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A Hidden Bias Makes CTV Advertisers Miss Major Opportunities
Thursday, November 7, 2024, 5:31 PM ETPosted by:Dan Larkman
CEO, Keynes DigitalAs the cost of traditional streaming services continues to rise, consumers are increasingly turning to free, ad-supported streaming platforms (FAST channels) like Pluto TV. For advertisers, this shift presents an opportunity to reach diverse and engaged audiences in ways that have been largely overlooked. However, the advertising industry has been slow to fully embrace FAST channels. This hesitation can be traced back to a disconnect between decision-makers and the consumers they’re trying to reach. Many advertising professionals, who are often well-paid and white-collar, personally prefer premium, ad-free streaming services and fail to recognize the unique value FAST channels can offer.
The Rise of FAST Channels and Audience Shifts
Over the past several years, major streaming services like Netflix, Hulu, and Disney+ have steadily increased their prices to offset investments in original content and technology. This has caused a segment of price-sensitive viewers to explore alternative options. FAST channels, offering free content supported by ads, have become an attractive solution.
The appeal of FAST channels lies not only in their cost-saving benefit but also in the variety of content available. Channels like Pluto TV, Tubi, and Roku curate a wide selection of niche programming that caters to a diverse range of tastes. This diversity has attracted a more varied audience, including different age groups, ethnicities, and income levels, who may not have been traditionally represented in the subscriber bases of premium services.
Despite the growing number of viewers on FAST channels, many advertising professionals remain skeptical of the platforms’ value. Much of this hesitancy stems from a lack of personal experience with the service. After all, if you spend your free time watching Netflix, HBO Max, or Hulu without ads, it can be easy to dismiss the ad-supported alternative as inferior or irrelevant. However, this disconnect leads to missed opportunities to connect with a highly engaged and growing audience.
The Value Proposition for Advertisers
FAST channels offer unique benefits for advertisers. First, these platforms have lower costs compared to ad buys on larger streaming services or cable networks. For small and mid-sized businesses, this cost efficiency allows for greater flexibility in advertising budgets, opening up opportunities for brands that may not have been able to afford more expensive placements.
More importantly, the viewer base on FAST channels is more engaged than one might expect. Contrary to the perception that ad-supported platforms are simply the fallback for viewers who can’t afford premium subscriptions, these audiences often make intentional choices to seek out specific content. Whether it’s a retro sitcom, live sports, or niche documentaries, FAST channels provide something for everyone. Advertisers can tailor their messages to fit the unique tastes of the audiences these platforms attract, creating more targeted and effective campaigns.
Moreover, FAST channels offer advertisers the ability to leverage data-driven targeting capabilities. Much like larger platforms, these services utilize programmatic advertising that allows them to reach specific audiences. For brands looking to engage with diverse, multicultural audiences, these platforms can be a goldmine. From younger viewers who enjoy nostalgic programming to older, price-sensitive consumers, the ability to reach different segments on FAST channels is a significant advantage.
Overcoming Industry Bias
The reluctance of the advertising industry to fully embrace FAST channels comes down to more than just unfamiliarity—it’s rooted in bias. These professionals may not see the value in a service they don’t use themselves and, as a result, fail to recognize the appeal FAST channels hold for millions of viewers who make different financial and entertainment choices.
To overcome this bias, the industry must shift its mindset. Advertising professionals need to look beyond their personal viewing habits and evaluate the data. They need to understand that millions of Americans are tuning into FAST channels and that these platforms offer a rich opportunity to reach audiences in a cost-effective and meaningful way. By taking the time to study the growing popularity of FAST channels, ad buyers and planners can begin to appreciate the value these platforms bring to their clients.
FAST channels represent an underutilized asset in the world of advertising. As audiences continue to migrate toward these platforms in response to rising subscription costs, advertisers have a unique opportunity to engage with diverse and engaged viewers. This potential will remain unrealized unless the industry’s leaders are willing to look beyond their personal preferences for more premium services. By embracing FAST channels, advertisers can capitalize on the growing shift toward free, ad-supported content and unlock new avenues for reaching and resonating with their target audiences.Categories: Advertising, FAST
Topics: Keynes Digital