Free ad-supported streaming TV (FAST) is but one component of the expanding AVOD space. How audiences react to the increasing frequency of ads is another factor – one on which FAST channels have the upper hand, new LG Ads data shows.
Overall, 76% of surveyed consumers found ad breaks on FAST channels shorter than those on cable or satellite TV. Not only are ads shorter, 69% of respondents felt FAST ads were of higher quality and more relevant to their interests.
For this study, LG Ads Solutions surveyed 1,500 U.S. adults who use connected TV devices. These viewers consisted of:
· 1,339 paid subscription users
· 1,147 free app users
· 396 FAST channel viewers
· 876 cable and satellite viewers
It comes as no surprise people react more positively to relevant ads. A previous study from LG Ads and DeepIntent found 57% of U.S. adults think ads on streaming services and apps were more relevant than those on linear TV – with 54% of respondents having a more positive impression of those relevant ads.
Short and sweet is apparently key. This report noted 60% of regular FAST channel viewers admitted they like to watch ads that make them laugh, while 57% are more likely to watch ads because they’re short.
Preference for shorter ads falls in line with the general popularity of short form content, due in part to apps like TikTok. YouTube is also gearing towards shorter ads, per a recent MediaRadar study.
And when ads yield positive reactions, marketers also stand to benefit. FAST channel users are particularly more likely (64%) to buy a mobile phone in the next six months, after watching an ad for that product.
LG Ads also noted FAST offers a more relevant customer base for home and travel advertisers. About 43% of active FAST viewers, for instance, said they were looking to buy or lease a car within the next year.
Many FAST channels benefit from being readily available via smart TV channel guides and across mobile and TV apps. A recent Comcast report on FAST penetration noted, “when a user is channel surfing on their connected device, it’s easy for them to land on the F.A.S.T. channels without even knowing it.”
LG Ads found nearly three-fifths (58%) of CTV households are using smart TVs. Moreover, nearly 80% of smart TV owners are aware of FAST channels.
One way some are looking to get into the FAST space and generate ad revenue is by tapping into a niche genre, VA Media CEO Mark Ashbridge previously told Fierce Video. What that means, he explained, is understanding “where there’s a high volume of interest and perhaps low competition.” Those niche genres may in turn enhance ad appeal.
Typically, FAST channels may appeal to consumers looking to spend less for subscription services. Interestingly, LG Ads noted the average household income for FAST channel viewers is about $75,000 per year. Meaning FAST viewers have a larger purchasing power compared to other audience groups surveyed.
News Source: FierceVideo