Ready to hear more insights from TVREV’s Alan Wolk? Don’t miss out on the TVREV Pre-Game Workshop: The Future of Streamonomics at The StreamTV Show in Denver on June 11. Check out the lineup and register here to be in the know on the latest trends across FAST, local TV, TVOS, and contextual advertising.
FASTs: A Call for Transformation
It has been over a decade since visionaries at Pluto and Tubi pioneered the realm of **free ad-supported streaming television (FAST)**. Fast forward seven years, and the acronym “FAST” has found its place in industry vernacular, yet the segment, once the darling of the TV landscape, now faces challenges that could profoundly affect its trajectory.
This isn’t a sign of impending doom; rather, it’s a moment ripe for rejuvenation. **FAST** requires a shake-up, some serious TLC, and a rethinking of strategy. Here’s why this matters.
Why FASTs Are in the Spotlight
Aside from giants like Amazon and Hulu, **ad-supported SVOD** has yet to make significant headway in the U.S. With this backdrop, FAST services remain the cornerstone of streaming inventory. Notably, the majority of ads seen in the U.S. still air on traditional linear TV.
Think about it: nearly all linear ads are sponsored, while only about half of streaming content follows suit. **Linear TV ad breaks are considerably longer**, creating a substantial imbalance that demands attention.
Identifying the Key Issues
FASTs are at a crucial juncture, and several hurdles need to be addressed:
Defining “FAST”: There’s widespread confusion over what “FAST” entails. From aggregators like Pluto and Tubi to platforms like **The Roku Channel, LG Channels**, and **Samsung TV Plus**, every service boasts unique offerings. Additionally, the term **”FAST Channels”** encompasses traditional linear channels among these services, muddying the waters even further.
Consumer Experience: Most viewers don’t use the term “FAST,” yet they are aware of the variety of free ad-supported services. The lack of consistency across platforms complicates content discovery, making it challenging to retrace one’s viewing steps, which leads to **missed opportunities** for both viewers and content producers.
Low Fill Rates: There’s a consistent issue with **underutilized CTV inventory**, particularly in FAST environments. Many channels simply aren’t attracting advertisers due to negligible viewership, leading to steep inefficiencies in the marketplace.
Lack of Transparency: Advertisers often find themselves in the dark regarding ad placement, while content owners lack insight into viewer demographics and preferences. This absence of transparency fuels distrust and uncertainty on both sides.
Unease in the Market: This year has highlighted a growing sense of apprehension regarding the potential culling of underperforming content and fluctuating ad rates. The mystery surrounding these shifts leaves many in the industry perplexed.
Europe’s Unique Landscape
In contrast to the U.S., the **FAST market in Europe** is predominantly influenced by public broadcasters providing free streaming content. This landscape significantly alters the demand for ad-supported programming, reinforcing the notion that one size does not fit all.
Charting a Path Forward
What’s the solution? Here’s a two-fold approach that may seem contradictory but could be vital:
Standardization: Imagine a world where top FAST services share a core set of channels and libraries. This standardization could enable advertisers to achieve **economies of scale** and broader reach, while also increasing transparency across platforms.
Personalization: Picture personalized channels akin to Spotify’s Daily Mix—tailored collections organized by preferences. This innovation would enhance user experience and allow advertisers to target audiences with **laser-like accuracy**, benefiting small and medium-sized businesses eager to dive into CTV.
While standardization and personalization might seem at odds, they could together create a more engaging and streamlined FAST environment, bridging the gap between viewer satisfaction and advertising needs.
The Rise of Google’s AI Agents
In the evolving landscape of digital advertising, **Google’s introduction of AI Agents** marks a groundbreaking step. These agents operate like specialized mini-ChatGPTs, excelling in niche tasks—like booking flights or optimizing digital ads.
The Importance of AI in Advertising
As the conversation around AI heightens, the introduction of **Google’s AI Agents** is a thrilling prospect for marketers. These agents aim to simplify the complexities of Google Ads by automating keyword optimization and offering data-driven insights.
The real magic lies in the practical efficiency these agents can provide. This transformation could level the playing field for those who may not be well-versed in leveraging Google Ads effectively.
Understanding AI: Opportunities and Challenges
While AI offers remarkable opportunities, it’s crucial to remember that we are still in the early stages. Like the internet in the 1990s, the full potential of AI remains to be unlocked. The question looms: how reliable will these AI agents be?
Steps to Take Now
If you’re entrenched in the industry, start experimenting with Google’s AI tools, as it’s likely that competitors will follow suit. A foundational understanding of how AI operates will be pivotal for your future success.
In an era of rapid change, staying informed and adaptable will be your best strategy. Embrace the evolving landscape without losing your critical edge, and remain on the lookout for what’s next.
Ready to dive deeper into the future of the industry? Don’t miss the TVREV Pre-Game Workshop: The Future of Streamonomics at The StreamTV Show in Denver on June 11. Learn about the latest developments in FAST, local TV, TVOS, and contextual advertising.
Alan Wolk is the co-founder and lead analyst at the consulting firm TV[R]EV and the author of the acclaimed book, Over The Top: How The Internet Is (Slowly But Surely) Changing The Television Industry. He frequently shares insights on the transformations in the television realm.
Week in Review features personal opinions and does not necessarily reflect StreamTV Insider’s views.
