Xumo's 2024 FAST Report
A new report commissioned by Xumo and designed/reported on by your very own FASTMaster has published
Last summer, Xumo contacted me about conducting some thought leadership in the FAST space. We created two studies, one among FAST ad buyers and one among FAST users. But crucially, the latter also included everyone else in the entertainment ecosphere, so we could look at the crossover between viewers of various formats.
You may have seen some highlights from these studies in the joint Xumo/Comcast Ads FAST report which published in late October last year. I put together a deeper report summarizing the consumer responses to FAST toward the end of November, which Xumo updated with more recent Xumo viewership data for Q1 2024.
The result is this report, which can be downloaded in full here. Below I’ll lay out some of what I think are key highlights, but before doing so, a note on the methodology. We know consumers don’t know what FAST is, so instead of being technical, I set the survey up to explain the difference between free on-demand content and free streaming channels. For any service a respondent said they watched FAST on, a screenshot of the FAST EPG for that service was shown and the respondent was then asked if they watch free streaming channels via that. This succesfully reduced inflated awareness/usage figures for larger platforms by up to 10 percentage points. Thus I am satisfied that these results are reflective of the market (as it was in Q3 2023) and aside from growth, I believe the findings hold up.
The Diversity of FAST Viewers
As it says on the slide above, FAST viewers tend to be younger than average, and more diverse (related to the age stat is the fact that they are also more likely to have kids in their household, which makes sense). Key takeaway: FAST should be seen as a key part of the toolkit by marketers who are looking for these exact audiences.
FAST Isn’t Just For Cord Cutters and Nevers
A very interesting finding was that close to half of pay TV subscribers say they watch at least one FAST service regularly, with a similar proportion of cord cutters doing so, whilst cord nevers are significantly less likely to watch. Key takeaway: TV viewers are finding value in FAST and sometimes watch that instead of watching TV. Thus if you’re an advertiser, you should assess the value perception of FAST - right now it’s a bargain to reach TV viewers versus the more expensive TV networks.
FAST According to Viewers
Younger viewers of FAST tend to be the least enthusiastic of all age groups about the format - this could be existential nihilism owing to the climate crisis and other world events shining through, or it could be reflective of the fact that FAST currently is very much geared toward middle-aged and older viewers based on content. This is beginning to shift with more channels based on creator content appearing. Key takeaway: FAST content must evolve in order to maintain and grow younger viewers.
What People Watch (on Xumo)
Xumo very kindly shared viewing data on the genres watched in Q1 2024 and the results are very interesting. The key to note is that each FAST service has a different blend of channels and drivers for use, so we shouldn’t extrapolate this and say “this is what all of FAST is.” But what it does show is that Xumo viewers love Crime shows (Xumo blends together true crime and crime dramas under the ‘Crime TV’ genre) and movies. The fact that national news has much higher viewing than local is worth noting as Xumo Play does carry ABC, CBS and NBC O&Os from all major markets. Key takeaway: Three genres account for almost two-thirds of viewing on Xumo Play but we shouldn’t run away with ourselves and say that this is the case across all of FAST. But maybe other services will see Xumo’s hand and raise with a viewing breakdown by genre of their own (that should be a key hope and also something that would help the industry to grow by pulling back the curtain just a little).
FAST Isn’t BreakFAST Content
A third of Americans say they regularly watch free streaming channels in the evening. That’s less than those saying they watch videos on social media, SVOD services or play video games, but close to levels for cable TV and broadcast TV. Don’t confuse this for me saying these are watched for the same amount of time - they aren’t - but overall sampling rates are strong and this fact should be noted. Key takeaway: FAST is becoming part of the media diet for a significant number of Americans.
FAST View Times Are Considerable
This data is among users of each format but it’s amazing to see that FAST averages close to an hour of viewing in primetime among users. Why is this amazing? Because FAST is often demeaned as something that is either mistakenly accessed, put on only for background noise (that one always makes me laugh because other formats are used more for background noise based on data I have seen) or something watched as a last resort until something better comes along. Key takeaway: FAST viewers stick around for close to an hour in primetime which means they get to see multiple ad pods and thus should be part of any campaign to reach viewers.
So that’s my highlights from the report. There’s a lot more interesting data in it, so read it today. I’d like to say thank you to Colin, Fern and Debbie for partnering with me and I hope after reading this you’ll thankful to the good folks at Xumo for wanting to put out some great thought leadership.
As a special bonus, I ran the text above through Jasper and asked it to craft a summary for why FAST is important for advertisers. Let’s see if this gets through the clutter!
FAST (Free Ad-Supported Streaming TV) represents a critical opportunity for advertisers and marketers due to its diverse and engaged audience base. Younger and more diverse viewers, often with children in their households, are increasingly turning to FAST services. Additionally, nearly half of pay TV subscribers regularly use FAST, indicating its appeal extends beyond cord-cutters to traditional TV viewers as well. This cross-demographic reach signifies that FAST is not merely an alternative but a complementary platform to conventional TV.
Furthermore, the average FAST viewer spends close to an hour watching during primetime, providing ample exposure to multiple ad pods. This sustained engagement offers marketers a cost-effective way to reach a significant portion of the media-consuming population without the hefty price tag associated with traditional media buys. As FAST continues to integrate more creator-driven content to attract younger audiences, its value as a versatile advertising tool will only grow, making it indispensable for comprehensive marketing strategies.
Key Takeaways:
Diverse Audience Reach: Target younger, diverse demographics effectively.
High Engagement: Benefit from prolonged viewing times and multiple ad exposures.
Cost-Effective: Achieve significant reach at a lower cost compared to traditional TV.
Incorporating these insights into your advertising strategy could significantly improve campaign outcomes and ROI.