Free, ad-supported streaming television (FAST) channels are growing in popularity, and are more commonplace than ever — in particular at independent lodging and AirBNB host locales, in addition to consumers’ homes.
While viewed by many as a replacement for cable television, can FAST channels grow revenue while gaining audience by weaving commercials into the mix? Yes, a new report from LG Ads Solutions says.
But, consider the source.
LG Ad Solutions exists for one primary reason — to combine cross-screen TV and video inventory with “advanced, real-time linear and streaming TV analytics” into “a simple, unified platform for marketers wanting to optimize reach, frequency, and business KPIs for their campaigns.”
As such, advertisements on FAST channels is beneficial to its business, and a survey it conducted of 1,500 U.S. adults from cable TV households boosts its sales pitch to marketers.
With consumer adoption, attitudes, usage and perceptions of FAST channels the focal point of its survey, LG Ad Solutions determined that some 44% of the FAST channel viewers it connected with “demonstrate high TV ad-receptivity” — surpassing viewers of linear and other TV services.
LG points to a particular reason for this finding: Some 69% of these respondents say ads on FAST channels are more relevant and targeted to their interests.
LG conducted the survey with Leflein Associates — ensuring the study was independently administered.
Among the study’s other findings:
- Some 65% of Connected TV users are less likely to subscribe to cable or satellite because of their access to FAST channels.
- Some 58% of FAST channel consumers identify as male
- Some 45% of FAST channel consumers are between the ages of 35-54 (compared to 36% of cable/satellite TV subscribers)
- Some 76% agreed that ad breaks seemed shorter on FAST channels versus cable or satellite
