FAST measurement needs to get faster
Opinion
FAST may be growing strongly, but its adoption by brands is still hampered by limitations in measurement and a lack of understanding from advertisers.
Free ad-supported streaming TV (FAST) is not just a category, it’s a rapidly growing phenomenon within the global streaming and connected TV (CTV) landscape — and advertisers are paying serious attention.
Recent research indicates global revenue (including from ads) for FAST services has risen from $290m (£237m) in 2019 to over $9bn (£6.8bn) in 2024. The convergence of various factors is driving its expansion, creating an exciting potential for the industry.
For one, the continued effect of reduced consumer spending power has spurred increased demand for free-to-view options. This can be seen in the slowing growth of ad-free subscription VOD (SVOD) services, as constricted consumer purchasing power forces a reduction on the number of household subscriptions. Some projections suggest that global FAST viewership will overtake subscription models by 2030.
Moreover, the increasing accessibility of FAST-enabled devices is also helping to draw in viewers. For example, although certain FAST channels are only available to those with specific smart TVs (eg. Samsung TV Plus) or other connected devices (eg. Roku Channel), many are available across a much more comprehensive range of CTVs and devices (such as Pluto and Peacock).
Lean-back experience
The appeal of FAST channels goes beyond just being cost-effective too. The “lean back” viewing experience, where viewers passively enjoy curated content, is becoming increasingly preferable across society and media formats. FAST offers a unique blend of traditional TV’s familiarity and the convenience of digital streaming. This model allows viewers to escape the “choice paralysis” that can come with the practically unlimited viewing options of SVOD services.
The success of platforms such as TikTok, Instagram Reels and YouTube Shorts, which offer minimal search effort, further supports the broader trend towards lean-back viewing. Combined with the continued decline of linear TV viewership, especially among younger demographics, the focus will fall on FAST.
Of course, there are regional variations for FAST’s growth. Notably, the UK has a very different TV landscape than that of Europe and the US. The latter, in particular, where “free ad-funded TV” has been the norm for decades, has user bases for FAST services that are much more commercially proven.
Nevertheless, UK broadcasters and content owners continue to expand into FAST, with the number of channels available in the region rising to about 650 by early 2024. As more and more advertisers allocate their media budgets to FAST channels, how can the companies that make the content or make it “discoverable” drive global trends in a local market?
Faster measurement
To fully seize on this growing ad revenue or content licensing opportunity and stay competitive with digital platforms that already offer these capabilities, such as retail and commerce media networks, FAST channel owners and content providers must step up their measurement game.
In particular, the ability to understand behaviours and deliver detailed post-ad exposure reporting is crucial to unlocking increased ad revenue. Currently, limitations in FAST channels’ measurement systems can delay campaign feedback and this in turn hampers brands’ ability to optimise their media strategies mid-campaign.
To address this, FAST channels and CTV in general must invest in the right technology that can offer this unified view of reach and, crucially, incremental reach and performance powered by identity and data collaboration.
An interoperable, centralised identity framework allows advertisers to activate first- and third-party audiences, enabling precise targeting and measurement at scale across the entire long-form video ecosystem. This helps buyers create a holistic view of their campaigns, make real-time adjustments and maximise efficiency, while an identity spine also helps FAST publishers build their first-party graphs and enhance their available inventory for purchase.
Education efforts
Implementing the right technology is only part of the solution. There is also a critical need to prioritise internal education efforts to overcome data illiteracy and calm concerns over data-sharing in a privacy-centric way.
Many platforms can be cautious about sharing their first-party data. Their teams responsible for collecting user data may also not be in communication with the teams who are making it actionable. By bridging this gap and improving confidence in privacy-conscious technologies, FAST platforms can deliver richer and more valuable insights for advertisers — and this will lead to better ad experiences for viewers, more successful campaigns for brands and greater ad revenue generation.
As FAST channels continue growing in popularity, offering a relaxed, cost-free experience for a growing number of TV viewers, the commercial potential of these ad-supported channels is vast. However, if these publishers are to fully develop the commercial potential of their ad-supported channels, they should take the necessary action to meet the evolving needs and expectations of advertisers.
By exploring the capabilities of data collaboration and identity frameworks, FAST publishers can lay the groundwork for sustained growth while delivering better, more engaging ad experiences for viewers and improved outcomes for brands.
William Keggin is director of advanced advertising at LiveRamp