Building a dynamic social ad experience on FAST
Free ad-supported streaming TV (FAST) is currently positioned as streaming free-to-air (FTA) TV. However, the early data is building a compelling case that there are two distinct use cases for the new distribution model. Firstly, there are the silver streamers – the 55+ age group – who are familiar with traditional FTA and moved en masse into streaming during the Covid-19 pandemic. These consumers are lean-back, traditional-TV consumers who are willing to watch old favourites and continue their FTA consumption through an updated technology.
The second group are the younger digital natives who approach FAST as part of a wider entertainment lifestyle choice. For this group, FAST is lean back to the extreme, as only 51% of FAST viewers focus their attention on the content while it is playing. This contrasts the 58% who focus on subscription video on demand (SVOD)content. However, 34% of FAST viewers socialise and interact with friends while consuming, significantly above TV (at 25%) and YouTube (at 24%). This contrasts with subscription video on demand (SVOD), for which only 23% of consumers socialise while consuming. Leveraging social is FAST’s USP and needs to be done in a way that also brings along the more traditional 55+, lean-back FTA viewers who make up 25% of FAST consumers.
The FAST social ad innovation
Silver streamers are less likely to buy advertised items (8% compared to the consumer average of 13%) and less likely to buy something after seeing repeat ads for a product (10% compared to the consumer average of 14%). However, they do understand and tolerate the FTA model. Younger consumers are more likely to buy advertised products (17% of 25-34-year-olds) and respond more favourably to endorsed advertising from creators and influencers.
Increased sociability during FAST interactions, combined with nuanced responses to ad load, all point to a social ad innovation that can be led by FAST operators. The historic success of appointment-to-stream experiences, such as HQ Trivia, that had a peak of two million live concurrent streamers, show what is possible. Combining cash prizes with random celebrity guests allowed the promotion of branded products and brand takeovers of the app experience. Live chat functionality and the effervescence of the live broadcast itself all combined to deliver a differentiated entertainment app experience. If a FAST channel could implement a watch party function, cast members of streamed shows could offer their bespoke take on the content and allow for brand takeovers. This would transform the USP of a streamingFTA experience and draw in audiovisual background consumers. Combining the best of traditional radio hosts with the interactivity of a Twitch streamer will appeal to both key consumer use case demographics, and it will allow a free model to deliver premium and engaging ad experiences.
Putting this functionality into market will transform the perception of FAST from bottom-of-the-market video streaming to premium live experience, all without introducing paywalls or investing in expensive original content.