A key influence on the discussions at DMEXCO 2023 was how the emergence of free ad-supported streaming TV (FAST) channels is shaping the future of TV and premium video advertising.
More than half of European CTV viewers in AudienceXpress’ CTV Uncovered 2023 study who use free on-demand platforms spend more time with these than linear TV. So, to attract and retain these viewers, media companies are taking an audience-first approach to their content and advertising operations.
In light of this, the rise of FASTs is underscoring three key factors needed for the TV and premium video ecosystem to thrive, including:
Diversifying content to capture audiences
FAST audiences especially value great programming while also having a preference for niche content. Additionally, over half of European CTV respondents to the AudienceXpress’ consumer study say they switch to free on-demand streaming platforms when there is no content to their liking on linear TV.
Consequently, TV and premium video providers understand content is king when it comes to attracting viewers and so are focused on broadening their programming. Roku, for example, recently brought new quality content to its FAST service, while Lionsgate purchased Hasbro’s eOne film and TV business, which included 6,500 titles, and five major Nordic broadcasters closed a deal with ITV Studios to add premium entertainment to their channels.
The drive to cater for viewers’ content preferences is transforming streaming into an environment that is almost as personal as a social feed, helping TV and premium video providers grow their audience base, better monetise their content, and increase advertising revenue. This revenue is vital for creating and acquiring more professionally produced, high quality entertainment. Marketers, meanwhile, will gain more opportunities to reach specific audiences on a one-to-one basis through an impactful, lean-back environment where viewers are highly engaged with the content.
Standardising premium video content
Typically, FAST audiences prefer to access video content through devices and platforms rather than linear channels, driving the diversification of the TV and premium video landscape. In turn, this is sparking the need for greater standardisation, for instance by reducing confusion around what counts as premium video. While there is as yet no formal definition, several key ingredients can be classed as essentials:
Brand safety — The content and ad inventory accessible through premium video marketplaces is carefully curated to protect brand safety. When purchasing premium video inventory, buyers can be assured that their ads will not be shown within harmful content, which safeguards their brand from being impacted by negative associations.
Trust and transparency — Both buyers and sellers have clarity over the partners they are trading with for premium video inventory. Buyers can trust they are purchasing ad spots within high quality environments and sellers have oversight of the ads their audiences view, guaranteeing that ad creatives follow regulatory guidelines.
Metrics — Buyers can gauge the effectiveness of their premium video campaigns through accurate and reliable metrics, as well as attribute audience response to their campaigns to gain clear, actionable insights and drive impact.
Professionally produced — Long-form, professionally produced video content remains a strong favourite among audiences. High quality, scripted entertainment continues to attract unrivalled levels of audience attention.
Quality viewer experience — Audiences have full control over how and when they watch premium video, fostering a unique emotional investment in this kind of content. Studies from IAS into the quality of ad environments uncovered that high quality environments generate more engagement and low-quality environments pose a risk to brands.
Optimising ad loads to sustain the quality viewer experience
As delivering an exceptional viewer experience across screens and platforms remains a high priority, it featured on this year’s DMEXCO agenda. Environments such as FAST channels have already built a reputation for providing professionally produced content and a quality viewer experience. Keeping up with rising competition for attention and complex media consumption habits, however, will require audience-first innovation.
One key element of this is refining ad loads, which includes adjusting the length of each ad break and its total number of ads, in addition to the duration of individual ads and where they are placed within content, to ensure top quality advertising experiences.
Now able to access content however they choose, audiences can regularly switch between viewing long-form content on the big screen at home and shorter forms of entertainment on the go. This places pressure on TV and premium video providers to consider their ad loads for a diverse mix of platforms and devices.
FAST audiences in particular expect shorter ad breaks than linear TV viewers, prompting media companies to experiment with their ad loads. The outcomes of these trials will help to continually improve best practice for maturing channels such as FASTs.
Audiences are continuing to consume premium video using a range of channels, including free on-demand streaming services. This ongoing shift has led to the need for standardisation, alongside a strong focus on two key aspects of TV and premium video that make it unique: its exceptional viewer experience and its high-quality content. As such, the conversations at DMEXCO centred on supporting these to ensure the ecosystem thrives.
By Stefanie Briec, Director, Head of Demand Sales UK & International at AudienceXpress
