FAST channel revenue is predicted to reach $12 billion by 2027. As the popularity of FAST channels continues to grow, so does the prominence of addressable advertising in the TV monetisation landscape.
To maximise monetisation, operators and video service providers need to be strategic with the FAST channels they add to their portfolio and leverage enhanced discoverability tools. They need to cater to the specific preferences of end users to enhance viewer engagement while boosting their ad opportunities. This article will explore some of the key elements to successfully launching a FAST channel offering.
How to implement a user-driven FAST channels offering
The proliferation of FAST (Free Ad-Supported TV) channels is undeniable. However, merely presenting hundreds of these channels to users can lead to a paradox of choice. This often results in viewers feeling overwhelmed, potentially not watching any channels, or even worse, turning off the TV or watching something on another service. Therefore, it’s crucial for service providers to curate a FAST offering that aligns with audience preferences, bolstered by effective discoverability tools. Moreover, considerations around distribution, advertising, and content alignment are paramount when launching a FAST channel.
For a distinctive experience, leveraging the niche content typically found in FAST is essential. It’s logical to assume that a viewer who watched Formula 1 content via a Pay TV channel might be interested in a motorsport-themed FAST channel. Similarly, a fan of ‘MasterChef’ would likely gravitate towards cooking channels. By tapping into viewer preferences, service providers can craft a compelling value proposition, target a specific audience segment, and subsequently boost advertising revenues. After all, tailored content often commands higher cost per mille (CPM) rates.
Advertising plays a pivotal role in the FAST ecosystem. With the surge in FAST channels, there’s an expansion in content inventory. Both service providers and advertisers need a streamlined strategy to match ads with appropriate audience segments, ensuring expansive reach. Advertisers aim to engage the majority of their target audience, making this a critical factor in their investment decisions. Furthermore, the relevance of ads to the audience is essential. To truly maximise revenue, a solution that consolidates demand from various sources and offers a broad audience reach is vital. This approach can package available ad slots to achieve optimal monetisation. However, service providers must tread carefully to ensure their audience data isn’t exploited by digital advertising behemoths. In today’s age, where addressable advertising is mainstream, there are numerous TV-centric solutions tailored to addressing this concern for service providers.
Personalising the FAST channel experience
The media domain is in a state of flux, ushering in a heightened demand for top-tier, user-centric TV experiences. Generative AI for content discovery, and increasingly, content creation, appears to be the solution the industry is leaning towards. Such AI-driven recommendations empower service providers to suggest FAST channels that resonate with viewer inclinations.
Looking ahead, the vision is for AI-powered personalised FAST channels. These channels would offer a bespoke experience, where each viewer, upon tuning in, encounters content curated to their individual tastes. This evolution promises a future where content aligns seamlessly with each viewer’s unique preferences.
Conclusion
Research shows that Europeans engaged in 50% more FAST content hours in Q3 2022 than the same quarter the previous year. The rise in FAST channel consumption has resulted in an explosion of new channels. To stand out in today’s highly competitive FAST market, content providers must deliver a compelling, user-driven experience to viewers.
By adopting AI-driven content discovery, AI-based personalised FAST channels, and targeted TV advertising solutions, service providers can drive viewers to the content they want to watch, segment audience data, and offer targeted ads.
