In the last 6 years a notable trend has been going on in consumer viewing time, GroupM Netherlands report is showing a distinction between viewing time on the large screen and other devices, allowing for a categorization into three video consumption categories:

• Traditional television on the big screen, featuring broadcaster content.
• Connected television on the big screen, encompassing both broadcaster and non-broadcaster content.
• App-based television on all other devices, including both broadcaster and non-broadcaster content.

It appears this viewing time across all three categories has remained stable over the past six years, with a brief peak during the years of the COVID-19 pandemic. On contrary to United States trend, consumer do not massively cut their cable provider off. Mostly due to all-in packages offered by KPN and Ziggo.

As a result, people continue to consume a significant amount of content, including traditional television and streaming, through the set-top box, leading to 80% of the total viewing time being consumed on the large screen.

However, there is a noticeable shift in the consumption of viewing time from live/scheduled broadcaster content to content from streaming platforms.

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One of the notable players in this arena is Samsung TV Plus, hosting a wide range of Fast channels, showcasing the rise of these free ad-supported streaming TV channels in the EU.

Free ad-supported streaming TV (FAST) channels

Free ad-supported streaming TV channels, or Fast channels, live up to their name by offering content for free, supported by advertisements. They have rapidly infiltrated internet-connected TVs, offering a viewing experience almost indistinguishable from traditional linear channels. However, instead of broadcasting, these channels exclusively stream content, making them cost-effective and adaptable, especially for housing extensive library content.

Why should advertisers be attentive to this trend?

In the US, the FAST market is well ahead of Europe, boasting over 1,400 channels spread across 22 networks. These channels are accessible through various platforms like Pluto TV, Xumo, Amazion, Tubi, Roku and Samsung TV Plus. And now TV budgets are moving from linear to CTV and FAST.

Niches Thrive in FAST

These channels cater to various niches, from food and CSI to sci-fi, mirroring the diversity seen in cable. Some channels are dedicated to beloved reruns of shows from established production companies, but new ones are completely unique like Red Bull TV. Thanks to their quick and easy setup, channels can be created in response to trending events, such as Football-specific channels or Nature documentaries following significant news.

Audiences turn to these channels to complement their premium paid-for TV subscriptions, like Netflix and Disney+, reminiscent of the days of cable TV.

FAST Advertising

Advertising on Fast channels is primarily conducted through programmatic auctions rather than pre-buys, using similar ad-buying tools as online advertising. Contextual advertising is also gaining prominence, aligning relevant brands with suitable niche content. More and more major players get into the FAST Advertising field, some specific and others merge it with online instream or CTV budgets.

This revised version aims to provide the same information while being more reader-friendly and SEO-optimized with relevant keywords and phrases.

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In the ever-evolving landscape of television and media consumption, a paradigm shift is underway, and it’s being led by FAST channels. As traditional cable TV loses its dominance and streaming platforms continue to rise, Free Ad-Supported Television (FAST) channels have emerged as a powerful force. Offering an array of content choices without subscription fees, FAST channels have not only captivated viewers but also opened new avenues for commercials and advertising. This phenomenon is reshaping the way advertisers connect with their audiences and presenting a bright future for the industry.

The Rise of FAST Channels

FAST channels represent a departure from the traditional cable subscription model, where consumers pay a recurring fee to access a bundle of channels. Instead, these channels offer a curated selection of content at no cost to the viewer. The revenue model relies on advertising, making it an attractive proposition for both content creators and advertisers.

Several factors have contributed to the rapid rise of FAST channels:

1. Changing Viewer behaviour:

Consumers are increasingly moving away from traditional cable TV and gravitating toward streaming services. FAST channels meet this demand for flexibility and variety while still being free. Data from Magnite shows that across the EU5 markets, -for every age group-, between January 2020 and May 2021, traditional TV viewing rose by 17%,while CTV consumption increased by 55%. That’s a huge trend.

2. Monetisation Opportunities:

For content creators and media companies, FAST channels offer an additional revenue stream through advertising. Advertisers are willing to invest in these channels due to their growing viewer base and shifting budgets from traditional TV to CTV, online streaming and the rise of FAST content.

3. Engagement and Interactivity:

Many FAST channels leverage interactive features that allow viewers to engage with ads. This two-way interaction enhances the viewer experience and can lead to better brand engagement. QR codes are being utilised more and more in these scenario’s

Transforming CTV Advertising

The impact of FAST channels on the advertising landscape cannot be overstated. As the popularity of FAST channels continues to grow, their impact on the advertising ecosystem will become even more pronounced. Advertisers are likely to allocate more of their budgets to these channels, recognizing their potential to deliver personalized and effective campaigns. Content creators, on the other hand, will have the opportunity to produce high-quality programming while maintaining revenue through advertising partnerships.

However, the success of FAST channels also hinges on maintaining a delicate balance between ads and content. Striking the right equilibrium will be essential to avoid overwhelming viewers with excessive advertising and potentially driving them away.

In conclusion, the future of commercials and advertising is undeniably intertwined with the trajectory of FAST channels. These channels are reshaping how brands engage with their target audiences, offering precise targeting, data-driven insights, interactivity, and integration. As the landscape continues to evolve, advertisers and content creators alike are presented with a unique chance to explore innovative strategies and create impactful experiences that capture the hearts and minds of viewers in this new era of television.

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Sell Through Rate, closely related to Fill Rate, is a crucial metric in the realm of display advertising. It gauges how effectively a publisher is utilizing available ad inventory. Unlike Fill Rate, Sell Through Rate takes into consideration that inventory in streaming video (and audio) is based on time, not just impressions.

Example of sell through rate

To illustrate this concept, let’s consider an example. Imagine a viewer streaming a TV show on your FAST channel or app, encountering three ad breaks. According to your ad break policy, each of these breaks can contain five ads, each lasting 30 seconds.

The basic calculation suggests that you can deliver a total of 15 ads, each lasting 30 seconds, resulting in a 100% Sell Through Rate. But here is the catch:

Your ads can last 30 secs, but also 10, 8 or 15 secs

Due to the time-based nature of streaming, you could also deliver 1 ad lasting 90 seconds and 4 ads lasting 15 seconds, which collectively equals the time equivalent of 5 ads lasting 30 seconds. This would also yield a 100% Sell Through Rate.

However, let’s say you receive a report indicating that you delivered only 12 ads lasting 30 seconds each. In this case, your Sell Through Rate would be 80% (12 out of 15 ads were delivered).

The Significance of Sell Through Rate

For FAST channels, Sell Through Rate is a straightforward calculation that assesses and monitors your revenue performance. It also ensures that you are measuring the actual available inventory, addressing a unique challenge in streaming media advertising that differs from display advertising.

Unlike display advertising, where all ad units are loaded when a page is accessed, streaming ads cannot be rendered until the viewer reaches that point in the video stream. Moreover, there’s no guarantee that the viewer will reach that point. This is why viewability is not as relevant in Connected TV (CTV) advertising. Given the scale of video streaming, technology providers heavily rely on caching strategies, employing a standard like VMAP. VMAP functions like a Spotify playlist: a single play request returns a full list of ads for viewers to engage with at their discretion.

Excluding ad opportunities from the final sell through rate

In our earlier example, a 2-hour video stream with 10 ad breaks theoretically contains 50 ads. If we measure using these 50 ads, our Sell Through Rate drops dramatically from 80% to 19%.

However, since the viewer only watched 3 ad breaks, the remaining 7 ad breaks go unrendered and unsellable, thus excluded from the Sell Through Rate calculation. That’s it.

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