experiencing rapid growth, with revenue expected to reach $11.7 billion this year. This surge in popularity is prompting advertisers to re-evaluate their long-standing criteria for "premium" ad inventory. As more viewers embrace FAST channels, advertisers are recognizing the value and unique characteristics of this evolving landscape, leading to a transformation in how they approach and define high-quality advertising opportunities in the streaming era.

Detailed findings: The Evolving Definition of Premium in FAST

• Free ad-supported streaming TV (FAST) is projected to generate $11.7 billion in revenue this year.

• Advertisers are beginning to rethink their traditional definitions of premium ad inventory due to the growth of FAST.

• The article implies that traditional metrics of "premium" may not fully apply or hold the same weight in the context of FAST.

• The author, Scott Dahlgren, discusses this shift in perspective for advertisers.

• The publishing partner for the article is Wurl.

Key success factors of product (trend): Audience Reach, Cost-Effectiveness, Evolving Consumer Habits

• Audience Reach: FAST platforms are attracting a significant and growing audience, offering advertisers substantial reach.

• Cost-Effectiveness: Compared to traditional linear TV or other premium streaming services, FAST can offer a more cost-effective way to reach viewers.

• Evolving Consumer Habits: As consumers increasingly cut the cord and turn to streaming options, including FAST, advertisers must follow their audience.

Key Takeaway: The Rise of FAST is Forcing Advertisers to Re-evaluate What Constitutes Premium Advertising Inventory

With the rapid growth of free ad-supported streaming TV, advertisers are recognizing the need to adapt their definitions of "premium" ad inventory to align with the unique characteristics and audience of these platforms.

Main trend: The Transformation of Television Advertising in the Streaming Era

The main trend highlighted is the fundamental transformation of television advertising as audiences increasingly shift from traditional linear TV to various forms of streaming, including FAST, necessitating a reevaluation of advertising strategies and the definition of premium inventory.

Description of the trend: Beyond the Box: Streaming's Remaking of TV Ad Norms

This trend describes how the shift from traditional cable and broadcast television to streaming platforms is disrupting established norms in TV advertising. Advertisers are now navigating a fragmented landscape with new metrics, audience behaviors, and platform types like FAST, leading to a need to redefine what constitutes valuable or "premium" advertising opportunities.

What is consumer motivation: Cost Savings, Content Variety, On-Demand Access

• Cost Savings: Many consumers are drawn to FAST platforms as a free or lower-cost alternative to traditional pay-TV or subscription-based streaming services.

• Content Variety: FAST platforms offer a wide range of channels and content, catering to diverse interests.

• On-Demand Access: While not always on-demand in the same way as subscription services, streaming in general offers more flexibility in viewing habits.

What is motivation beyond the trend: Technological Advancements and Changing Media Consumption Habits

• Technological Advancements: The increasing availability and affordability of high-speed internet and streaming devices have facilitated the shift away from traditional TV.

• Changing Media Consumption Habits: Younger generations, in particular, have different expectations and preferences for how and when they consume media.

Descriptions of consumers: The Cost-Conscious and Cord-Cutting Viewer

• Consumer Summary: The cost-conscious and cord-cutting viewer is an individual who has moved away from traditional cable or satellite television subscriptions in favor of more affordable or free streaming options like FAST.

• Who are them: Individuals who have cancelled cable or satellite TV.

• What kind of products they like: Streaming devices, smart TVs, affordable internet plans, and potentially free content.

• What is their age?: Spans across different age groups, with a higher concentration in younger demographics.

• What is their gender?: No specific gender bias.

• What is their income?: Varies, but cost is often a significant factor in their decision to cut the cord.

• What is their lifestyle: Likely digitally savvy and comfortable with using streaming technology.

• What are their shopping preferences in the category article is referring to: Consumers of free ad-supported streaming television.

• Are they low, occasional or frequent category shoppers: Frequent consumers of streamed content.

• What are their general shopping preferences-how they shop products, shopping motivations): Value-conscious, often research products online, and seek cost-effective entertainment options.

Conclusions: FAST Streaming Represents a Significant Shift in the TV Advertising Ecosystem

The growth of FAST is a clear indicator of changing television consumption habits and presents a significant opportunity for advertisers to reach a large audience, albeit one that may require a new perspective on what constitutes premium inventory.

Implications for brands: Adapt Advertising Strategies for FAST Audiences

• Understand FAST Demographics: Advertisers need to understand the specific audiences that gravitate towards FAST platforms.

• Explore New Ad Formats: FAST may offer opportunities for different types of advertising compared to traditional TV.

• Measure Engagement Differently: Traditional metrics may need to be supplemented with new ways to assess ad effectiveness on FAST.

Implication for society: The Continued Evolution of Media Consumption and Advertising

• Further Fragmentation of Audiences: Viewers are spread across a wider array of platforms.

• Potential for More Targeted Advertising: Streaming allows for more precise audience targeting.

Implications for consumers: More Affordable Access to Television Content

• Free or Lower-Cost Options: FAST provides a way to watch TV without expensive subscriptions.

• Increased Choice: Consumers have a growing number of platforms and content options to choose from.

Summary of Trends:

• Core Consumer Trend: Growing Adoption of Free Ad-Supported Streaming TV (FAST). Consumers are increasingly turning to free streaming options for their television content.

• Core Consumer Sub Trend: Cost Sensitivity Driving Streaming Choices. Many viewers prioritize affordability when selecting how to watch TV.

• Core Social Trend: The Decline of Traditional Linear Television Viewing. More people are cutting the cord or opting for streaming over cable and broadcast.

• Social Drive: The Desire for Affordable and Accessible Entertainment Options.

• Core Trend: Re-evaluation of "Premium" Advertising Inventory in the Context of Streaming. Advertisers are questioning traditional metrics of ad value in the new media landscape.

• Core Strategy: Advertisers Adapting to Reach Audiences on Emerging Platforms. Marketing strategies are evolving to follow viewers to where they are consuming content.

• Core Industry Trend: The Ongoing Disruption of the Television Industry by Digital Streaming Technologies. Streaming continues to reshape how content is distributed and monetized.

• Core Consumer Motivation: To Access Desired Content in the Most Convenient and Cost-Effective Way.

Core Trend Detailed: The FAST Evolution: Redefining Value in Ad-Supported Streaming

The core trend detailed here is the evolving understanding of value, specifically "premium," within the free ad-supported streaming TV (FAST) environment. Advertisers, accustomed to associating premium inventory with factors like high production value and exclusive content on traditional or subscription-based platforms, are now recognizing the significant reach and engagement offered by FAST services. This shift necessitates a re-evaluation of what constitutes a valuable advertising opportunity, potentially focusing more on audience demographics, engagement metrics, and the overall viewing experience on FAST channels.

Key Characteristics of the Core trend: Audience Scale, Cost Efficiency, Content Accessibility

• Audience Scale: FAST platforms are aggregating substantial viewership, offering advertisers a large pool of potential customers.

• Cost Efficiency: Advertising on FAST can be a more budget-friendly option compared to other premium video platforms.

• Content Accessibility: The ease of access to a wide variety of content on FAST attracts a diverse audience.

Market and Cultural Signals Supporting the Trend: Cord-Cutting Rates, FAST Platform Growth

• Cord-Cutting Rates: The increasing number of households abandoning traditional pay-TV is driving viewership to streaming services, including FAST.

• FAST Platform Growth: The proliferation and increasing sophistication of FAST platforms indicate their growing importance in the media landscape.

How the Trend Is Changing Consumer Behavior: Increased Consumption of Free Streaming Content, Acceptance of Ads

• Increased Consumption of Free Streaming Content: Viewers are spending more time watching free streaming options.

• Acceptance of Ads: Consumers on FAST platforms generally understand and accept the presence of advertising in exchange for free content.

Implications Across the Ecosystem: New Opportunities for Advertisers, Content Creators

• For Brands and CPGs: New avenues to reach target audiences in a cost-effective manner.

• For Retailers: Opportunities to advertise on platforms where cost-conscious consumers are viewing content.

• For Consumers: More free and affordable options for watching television content.

Strategic Forecast:

• FAST is expected to continue its rapid growth and become an increasingly important part of the television ecosystem.

• Advertisers will likely continue to adapt their strategies and definitions of "premium" to fully leverage the opportunities presented by FAST.

Areas of innovation:

• Advanced Ad Targeting on FAST: Developing more sophisticated ways to reach specific audience segments on FAST platforms.

• Interactive Ad Formats for FAST: Exploring new ad formats that engage viewers beyond traditional commercials.

• Data-Driven Measurement of Ad Effectiveness on FAST: Implementing more robust metrics to assess the ROI of advertising on these platforms.

• Integration of FAST with Other Advertising Channels: Creating more holistic advertising campaigns that incorporate FAST alongside other digital and traditional media.

• Branded Content and Sponsorship Opportunities on FAST: Developing more integrated and engaging ways for brands to connect with FAST viewers beyond standard ad breaks.

Final Thought: The New Currency of Streaming: Reach and Engagement in the FAST Lane

The rise of FAST is not just about free TV; it's about a fundamental shift in how viewers consume content and how advertisers need to engage with them. In this evolving landscape, the traditional definition of "premium" in TV advertising is being challenged and redefined. The future of premium may be less about the platform's cost to the viewer and more about the ability to reach a significant, engaged audience in a cost-effective and impactful way within the dynamic world of FAST.

Source: https://adage.com/studio-30/aa-rethink-your-definition-premium/