Error 404 – Addressing the Pain Points in CTV FAST Channels

Addressing the Pain Points in CTV FAST Channels: How Kapang is Revolutionizing the Industry
Connected TV (CTV) and Free Ad-Supported Streaming TV (FAST) channels have become increasingly popular, offering viewers a wide array of content without the need for a subscription. However, despite their growing audience, content creators and broadcasters face significant challenges that make the FAST business model less viable. Here, we explore three major pain points in the CTV FAST ecosystem and how Kapang is addressing them to create a more sustainable and profitable platform for content studios and broadcasters.

1. Low Payout CPM Due to Multiple Middlemen
   One of the primary issues plaguing the FAST channel market is the low payout Cost Per Mille (CPM). This is largely due to the multiple intermediaries involved in the programmatic advertising process, each taking a slice of the revenue. By the time the content owner receives their share, it is often a fraction of the total ad spend. This fragmented revenue stream makes it difficult for content creators to justify the costs of production and distribution.
2. Poor Ad-Fill Rates
   Another significant challenge is the poor ad-fill rates, with only about one-third of the available ad inventory being sold. This is often a result of suboptimal Supply-Side Platform (SSP) management, which fails to effectively match available ad slots with demand. The low ad-fill rates not only reduce potential revenue but also lead to a poor viewer experience, as unsold ad slots can result in repetitive or irrelevant ads.
3. Extended Payment Terms
   The third major pain point is the extended payment terms, typically ranging from 90 to 120 days. SSPs often hold onto the cash for extended periods, creating cash flow issues for content creators and broadcasters. This delay in payment can be particularly challenging for smaller studios and independent creators who rely on timely payments to fund their operations.

Kapang’s Solution

Kapang has developed a comprehensive solution to address these pain points, making the FAST business model more attractive and viable for content creators and broadcasters.

1. Maximizing CPMs
   Kapang’s platform eliminates the need for multiple intermediaries, ensuring that content owners receive a higher share of the ad revenue. By streamlining the programmatic process, Kapang maximizes CPMs, providing a more substantial earnings potential for content creators.
2. 100% Ad-Fill Rates
   Kapang has implemented advanced SSP management techniques to ensure 100% ad-fill rates. This means that all available ad inventory is sold, maximizing revenue and improving the viewer experience with relevant and diverse ads.
3. Shortened Payment Terms
   To address the issue of extended payment terms, Kapang offers a 28-day payment cycle. This significantly improves cash flow for content creators and broadcasters, allowing them to reinvest in production and distribution more quickly.

Conclusion

The challenges of low payout CPMs, poor ad-fill rates, and extended payment terms have made the FAST business model risky and often unviable for many content creators and broadcasters. However, Kapang’s innovative approach addresses these pain points head-on, providing a more sustainable and profitable platform. With 100% ad-fill rates, maximized CPMs, and shortened payment terms, Kapang is paving the way for a brighter future in the CTV FAST channel market.

Are you ready to explore the potential of Kapang’s revolutionary platform? Join us in transforming the future of broadcasting.