The rise of free ad-supported streaming TV (FAST) channels has transformed digital entertainment and audience engagement through innovative strategies like branded channels, interactive ads and integrated shopability.
On Sept. 18 at Ad Age’s Business of Brands in Chicago, Josh da Silva, VP of acquisitions and distribution at Questar, and James Smith, executive VP and General Manager of AdsPlus at Amagi joined Natalie Zfat, contributing editor of Ad Age Studio 30, to discuss how tailored content experiences on TV and streaming apps, such as Questar Entertainment’s GoTraveler, Hipstr and FamilyTime, are driving growth in the new streaming landscape.
Not every brand can tell their story with a billboard or social post, da Silva said. Through FAST TV and streaming, brands can effectively reach audiences on a deeper level through new technology and old-school storytelling. This includes personalized electronic program guides (EPG), branded storytelling and QR codes to embrace hybrid phone and TV experience.
Engaging viewers in the evolving landscape
Consumers’ attention spans have never been more fractured.
Consider the stat that 94% percent of consumers have a smartphone in their hand while watching TV—a trend that surely isn’t going away. This isn’t a bad sign, though, da Silva said. In fact, it’s really a huge opportunity.
“When I watch TV, I’m on my phone constantly. I’m looking up on IMDB: ‘Who was in this? Where did this person get this shirt? I love those shoes: Where can I order [them]?’” da Silva said. “So today in our space, we create shopability, QR codes and so much more, and bring our content hosts and our creators into your brand so that you can stand out.”
Smith gave an example of an L-band ad that could live on a travel channel.
“If I’m watching the Travel Channel in LA, and I see a Papa John’s commercial, I can go to DoorDash, and have pizza in 30 minutes,” he explained. “But in Miami, I could be seeing a Domino’s ad, and [now] my carrier is Instacart.”
Catering to niche audiences by creating FAST channels
It’s no secret that traditional streaming platforms typically specialize in certain genres, such as action or romance. But all of those channels can make discovering new content difficult.
“There’s only around 38% or 40% fill rates on that inventory now.” Smith said. “So as brands on the other side of the market, you’ve got to do something to stand out.”
Programmatic ads are only “a sliver of the creative potential,” according to da Silva. It’s akin to buying a Maserati but only driving it to the grocery store.
Sometimes big brands that want to drive new revenue will create their own FAST channels—including pop-up channels, even without having any expertise.
Having a FAST channel may look easy. “I equate that with going into a nice restaurant, having a great meal and delicious cocktail, and you’re like, ‘This looks easy. I should start my own restaurant,’” said da Silva. It’s important to create partnerships with companies like Questar Entertainment and Amagi to navigate the new frontiers, he added.
“Curating and proliferating content and aggregating really good content is something that’s been done a million times,” Smith said, “but getting your channel on a free ad-supported platform, getting it distributed in an EPG and then monetizing it all is not simple. Further, understanding connected TV and everything needed to monetize your channel from programmatic to ad operations is can be complex and there’s no playbook.”
Smith advised that finding the right partner decreases that risk, giving the brand a higher chance of improved performance on the publisher side, along with a chance to have a profitable channel.
Best practices and future innovations
Discoverability is tough when there are hundreds of channels to choose from. And even when you pick a streaming service—say, Netflix—you could scroll for ages and still never watch anything. So how should advertisers prepare to stay ahead of these changes?
“Personalized EPG is something that Amagi’s been working on that will change a lot of the way you view [channels],” said Smith. “When you put on a FAST channel, you also have the ability to have a personalized EPG, like you do on your Instagram, or your Facebook, or your TikTok. So when I turn on that new TV, less than a year from now, I’m gonna have shows programmed to me based on my consumption habits, and who I am.”
The Travel Channel, da Silva pointed out, was started in 1987 by TWA’s marketing department.
“They weren’t trying to sell anything,” he said. “They were just showing the experience and integrating that organically.”
Da Silva’s best advice for brands looking to expand into FAST channels? Take your time, and don’t try to force it.
“Let it be, let it breathe,” he said. “This is a space that’s growing 20% year over year. Nobody wants to be first, but nobody wants to be last.”