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There’s this misconception that Free Ad-Supported Streaming Television (FAST) is considered by users as a non-premium option compared to commercial-free formats.
It’s not.
General fatigue from ubiquitous subscriptions to dozens of services and apps, the ability to passively enjoy content with no efforts wasted on making choices, and the absence of monthly cable TV bills — all this is too good for users to voluntarily tag it as “inferior”. Which is evidenced by the Deloitte study: almost 60% of households enjoy a free, ad-supported streaming video service nowadays.
However, it’s important to keep in mind that the flexibility of the on-demand format still makes it a strong competitor to FAST, which evidently lacks such flexibility.
That’s why the key to success for FAST services comes down to arming them with smart personalization in every possible aspect that will foster user satisfaction and loyalty.
This way, under precise audience analytics and segmentation, even the advertising beast disrupting the content, typically deemed as annoying, can become an ally for providers of free ad-supported TV services, contributing to positive user engagement.
In this article, we will explore the most current and practical aspects of personalizing FAST channels in two ways: by customizing the content stream itself and by tailoring the free ad-supported TV ads based on the data.
And if you’re wondering where we got all this FAST wisdom from — we gleaned major FAST insights from top industry events like IBC 2023, complemented by our two-decade experience in the video streaming industry and AdTech expertise.
Viewing the personalization of free ad-supported TV channels, separating content stream and advertising personalization, is rather ineffective, for they are typically intertwined and are very complementary to each other. Yet, in each segment, one can discern the following distinct strategies:
With FAST being undeniably on the rise, advertisers are given an excellent opportunity to expand their reach and connect with the audience that was unreachable by conventional advertising channels. But as the demand for ad space on FAST channels increases, so do the expectations of the viewers for the ads. Let’s take a closer look at the components involved in the free ad-supported TV channel monetization process and things that make ads more tailored to their audience.
While you can monetize FAST channels in different ways, Dynamic Ad Insertion (DAI) is a key technology that allows effective advertising on FAST channels and maximizes ad revenue for publishers. Making it truly smart and right on point depends on several elements:
The formats of online video ads can vary depending on the platform, the content, and the audience. Yet, here are some of the ones you’ll come across most frequently:
On top of these formats, we’re seeing a growing shift towards interactive and shoppable ads, aiming to deliver a richer and more tailored experience. These ads leverage different elements like interactive scrollables, grids, polls, and more. According to Sprout Social, these ads have the potential to boost Click-Through Rates (CTR) by 47% and enhance brand recall by 32%.
See how we collect and analyze viewer behavior data, recommend tailored content, and weave interactivity into video streaming, making it not only more enjoyable for the audience but also more lucrative for media and broadcasting businesses.
Since FAST tends to mimic the somewhat generic feel of traditional cable TV, which isn’t very captivating or tailored for viewers, the services that step up to fix this problem by adding a personal touch to linear content and enhancing it with interactive features clearly take the lead. Here’s how this can be achieved:
The key to recommending content that users are likely to be interested in lies in analyzing a combination of viewer behavior, first-party data, and content metadata.
And the benefits? This engaging and more relevant viewing experience can keep viewers hooked for longer durations, contributing to an increase in the hours of view, lead to a boost in overall video consumption, and, ultimately, increase advertising revenue for the FAST service providers.
Personalization can effectively address another issue related to the scattered nature of live sports across different streaming platforms. Viewers often struggle to locate their favorite teams, players, and games in this scenario. A potential solution involves a collaboration between a streaming device and a sports league, creating a dedicated section (e.g., tennis) on the device’s home screen. This section not only helps viewers find where to watch matches based on their preferred streaming services but also offers additional tennis-related content like highlights, news, and analysis.
And the advantages? Such a user-friendly solution will not only simplify access to live sports but also enhance viewer engagement and loyalty.
It’s truly heartening to spot on TV something familiar that vibes with your local scene. That’s why a strategy that customizes various versions of the same linear TV channel, depending on the viewers’ location and their interest in local sports teams and events, is bound to be a success.
In this scenario, viewers in different areas would receive content specifically tailored to their region while tuning into the same broadcast. Additionally, this approach facilitates targeted advertising aimed at different viewer groups based on their location and demographics.
And the perks? It can not only enhance the relevance and appeal of sports content for viewers but also open up more opportunities for regional sports networks to generate revenue through monetization and sponsorship.
Explore our AdTech capabilities for enhancing your free ad-supported TV distribution strategies and maximize ad yield through our expertise in combating any challenge a publisher or AdTech software provider can face.
Generative AI, touted as the standout trend of the year, holds the potential to individualize FAST channels in several ways:
Generative AI can potentially revolutionize content personalization in FAST channels, as it can offer a more immersive and satisfying viewing experience for the user, and a more effective and profitable advertising strategy for the publisher. However, AI tools and technologies must be applied judiciously to avoid overwhelming or annoying the user or violating their privacy or preferences.
Personalization is wonderful in its diversity, but also quite fickle. Therefore, when implementing it, it is very important to ensure that:
In a recent article for Digital TV Europe, our video solution system analyst, Alexey Zaberezhniy, delved into the complexities of gathering, processing, and analyzing viewer data to construct detailed user profiles, including the ones within one household, and shed light on the most effective strategies to overcome them.
Moreover, if you’re curious about the remarkable recommendations attainable through machine learning-based models and the time factor, we encourage you to explore his insights.
If delving into all the steps and possibilities of personalization with articles sounds too time-consuming or simply isn’t your thing, our team of AdTech experts is here to address all your questions and concerns about tailored FAST TV services. With a wealth of project experience spanning numerous cases in video streaming and AdTech, we’re well-prepared to guide you on what it takes to ensure you don’t end up watching your competition pass you by in terms of personalized viewing experiences.