03/09/2024 | News release | Distributed by Public on 03/09/2024 08:08
Erik Brydges, Head of Political Demand
September 3, 2024 | 7 min read
One frequent point of feedback I receive from those in the political advertising trenches seems to be a paradox: their campaigns and causes want to be in front of must-win voters on the largest screen in the house, but they still struggle to see the allure and, therefore value, of CTV.
The CTV ecosystem is a lot more complex than traditional media buyers are used to (as my colleague Ryan Kenney helpfully explained in this article on TVRev) and contains a bunch of players and jargon that may be unfamiliar. But the reality is abundantly clear: viewers are tuning in and doing so in huge numbers. One of the places where they are watching the most is in free ad-supported streaming or FAST channels.
So, as political advertisers gear up for massive amounts of spending this fall, we're going to dig into what FAST is, why and how it dwarfs the user numbers of subscription services, who is watching and why, and why every political advertiser needs a share of the voice here.
What Is FAST?
FAST services offer on-demand content libraries or linear streaming channels with scheduled programming similar to traditional TV but with the added benefits of streaming technology. They are available for free and supported by ads. Major players in this space include Paramount's Pluto TV, streaming service Philo, Roku's The Roku Channel, and independent global streaming company Plex. These companies have invested heavily in amassing vast content libraries and developing original programming, ranging from evergreen movies and shows to niche interests, news, and sports.
Meanwhile premium content owners have come to see FAST channels as a vital distribution method. Increased viewership on these platforms translates to higher revenue, as FAST channels share advertising income with content owners. This has spurred major brands and producers to open their content vaults, i.e., Mattel, who recently brought three channels to Samsung TV Plus. Brands and premium content owners are drawn to FAST environments because of their commanding audiences and their brand-safe environments: FASTs don't air user-generated content (UGC).
FAST's ascent is primarily driven by its audiences. FAST services have commanded increasing viewership in the last few years: 57% of TV viewers in the US watched FAST platforms in 2023, growing from 40% in 2020.
Who Is watching?
FAST attracts a key voting audience that has generally been more challenging to reach than traditional audiences. FAST channels boast large user bases drawn by the allure of free content. They often attract a younger and more diverse audience: 58% of regular FAST viewers are between ages 18 and 44. This provides advertisers with significant scale and demographics to target. Viewers are increasingly turning to FAST services to combat subscription fatigue, making these channels a critical component of any comprehensive advertising strategy.
Key voting blocs include:
As Audrey Layman, head of global ad revenue & partnerships at Plex, states, "With 17M+ active US users and substantial coverage in critical swing states, political buyers can boost campaign visibility and influence across Plex's premium news, sports, and entertainment content lineup. In partnership with Magnite, we have enabled precise targeting solutions, which allow buyers to engage local and national voters through their own first-party data, content targeting, or Plex's TV viewership and intent signals."
Why Are They Watching?
Many FAST services are designed with intuitive content discoverability in mind. They feature personalized home screens for on-demand consumption or guides that simplify browsing by tuning into pre-scheduled programming, almost identical to the linear environment.
For example, some FAST AVOD services, which feature content on-demand, have intuitively designed home screens that allow viewers to discover new programming or similar series to those they have watched. These interfaces are powered by AI tools that enhance content discovery and curation, aligning suggestions with viewers' browsing histories and genre preferences.
Other FAST services utilize an Electronic Programming Guide (EPG), which resembles traditional linear TV guides, providing a familiar experience for viewers. This not only attracts audiences due to its familiarity but also offers more content than conventional linear TV. The EPG particularly appeals to those who prefer not to channel surf and enjoy "always-on" content tailored to their interests.
Aulden Kaye Yi, head of advertising partnerships at Philo, emphasized, "FAST channel viewership is quickly growing on our platform - these channels capture viewers' attention with engaging entertainment and lifestyle content that resonates deeply with our audience. For political buyers, this means an unparalleled opportunity to reach constituents when they're the most comfortable. Our focus on entertainment and lifestyle content creates a relaxed and receptive environment that amplifies the impact of political ads, and our largely authenticated inventory ensures political advertisers reach their intended audiences."
Why Should Political Buyers Invest?
In addition to clearly meeting the requirement of being in front of must-reach voters on premium content on the largest screen in the house, FAST and CTV offer clear advantages that linear just can't match:
"Pluto TV's extensive reach across all content genres combined with its TV-quality viewing experience allows political buyers to effectively scale across any audience or geography within the US in a brand-safe and premium viewing environment," said Christo Owen, senior vice president, advertising business development & programmatic, Paramount Advertising.
As the countdown to the presidential election begins, it's clear that traditional strategies need a reboot. FAST channels offer an overlooked avenue to engage voters through advanced and expansive reach and a nuanced understanding of viewer preferences. FAST isn't just an option in the race to win minds and votes-it's an imperative. For savvy political advertisers, FAST promises to play a pivotal, perhaps even deciding, role in this year's election race.
Tags: Advertisers, Buyer, CTV, Political