FAST, and AVOD, and SVOD, oh my! Exploring the Future of OTT


Hypothesis’
Maia Wapnick recently attended the Advertising Research Foundation’s panel discussion, Optimizing Total TV: Strategies for the New Media Landscape. She heard from experienced industry professionals about what audiences really want when it comes to FAST, AVOD, and SVOD, and learned about the surprising shifts that are occurring in the world of Total TV entertainment. Curious about the state of media today, and where it’s headed? Check out our recap below. 

 

First: A quick primer on FAST, AVOD, and SVOD. 

  1. FAST: Free Ad Supported TV 

    FAST offers the closest experience to old-school cable television. Much like the cable menus of yore, viewers are served ad-supported channels that each run scheduled programming in real time.  

  2. AVOD = Ad Supported Video On Demand 

    With AVOD, users are in the driver’s seat when it comes to content. They access programming on demand (via platforms like Roku and Hulu, for example), and consume content in an ad-supported environment. Often, AVOD users are able to access this content for free.  

  3. SVOD = Subscription Video on Demand 

    SVOD users pay an annual or monthly fee to access content. Usually, this content is not supported by advertising. HBO Max and Netflix are two examples of SVOD.  

The relationship between FAST, AVOD and SVOD can be complicated and hard to untangle. 

Streaming and appointment viewing behaviors are muddying the waters, making it harder to identify what is what. And as more and more SVOD providers begin to experiment with lower cost, ad-supported offerings, the distinction between AVOD and SVOD is sure to become even more difficult to determine. 

It’s obvious that measurement needs to evolve. But what approach, if anything, can measure both holistically and accurately? As streaming technology continues to evolve and converge, understanding the right formats and moments in which to serve up content to viewers will only become more important. 

 

The proliferation of free, ad-supported streaming options is actually a good thing.  

Some industry experts feared AVOD would make SVOD redundant. Instead,  free or and lower tiers are functioning as a gateway to higher cost, ad-free tiers. Far from cannibalizing subscribers, free and lower cost streaming options appear to benefit SVOD as a whole.  

 

“Binge watching” habits are changing the game.  

The concept of “bingeing” a TV show may not be new, but this behavior is reshaping media consumption habits. Entertainment experts have observed that a whopping 70% of all viewership for a new show or movie released via streaming platform now occurs within only 15 days of the content’s premier date. This “window compression,” is upending the way networks and streaming giants approach marketing and advertising.  

 

The top pain point that viewers are experiencing today might surprise you.  

According to streaming execs and networks, viewers are suffering from too much of a good thing. The sheer volume of content available today across OTT is overwhelming, yet viewers are canceling services because “there’s nothing to watch.” Once viewers finish a popular TV show or movie, they aren’t discovering other popular properties that might keep them around. Improved user experience and more effective promotional tactics both have the potential to remedy the situation.  

 

When it comes to content, viewers are looking for simplicity and personalization.  

 Networks and streamers have a clear opportunity to compete on experience by optimizing their respective digital environments to reduce overwhelm, and deliver customized recommendations based on individual viewers. The meaning of “simplicity” and “personalization” will undoubtedly be different across groups of people, which is why it’s so important to invest in insights to determine which changes will deliver these concepts for a given audience.  

 

OTT presents brands with a unique opportunity to tap into sub-cultures.  

If OTT has one definitive edge over traditional cable, it’s this: significantly more data about who viewers are, what they’re watching, and what they engage with. Advertisers can leverage FAST and AVOD to identify micro targets – niche groups that may already have an affinity for a specific brand or product –and build ecosystems of experiences that are tailored to those specific groups. Deutsch LA explained how they helped Dr. Pepper do this when they discovered that Dr. Pepper fans had more in common than a love for unique flavor. Their Fansville campaign activated the sports subculture underlying their fan base. It’s a valuable opportunity to target and speak directly to diverse fan bases in ways that will resonate most deeply for their unique needs, building brand advocates for life. 

 

Want to learn more about key conference takeaways, and the panelists who contributed to the conversation? Click here to access more information on the Advertising Research Foundation’s website. 

Maia Wapnick