{"id":18895,"date":"2022-11-25T15:14:57","date_gmt":"2022-11-25T15:14:57","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/25\/wtf-are-fast-channels-and-should-advertisers-care\/"},"modified":"2022-11-25T15:14:57","modified_gmt":"2022-11-25T15:14:57","slug":"wtf-are-fast-channels-and-should-advertisers-care","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/25\/wtf-are-fast-channels-and-should-advertisers-care\/","title":{"rendered":"WTF Are Fast Channels (and Should Advertisers Care)?"},"content":{"rendered":"

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Worth $4bn in ad revenue in the US, free ad-supported streaming TV channels are only now gaining momentum in the UK. <\/strong>Here\u2019s what you need to know\u2026<\/strong><\/p>\n

Free ad-supported streaming TV (Fast) channels are, as the name suggests, free and funded by ads, and they now populate internet-connected TVs in their thousands. To viewers, they\u2019re almost indistinguishable from linear channels of old, but instead of being broadcast, all of their content is streamed. To broadcasters, they\u2019re inexpensive, flexible and easy enough to stock with library content. <\/p>\n

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Why should advertisers care? <\/strong><\/h2>\n

The US Fast market is several years ahead of the UK and Europe. The first thing to realize is just how vast the landscape is, with more than 1,400 channels across 22 networks. These are served through platforms such as Pluto TV, Xumo, Tubi, Roku, Samsung TV Plus and Amazon\u2019s Freevee (formerly IMDbTV). S&P Global Market Intelligence estimates that US Fast ad revenues are worth $4bn in 2022, with this projected to hit $9bn by 2026.<\/p>\n

Channels are spun out by niches, such as cooking, crime or sci-fi, similar to satellite and cable channels, or dedicated to re-runs of much-loved shows such as The Walking Dead Universe channel or Hell\u2019s Kitchen. Because they are fairly quick and easy to roll out, channels can be reactive \u2013 say a World Cup-dedicated channel or royal documentaries following the Queen\u2019s death. <\/p>\n

Audiences are watching these channels to complement the premium shows and movies on their paid-for TV subscriptions, such as Netflix and Disney+, with this style of viewing reminiscent of the satellite and cable days.<\/p>\n

We don\u2019t quite know how many people are watching these thousands of channels because the channels aren\u2019t yet covered by ratings measurement firms Nielsen or Barb, but Roku, as an example, is available in around 61m US homes, so penetration is high.<\/p>\n

Advertising is bought via programmatic auctions rather than pre-buys and is arranged with the channel operators using the broadly the same ad-buying tools they would use online. There\u2019s also much talk of the power of contextual advertising, aligning relevant brands on suitable niches.<\/p>\n

But are UK advertisers interested?<\/strong><\/h2>\n

Jon Manning, client investment director at Starcom, says Fast viewing is \u201cnot normalized in the UK\u201d. It isn\u2019t yet on his clients\u2019 media mixes, but he says that will change with the launch of ITVX (ITV\u2019s new streamer will launch on December 8 with 10 Fast channels<\/a>).<\/p>\n

\u201cITVX will make Fast more mainstream in the UK and should normalize the behavior.\u201d But until the UK ad industry has seen proof from ITV\u2019s channels, Manning says it is difficult to assess advertise appetite.<\/p>\n

\u201cI don\u2019t know if anyone is specifically saying I want to buy Fast channels at the moment in terms of the inventory, but it will probably get advertisers excited to buy top-level sponsorship to align their brand to the channel.\u201d<\/p>\n

These could be a good buy if they keep viewers in the video environment for a good duration, topped with channel sponsorship opportunities. \u201cOn the face of it, it seems like a really innovative way to increase supply and increase audience stickiness.\u201d<\/p>\n

According to Rufus Radcliffe, the managing director of on-demand at ITV, Fast channels were strongly favored by focus groups, hence their elevated status on the streamer. \u201cThey will offer content in a more lean-back curated way, which we know is a benefit to some viewers when there is so much to choose from.\u201d<\/p>\n

ITV\u2019s editorial team will use consumer data to understand what channels are working, then they\u2019ll \u201cdial up and dial down channels accordingly, in response to viewer demand,\u201c he says. The ad sales team will sell inventory to either sponsor or to place mid-rolls.<\/p>\n

Richard Young, who is director of syndication at Little Dot Studios, is responsible for running the company\u2019s seven Fast channels (Real Stories, Timeline, Wonder, Real Crime, Real Wild, Real Life and Don\u2019t Tell the Bride). \u201cWhat we\u2019ve forgotten in the move to AVOD and SVOD is that people actually quite like channels and that is happening across all demographic groups,\u201d he says.<\/p>\n

The issue of discoverability on SVOD is a known risk to advertisers<\/a>. A survey by Now (formerly Now TV) found that nearly half of viewers have at some point decided not to view TV after failing to find something to watch. \u201cPeople like the experience where they don\u2019t have to search for content, where someone is programming it for them and they can lean back and be entertained,\u201d says Young.<\/p>\n

While TV will be increasingly delivered online, that doesn\u2019t mean audiences only want to watch premium on-demand content on Netflix, Disney or Amazon. \u201cSVOD will always be there but for certain types of content \u2013 it doesn\u2019t need to be a premium paid environment,\u201d adds Young. <\/p>\n

What are other UK buyers saying?<\/strong><\/h2>\n

Kieren Mills, who is head of broadcast for Total Media, says Fast channels offer brands an opportunity to connect with viewers who have left the linear ecosystem. Total Media is building up its Fast channel client offering, although Mills says: \u201cIt isn\u2019t for every brand just yet.\u201d<\/p>\n

He says: \u201cFast allows brands to be a little more flexible in scheduling campaigns within a less competitive environment, compared with the more considered longer-game linear broadcast advertising schedule.\u201d<\/p>\n

Meanwhile, Chris Camacho, the chief executive officer at Chiel UK, says that, \u201cgiven the economic crunch and the fact consumers are looking to tighten their purse strings,\u201d Fast channels are particularly appealing to viewers as they cut back on SVOD services.<\/p>\n

\u201cFast channels will allow easy access to content via traditional advertising routes. This is a great opportunity for brands to reach audiences as they migrate away from subscription models while still maintaining a high demand for content.\u201d <\/p>\n

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