FAST becomes a focus for advertisers, predicted to surge in 2024

Free ad-supported streaming television (FAST) is gaining swift momentum among both consumers and advertisers, according to a new report from Xumo and Comcast Advertising.

The report found that 94% of FAST viewing occurs on television screens as viewers embrace the ad-supported streaming channels for their cable-like programming and ease of use. This shift in consumer behavior has advertisers taking notice and rapidly ramping up investment.

According to the study, 84% of ad buyers already in the FAST ecosystem plan to increase their spending on FAST in 2024, building on increased investment this year compared to 2022.

Nearly half of advertisers surveyed currently buy FAST as part of their media strategy. They view it as an efficient way to extend their reach and laser target specific audiences. For example, 60% of FAST advertisers use it to reach a particular demographic.

Megan Halscheid, VP at Publicis Media, predicts this growth will continue as consumers look to cut costs on subscription services.

“More and more of the viewing audience will look to FAST to add to their viewing experience, making the format increasingly valuable to ad buyers,” said Halscheid.

Driving FAST’s popularity is the breadth and quality of programming options. About 56% of viewers believe FAST channels are on par with cable. Viewers also praise the vast selection, with 69% saying they can always find something to watch on FAST platforms.

Offerings span from local news and niche sports to themed movies and enthusiast content tailored to specific interests across services like Pluto TV, Freevee and Tubi.

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Xumo, a joint venture between Comcast and Charter, noted this diverse programming as a driver of FAST’s “tens of millions” of monthly viewers.

The report predicts closer integration between FAST and linear TV as the ad-supported streaming market matures. Advertisers also expect more personalized ad experiences powered by data, and increased education around the FAST opportunity as it moves into the mainstream.

But challenges remain, especially concerning the bevy of options currently available.

While advertisers are intrigued by FAST, some report difficulty tracking performance and measuring ROI across fragmented platforms. As viewership continues to explode, establishing standardized metrics will be key to ensuring brands can quantify the value of their investments.

Still, the trajectory is clearly upward for FAST as it reshapes the streaming landscape and offers a cost-friendly alternative to subscription services. With strong demand from both viewers and advertisers, all signs point to an even faster-growing FAST industry in the years ahead.

The full report is available here.