Linear TV is coming back in the form of streaming. Free ad-supported streaming TV (FAST) has been rising in the United States in the last few years, as more and more viewers are cutting the cord from subscription-based services such as Netflix and Disney+paid streaming platforms are making a foray into the ad-supported space, FASTs are completely free services that can provide either or both live linear channels and
such as Paramount’s Pluto TV, FOX’s Tubi, and Roku’s The Roku Channel in 2023. With FAST viewership increasing, brands and advertisers gain a new opportunity to reach audiences that can be scaled more easily and that are more willing to engage with ads.
FAST ad spending capitalizes on bingeable content
The rapid expansion of FAST in the U.S. has also attracted more marketers.
FAST advertising spending in the U.S. is experiencing a tremendous year-on-year growth spurt, increasing almost fourfold between 2020 and 2023.
FAST ad revenues were expected to further double between 2023 and 2025, surpassing that of cable, broadcast, and subscription video-on-demand (SVOD) services by the latter year. Moreover, spending on streaming overall (FAST and SVOD) was projected to outstrip that of linear TV (cable and broadcast) by 2025. The advantage of FAST advertising is clear: As streaming platforms can be directly integrated into connected TV user interfaces, advertisers can now target their ads to potential customers by filtering viewers by preferences and demographics. In 2023, Hulu was the
leading streaming platform for upfront spending allocation among marketers in the U.S., followed by YouTube TV and Peacock. When it came to genres and advertising effectiveness, news content took the cake. Leading FAST content types included older movies and episodes from TV shows that were no longer running – in line with FAST’s ideal programming, which allows consumers to tune in at any time and encourages bingeing.
Viewers’ arms are more open to streaming ads
Another benefit of FAST for advertisers is that audiences are equipped with a higher tolerance for ads in the streaming environment. Its higher targeting capabilities translate into a more finetuned personalization experience for consumers. According to an early 2024 survey, seven out of 10 American FAST users
preferred seeing ads that were relevant with the content they were streaming. Additionally,
ads on streaming TV were more favorably welcomed by Gen Z viewers compared to their cable TV and broadcast TV counterparts. FAST advertising is cost-effective, well-received, and flexible. As streaming TV continues to grow, it’s in marketers’ best interest to leverage FAST’s creativity and versatility to ensure increasing returns by delivering ads that resonate with the public.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
