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The growing popularity of Free Ad-Supported Streaming TV (FAST) channels is reshaping the advertising landscape, allowing brands to connect directly with consumers through streaming platforms. Companies like PepsiCo, Mattel, and United Airlines are taking notice, launching their own branded FAST channels to engage audiences in innovative ways. These developments were discussed at the Ad Age Business of Brands conference in Chicago on September 19, where James Smith (EVP and GM of AdsPlus at Amagi) and Dana Schueller (EVP and Head of Content at Starcom) shared insights on how brands can leverage FAST channels to form direct relationships with streaming audiences.
A New Era of Direct-to-Consumer Advertising
FAST channels offer brands a unique opportunity to engage consumers in a manner similar to linear TV, but with the flexibility and accessibility of digital streaming. As James Smith noted, “The traditional linear TV channel is now coming to you in a digital format,” which allows brands to create a direct-to-consumer relationship through television. Historically, this type of relationship was only possible on platforms like YouTube, TikTok, and Instagram, where brands could connect directly with their audiences. However, FAST channels now provide the same direct-to-consumer capabilities on TV, representing a significant shift for advertisers.
This shift is opening new possibilities for brands to engage audiences in a personalized, targeted manner. For example, PepsiCo launched its FLVR channel on FireTV, and Mattel introduced Barbie and Friends, Hot Wheels Action, and Mattel Jr. channels on Samsung TV Plus, reflecting how major brands are using FAST channels to extend their media presence and reach streaming audiences.
The Appeal of FAST Channels for Brands
FAST channels appeal to brands because they combine the mass reach of traditional TV with the on-demand flexibility of streaming. Unlike subscription-based services, FAST channels are free for users, making them accessible to a wider audience. This allows brands to reach large, diverse groups of consumers without the friction of paid subscriptions. According to Dana Schueller, “As a brand, you have to think about what you want to put out there for your audience and what makes sense. And the real big issue is discoverability.”
Discoverability is indeed a significant challenge for brands entering the FAST space. While platforms like Tubi, Roku, and Pluto TV offer more than 100,000 films and TV episodes, standing out in this crowded marketplace requires strategic content marketing. Schueller suggested that brands need to think carefully about what content they offer and how they can make it appealing to viewers, particularly when competing with beloved shows like “Little House on the Prairie,” which dominates the FAST channel landscape.
The Power of Branded Content on FAST Channels
Brands are increasingly recognizing the value of their existing content libraries, especially as Connected TV (CTV) grows in popularity. Many companies have untapped premium content, including sports, lifestyle, and music assets, that they can leverage on FAST channels. This has given rise to branded FAST channels, where companies create dedicated streaming platforms for their content.
For instance, Home Depot recently launched a series of curated content under the “Merry and Bright” banner, featuring Jordin Sparks and offering budget-friendly home decorating tips. The series includes shopping experiences with QR codes embedded throughout the miniseries, providing a shoppable experience for viewers. As Smith explained, this represents a convergence of connected TV, brand engagement, and e-commerce, enabling traditional brands to innovate in the digital space.
Additionally, brands can use temporary or seasonal pop-up channels to engage with audiences for specific campaigns or product launches. These short-term channels provide a highly targeted way to reach consumers during peak marketing moments, offering a fresh alternative to 24/7 branded content. Schueller highlighted that brands can also curate nostalgic content from their archives, which can resonate with audiences, further enhancing engagement and discoverability.
Challenges in the FAST Channel Marketplace
While the rise of FAST channels presents numerous opportunities, it also comes with challenges. One major hurdle is the need for better technology and user experience. As Schueller pointed out, brands need to ask, “How is the technology going to evolve and get smarter?” Personalized Electronic Program Guides (EPGs) are one solution, allowing viewers to receive curated content based on their preferences, blending the linear TV experience with on-demand capabilities.
As Smith noted, “When you start personalizing that guide and it’s fed to you based on your viewing habits, you’re in a position to get a lot of stuff you can’t get on social.” This type of personalization allows brands to deliver content that aligns with viewer interests, enhancing engagement and ensuring that branded content reaches the right audience. By connecting viewer behavior patterns with properly programmed content, brands can position themselves as central figures in the viewer’s entertainment experience.
Moreover, discoverability remains a pressing issue. With so much content available, ensuring that audiences find and engage with branded FAST channels can be difficult. To overcome this challenge, localization is key. For instance, Schueller suggested that airlines could promote new international routes by creating localized content highlighting destinations, and serving this content in hubs where the airline operates. This approach ensures that the content is relevant to the audience, adding value for both the consumer and the brand.
Looking Ahead: The Future of FAST Channels
The future of FAST channels looks promising, as brands continue to explore new ways to leverage streaming platforms. Seasonal channels, personalized EPGs, and shoppable content represent just a few of the emerging trends that will shape the FAST landscape in the coming years. Brands are learning how to adapt their strategies to the demands of streaming audiences, focusing on curation, localization, and personalization to stand out in a crowded marketplace.
The rise of branded FAST channels, like PepsiCo’s FLVR and Mattel’s Barbie and Friends, signals a broader trend of brands embracing direct-to-consumer content distribution. As more companies realize the potential of their content libraries and the power of streaming, we can expect to see more innovative uses of FAST channels to drive engagement and build brand loyalty.
The integration of AI and advanced targeting technologies will further enhance the viewer experience, enabling brands to deliver more relevant and engaging content. As technology evolves, the FAST channel space will likely become an even more important part of the advertising ecosystem, offering brands new ways to connect with consumers in the digital-first world.
In conclusion, the growth of FAST channels represents a fundamental shift in how brands think about content distribution and audience engagement. With the right strategies in place, brands can harness the power of FAST to forge direct, meaningful connections with their consumers, ensuring that their message cuts through the noise in today’s competitive media landscape.
