The Exciting Growth of FAST Channels and CTV

The current boom in free, ad-supported streaming services (FAST) is driven by advancements in technology that have made these services more affordable and user-friendly. This has resulted in the launch of over 1,600 unique channels from well-known brands like A+E and Fox, as well as new publishers such as Future Today and SportsGrid, according to TBI.

This surge in freely available content has led to a 40% increase in viewing time among US adults on FASTs over the past year, as reported by CTV research firm Aluma Insights. Another contributing factor to the rise in FAST viewership is the significant price inflation of subscription video-on-demand (SVOD) services like Netflix, Disney+, and Max, which saw prices increase by over 25% in 2023. This trend is expected to drive a robust 33% growth in FAST viewership by 2027, reaching over 115 million viewers.

Opportunities for Improvement in FAST Channels

While FAST audiences are expanding rapidly, a report by One Touch Intelligence highlights that ad fill rates for the growing FAST Channel market are currently at 38%. The remaining ad opportunities are often filled with PSAs or “We will be right back” promos.

To address this, the industry must expand and democratize the market for TV advertising. Historically, 500-600 advertisers dominated TV ad spend. In contrast, there are 9 million search and social advertisers, representing nearly $300 billion in annual ad spend, who are eager for a viable way to buy TV ads. Simplifying ad buying is crucial to unlocking this SMB spend on Streaming TV.

Why Small Businesses Should Advertise on Streaming TV

The growth of niche FAST Channels offers powerful, context-specific advertising opportunities. Channels like the Bob Ross Channel enable millions of niche advertisers to effectively reach their target customers. For example, an arts and crafts store or art gallery could geo-target Bob Ross Channel viewers in their area.

FAST has democratized television, allowing thousands of new channels to reach viewers with low operating costs. Straight-to-streaming ad managers will enable SMBs to buy ads on streaming TV with localized, targeted campaigns starting as low as $500. This game-changing development will supercharge the new television landscape.

The Value of Advertising on FAST Channels

Brands gain significant value by being associated with premium content on TV. TV viewers are more receptive to ads than in any other medium, making TV an extremely effective top-of-funnel part of any advertising strategy.

The FAST channel ecosystem has made it faster, cheaper, and more flexible for businesses to advertise on TV. A recent poll revealed that 58% of users believe over 1 million advertisers will be buying CTV ads by the end of the decade. Stay tuned for more exciting developments!