FAST (Free Ad-Supported Streaming TV) is rapidly becoming a new advertising trend in Vietnam, offering businesses numerous advantages over traditional channels like cable and satellite TV. According to an Omdia report (January 2023), revenue from this service has increased 20 times from 2019 to 2022 and is projected to reach $12 billion by 2027 and $18 billion by 2028 (data from Broadpeak). As of Quarter 1 2024, there are a total of nearly 1,500 FAST Channels worldwide, with around 70% belonging to the US market. The development of technology and globalization has paved the way for FAST Channel to become an ideal business model in Vietnam. The prominent favorable factors include:
1. Increasing Video Consumption Demand
- Changing Video Viewing Habits: Vietnamese people are spending more time watching online videos on mobile and smart devices instead of traditional cable and satellite TV.
- Diverse Entertainment Needs: Viewers' entertainment needs are becoming increasingly diverse, requiring richer and more personalized content. FAST Channel meets this need with a diverse, free, and personalized content library.
2. Technological Advancements
- Improved Internet Infrastructure: Vietnam's internet system has improved significantly, with faster and more stable access speeds, enabling smooth online video viewing.
- Prevalence of Smart Devices: The number of smartphone and smart TV users in Vietnam is growing rapidly, expanding the reach of FAST Channel.
3. Superior Advantages over Traditional Channels
- Cost-Effectiveness: FAST Channel offers lower advertising costs compared to cable and satellite TV, helping businesses save marketing budgets.
- High Targeting Capabilities: FAST Channel allows businesses to target ads to specific audiences based on various factors such as demographics, interests, and behaviors, increasing ad effectiveness.
- Seamless Experience: FAST Channel provides a seamless viewing experience with fewer ads than cable and satellite TV, minimizing viewer discomfort and increasing ad receptivity. (Ad time is reduced to 8-10 minutes/hour instead of 10-16 minutes/hour compared to traditional cable TV).
With the aforementioned favorable factors, FAST Channel is an effective choice for Vietnamese businesses because:
1. Reasonable Cost, High Efficiency
- Cost Savings: Advertising costs on FAST are significantly lower than on cable and satellite TV. Businesses can reach a large audience at a lower cost, optimizing marketing ROI.
- Strict Expenditure Control: FAST offers flexible payment models, allowing businesses to tightly control their advertising budgets. Businesses can choose to pay based on CPM, CPC, or CPA depending on their campaign goals.
- Effectiveness Measurement: FAST provides detailed analytics tools to help businesses track campaign performance such as impressions, clicks, conversion rates, and ROI. Businesses can adjust campaigns based on collected data to optimize effectiveness.
2. Enhanced Viewer Experience
- Fewer Ads: FAST provides a seamless viewing experience with fewer ads than cable and satellite TV. This helps minimize viewer discomfort and increase ad receptivity.
- Naturally Embedded Ads: Ads are embedded naturally into the content without affecting the user's viewing experience. Ads are designed to match the surrounding content, creating a seamless and less intrusive experience.
- Ad Skipping Option: Viewers can skip ads if they don't want to watch them. This ensures user satisfaction and respects their right to choose.
- Example: Ride-hailing Service Y: Ride-hailing service Y used FAST to advertise discount codes to new customers. Thanks to the creative and non-intrusive ad format, service Y attracted viewer attention and increased new user signups.
3. Reaching a Huge and Diverse Audience
- Young and Tech-savvy Audience: FAST attracts a large audience of young people, Gen Z and Millennials - potential customers for many industries.
- Detailed Target Audience Segmentation: FAST offers ad targeting based on various factors such as demographics, interests, behaviors, and geolocation, helping businesses reach the right potential customers.
- Market Expansion: FAST helps businesses reach viewers who don't use cable and satellite TV, expanding their potential market and increasing opportunities to reach new customer groups.
4. Effectively Reaching Target Audience
- Demographic Targeting: FAST allows businesses to target ads to specific audiences based on age, gender, income, education level, and geographic location.
- Interest-Based Targeting: FAST allows businesses to target ads to people with similar interests, behaviors, and internet usage habits.
- Contextual Targeting: FAST allows businesses to target ads based on the content viewers are watching, making ads more relevant to their interests and needs.
FAST Channel is an effective, cost-saving advertising solution that delivers a seamless viewing experience for viewers, meeting the needs of Vietnamese businesses. With its superior advantages, FAST is poised to become a dominant advertising trend in the future, helping businesses effectively reach target audiences, increase sales, and enhance brand awareness.
Thủ Đô Multimedia - The 1st company in Vietnam offering a comprehensive FAST Channel solution.
With a professional and experienced team, we provide our customers with an optimal set of products and solutions, confidently ensuring enhanced reach and revenue. Whether you are just beginning to explore FAST Channel or need a consultative team to support your monetization strategy, Thudo Multimedia is always by your side. Contact us today for detailed information.