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Ad-supported streaming services: Worth a buy?

  • Jun 17
  • 3 min read

FAST, or free ad-supported streaming TV, is staking its claim in the streaming wars


Vintage TV on a pink background displays a wide open mouth on a teal starburst screen.
A growing number of Americans would rather see ads than pay for subscriptions.

The SVOD (subscription video on demand) wars are hotter than ever, between Paramount merging with Warner Bros and Netflix getting into podcasting. But there's another, more quietly growing corner of the overall streaming sandbox.


Ad-supported video on demand (AVOD) and Free Ad-Supported Streaming Television (FAST) channels are emerging as compelling alternatives for both viewers and advertisers. While the FAST market is still nascent, recent data suggests a bright future ahead.


What are the most popular free ad-supported streaming services?


The days of FAST being a well-kept secret are long gone. According to Comcast, 6 out of 10 households with connected TVs are using FAST services like Tubi, Xumo, Pluto, The Roku Channel, or Freevee; signaling a dramatic rise in adoption.


In fact, research published by Performance Marketing World shows that almost 7 in 10 CTV users prefer FAST to premium options!


Modern office meeting with two men presenting a CTV Media Buying for Growth-Stage Brands slide on a TV to seated attendees.
Learn the pros & cons of Premium CTV vs. FAST, measurement that matters, and how CTV drives downstream sales growth.

Why is FAST growing in popularity (besides that it's, well, FREE)?

 

Simply put, the ease of use. All you need is internet and your laptop, phone or smart TV. No subscription required, and sometimes you don't even need to log in. Just flip it on and scroll through channels, like TV in the good ole days. If you haven't tried it for yourself, check out Tubi or Pluto TV and you'll find everything from live sports to classic episodes of The Price is Right.


More importantly, these platforms are delivering on their promise – many viewers report positive viewing experiences on FAST channels and enjoy the content they offer.


News programming leads the pack in popularity, but the content spectrum spans far beyond headlines. Crime TV series, movies, and various other genres have found their home on these platforms, creating a diverse content buffet that rivals traditional cable offerings.


The linear nature of FAST channels, mimicking traditional TV's familiar flow, has proven to be a significant draw for viewers seeking a more structured viewing experience.


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This quick yet comprehensive guide to programmatic advertising will help you make smarter investments in CTV, Display, Video, DOOH, and more.

Are FAST channels worth the buy for advertisers?


For advertisers, FAST platforms represent a goldmine of opportunities. These services offer precision targeting capabilities that traditional television can't match, allowing brands to reach specific audience segments with unprecedented accuracy.


The ability to connect with cable subscribers through a digital medium, combined with cost-effective advertising rates, makes FAST an increasingly attractive proposition for media buyers.


Benefits of advertising on free ad-supported streamers:


  • More efficient & higher impressions than other CTV platforms

  • Additional touchpoints to reach your audience on incremental platforms

  • More flexibility to find your audience, given fragmented viewership habits

  • More access to premium content across smaller platforms


However, the terrain isn't without its challenges. Transparency remains a persistent concern in the FAST channel market.


Direct buyers currently enjoy privileged access to valuable data – such as Samsung's automatic content recognition (ACR) information – while programmatic buyers often face limited visibility into their advertising performance.



What's the future of FAST media buying?


The future of ad-supported streaming services points toward a fascinating convergence with traditional linear television.


Industry leaders anticipate increased focus on personalization and enhanced user experiences, blending the best aspects of both worlds. Major players like Comcast Advertising and Xumo are already pioneering this evolution, developing sophisticated tools and services for advertisers looking to capitalize on the FAST phenomenon.


These platforms are also investing more resources in advertiser education, helping brands understand and leverage the unique benefits of free, ad-supported television.

As viewers embrace these free alternatives and advertisers discover their potential, FAST channels are positioning themselves as a vital component of future media plans.


While social media platforms face increasing scrutiny and premium CTV channels command premium rates, FAST channels represent an exciting frontier for brands seeking to connect with audiences from the comfort of their couches.


Curious about telling your brand's story on FAST or traditional streamers? Drop us a line! We love talking TV.

For more ad buying news and tips, join our free, weekly Paid Media Insights newsletter.

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