The Explosive Growth of Free Ad-Supported Streaming TV (FAST) Advertising

Samsung TV Plus is a free, ad-supported streaming service that offers viewers access to various channels. It is available on Samsung smart TVs and select mobile devices, providing users with a convenient way to access multiple content without needing a subscription.

The advertising landscape has significantly transformed in recent years, driven by the rise of Free Ad-Supported Streaming TV (FAST) platforms. These platforms, which offer viewers free, ad-supported streaming content, have emerged as a viable alternative to traditional TV advertising, offering advertisers new opportunities to reach their target audiences in a more targeted and cost-effective manner.

The Growth of FAST Advertising

One of the key drivers behind the growth of FAST advertising is the increasing popularity of streaming TV among consumers. According to a report by [source], the number of households using streaming services has steadily increased over the past few years, with many viewers opting for free, ad-supported options like FAST platforms.

This shift in consumer behaviour has created a lucrative opportunity for advertisers, increasingly looking to allocate their advertising budgets towards digital channels. FAST platforms offer advertisers a unique opportunity to reach a highly engaged audience in a brand-safe environment, with the ability to target ads based on demographic, geographic, and behavioural data.

FAST Advertising vs. Traditional TV Advertising

FAST advertising offers several advantages over traditional TV advertising. One of the key benefits is the ability to target ads more effectively. FAST platforms collect a wealth of viewer preferences and behaviour data, allowing advertisers to deliver ads that are more relevant to their target audience. This targeted approach can result in higher engagement rates and a better return on investment for advertisers.

Another advantage of FAST advertising is its cost-effectiveness. Advertising on FAST platforms is often more affordable than traditional TV advertising, making it an attractive option for advertisers looking to maximise their advertising budgets. Additionally, FAST platforms offer more flexibility in terms of ad formats and placement, allowing advertisers to experiment with different strategies to see what works best for their brand.

The Future of FAST Advertising

As streaming TV continues to grow in popularity, the future of FAST advertising looks bright. Advertisers increasingly recognise the value of these platforms as an effective way to reach their target audiences, and many are shifting their advertising budgets accordingly.

According to a report by Bandt, Samsung TV Plus has quickly gained popularity in Australia, surpassing 100 channels in the country. This growth can be attributed to the service's diverse range of channels covering news, sports, entertainment, and more genres. The availability of popular channels such as Bloomberg TV, Bloomberg Quicktake, and a variety of lifestyle and entertainment channels has helped Samsung TV Plus attract a large and diverse audience.

Over the past 6 months, Samsung TV Plus Australia has seen an increase in monthly active users by 38% and total viewing time by 61% and is #1 FAST service on Samsung Smart TVs by reach across Australia.

In addition to its existing channels, Samsung TV Plus has been expanding its offerings by introducing new channels. According to AdNews, Samsung TV Plus recently unveiled several new channels in Australia, including Paramount Network, Pluto TV Drama, and MTV Pluto TV. These new channels add to Samsung TV Plus's already impressive lineup, providing viewers with even more choices regarding their TV viewing experience.

Alex Spurzem, General Manager of Samsung Ads Australia & NZ, said: “With streaming giants, such as Netflix, adopting new ad-supported tiers and YouTube announcing its transition into the FAST space, we will see the popularity of free ad-supported models significantly grow in 2023.

"The appetite for free content in return for watching ads holds massive appeal amongst Australian audiences, and savvy marketers will be looking to capitalise on this growing opportunity. Samsung TV Plus continues to offer the next generation of free TV experience.“

According to internal research, Samsung TV Plus Australia ranks fourth amongst the over-the-top (OTT) apps used by owners of Samsung Smart TVs in Australia and New Zealand as of Jan 2023.

In the past 12 months, Samsung TV Plus has seen a nearly twofold growth in consumer viewing, including almost 3 billion hours streamed by highly engaged users worldwide.

Free and ad-supported services keep people entertained

Paid-for SVOD is here to stay, but Telsyte’s research also found that more than 60 per cent of non-SVOD users believe there is enough good quality video content from free sources to keep them entertained and not have to pay for subscriptions.

Broadcasting video-on-demand services (BVOD, including 7Plus, 9Now, 10Play, ABC iView and SBS On Demand) remained popular, and most platforms had more than 10 million viewers during FY2023.

Additionally, nearly 5 million Australians claim they have used free and ad-supported streaming TV (FAST) services, or services that offer FAST channels in the last 12 months.

Australians now have the option of more affordable ad-supported SVOD plans since Netflix and Binge launched their ad-supported options during FY2023. According to Telsyte’s research, more than a million non-sport SVOD subscriptions are subsidised by advertisements as of June 2023.

The study found that 36 per cent of SVOD users are interested in more affordable ad-supported service plans. Telsyte believes more services could introduce an ad-supported tier to attract a new audience. Ad-supported plans could lift the average number of subscriptions per household closer to 4 (currently 3.4) by 2027.

Samsung TV Plus's success in Australia can also be attributed to its innovative advertising opportunities. The service allows advertisers to reach a highly engaged audience through connected TV ads displayed on Samsung TV Plus's platform. This will enable advertisers to target their ads to specific demographics, ensuring their message reaches the right audience at the right time.

Overall, Samsung TV Plus has quickly become a significant player in the Australian streaming market, offering viewers a wide range of channels and advertisers innovative advertising opportunities. As the service grows and expands, it will likely remain popular for viewers looking for free, ad-supported streaming content.

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