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Will ad-supported streaming really surpass TV?

Free, ad-supported television (FAST) channels are a growing area in the streaming universe, with new ad-supported offerings from Disney+ and Netflix. FASTs are completely free services that can offer either or both live linear channels and ad-supported on-demand content. The push by major players like Disney and Netflix should ultimately expand the category’s reach and inventory after years of ad-free streaming’s dominance. Other ad-supported streaming services like Peacock, Pluto TV, and Tubi present advertisers with a lineup of marketing opportunities.

 

The ongoing recession has consumers thinking more budget-conscious, so it is predicted many consumers will switch from paid to free ad-supported streaming TV services in the near future. A new report from TVREV projects that by 2025 ad spend on FASTs will surpass that of cable, broadcast or SVOD services. In summary: ad-supported streaming will eventually take over, just not yet.

 

What does this all mean for advertisers?

It’s anticipated that advertisers and brands will see FASTs as a replacement for broadcast TV, therefore capturing a significant share of local broadcast dollars. Advertisers will want to take advantage of the precise targeting and inventory that goes beyond traditional TV’s capabilities. Because the targeting is so much more precise, viewers are far more likely to engage with content which means a significant improvement in ROI. 

 

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With LTD Connect’s CTV platform, you can tap into 290,977 data segments for audience targeting. That level of precision enables reach at a fraction of the cost of traditional television. There’s no obligation to work with us when requesting more information, so please reach out to us and we will be in touch. We’d love to help you determine if connected TV is a good strategy for your business!

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