FAST Forward: For CTV Advertisers, It’s All Eyes On FAST

contents

By 2027, Connected Television (CTV) ad spend is projected to hit a staggering $42 billion. Yet despite its potential, current CTV advertisers face numerous challenges as they navigate today’s fragmented media landscape. Amid this, innovations in technology are ushering in new opportunities to reach desirable audiences where they are already consuming content. Increasingly, there's a rising star that savvy marketers can't afford to ignore: Free Ad-Supported TV (FAST). We’ll dig into why below – but first, a quick overview of the current state of CTV.

Brands today continue to scramble to implement and maintain "Video Everywhere" strategies – a comprehensive approach to ensure visibility across all video platforms. At the same time brands are seeking a presence across many platforms at once, effective audience targeting is growing more complex, with laws such as GDPR and CCPA tightening controls on personal information and consumers more aware of data privacy regulations. Not surprisingly, ads and content on CTV platforms often lack synergy and contextual relevance. This leads to a high risk of showing viewers ads that fail to resonate with their current mood or the context of the programming they are watching. From there, the result is no surprise: less resonant ads work against positive brand awareness and lessen engagement. Additionally, CTV ads shown repeatedly across platforms can induce ad fatigue, dilute a brand’s message and annoy viewers.

While these challenges are real, FAST platforms are stepping into the spotlight as a promising solution. Not only can FAST providers help advertisers overcome these challenges by addressing some of the pitfalls of traditional CTV advertising, they also offer brands cost-effective access to a rapidly growing, desirable market.

FAST Facts: The Numbers Don't Lie

Curious about FAST traction and growth? Horowitz Research's 2024 State of Media, Entertainment, and Tech: Viewing Behaviors report dropped a bombshell: 66% of TV content viewers are tuning into FAST platforms every month. That's not just a trend – it's a seismic shift in content consumption that shows no signs of slowing down.

As you explore FAST as part of your Video Everywhere strategy, here are 10 Top free ad-supported television statistics to know right now:

In 2023, 55% of U.S. consumers used at least one FAST service, up from 40% in 2021 (Source: Ampere Analysis)
FAST viewership in the U.S. is projected to reach 216 million by 2025, up from 163 million in 2020 (Source: nScreenMedia)
The average time spent on FAST platforms increased by 20% year-over-year in 2023 (Source: Conviva)
The global FAST market is expected to reach $32 billion by 2027, growing at a CAGR of 24% from 2022 to 2027 (Source: Allied Market Research)
U.S. FAST ad revenue is projected to reach $10.3 billion by 2025, up from $2.1 billion in 2021 (Source: S&P Global Market Intelligence)
The number of FAST channels worldwide increased from 1,000 in 2020 to over 1,500 in 2023 (Source: Amagi)
The number of FAST-enabled smart TVs is expected to grow by 30% annually through 2025 (Source: Strategy Analytics)
The number of content hours available on FAST platforms increased by 90% between 2021 and 2023 (Source: Verizon Media)
Ad completion rates on FAST platforms average 98%, compared to 95% for traditional linear TV (Source: FreeWheel)
68% of advertisers plan to increase their FAST ad spend in the next 12 months (Source: IAB)

This surge in growth reflects a significant change in viewer preferences, with many consumers ditching traditional cable TV for free streaming services.

The TLDR: For advertisers, this presents a golden opportunity to connect with a broad, diverse audience without the constraints of subscription-based models.

Why FAST – and Why Now?

So, why are savvy CTV advertisers setting their sites on FAST? Along with ad placement on the largest screen in the home, FAST is quickly becoming a keystone of a successful “Video Everywhere” strategy for its unique ability to offer all of the following at the same time:

Audience Reach: FAST appeals across demographics. Younger viewers, who are increasingly moving away from traditional TV, are embracing FAST as their go-to source for entertainment. At the same time, older audiences, who may still value the familiarity of linear TV and the cable viewing experience, are also turning to FAST for its cost-effective content.
Familiar viewing experience: FAST serves up a familiar TV experience that looks and feels similar to cable, which makes your ads feel right at home in a setting that's comfortable and intuitive for viewers and increases the likelihood of engagement.
Elevated brand perception: FAST platforms feature high-quality, premium content to viewers for free, so brands can associate themselves with desirable content without the higher costs of other video advertising.
Reduced ad fatigue: Unlike traditional TV's repetitive ad cycles, FAST's diverse ad lineup keeps viewers engaged. Because FAST ads are not shown repeatedly as they are on traditional TV, viewers are more likely to pay attention, stay engaged and feel receptive to the brand’s message.

Creative flexibility: FAST platforms support a wide range of ad formats, from traditional video ads to interactive and dynamic ad experiences. This means advertisers can experiment with different formats and creative ideas, tailoring their campaigns to maximize impact.

Ready for the FAST Lane?

As consumer behavior shifts toward free, ad-supported content – especially on connected devices – savvy advertisers are making a FAST presence central to reaching broad audiences through high-quality content free from the constraints of subscription-based models.
Ready to join them? In Anoki’s Why Advertise on FAST, we take a deeper look at why FAST is a viable and potentially lucrative avenue for CTV advertisers today.

You will learn:

Why FAST is the “Next Big Thing” in CTV advertising
How FAST and SVOD differ – and why that matters for CTV advertisers
The crucial FAST market trends shaping the future of CTV
The 7 universal brand benefits of advertising on FAST

Download Anioki’s Why Advertise on FAST white paper to discover the FAST advantage and stay ahead of the curve.