BY Rachel Cagle
Consumers are changing their television viewing habits thanks to the rising cost of living tightening their budgets. What are they willing to pay for, and which services (like FAST TV) do they think are worth the cost? Here’s what you and your client need to know.
More Consumers Switch to Affordable TV Viewing Options, like FAST TV
How Much are They Willing to Spend?
According to research from Hub, the amount consumers are willing to spend on TV subscriptions is steadily declining. In 2024, consumers aren’t willing to spend more than an average of $87 per month on subscriptions. But they’re actually spending less than that: an average of $82.
The appeal of many TV subscription services in the past was that they offered uninterrupted TV content. Commercials used to not stand a chance to the low prices of subscriptions.
But the tides are changing.
According to a previous SalesFuel blog based on data from bango, “58% of U.S. consumers report recently cancelling SVOD subscriptions when prices hiked too high.” Between 2021 and 2023, the percentage of time consumers spend watching pay TV fell from 38% to 27.9%. If they can get the programming they want from free, ad-supported TV instead of paying for it, they will.
Free, Ad-Supported TV Platforms Show Their Value
FAST TV and other free, ad-supported TV services are quickly becoming more valuable to consumers. According to Hub, they have more value than ad-free TV subscriptions:
- Free with ad services: 34% of consumers say these services provide excellent value
- SVOD with no ads: 25%
- SVOD with ads: 22%
According to another SalesFuel blog, based on data from Hub, value is one of three reasons consumers choose ad-free TV:
- Value: 42% of ad-free TV customers agree that this is the top reason they subscribe
- Variety of exclusive shows and movies: 41%
- Selection: 38%
Ads just don’t bother consumers the way they used to. “34% of consumers say that if they’re really interested in a show or movie, they don’t care if they have to watch some ads to finish it.” Only 17% of consumers say that they still refuse to watch any ads.
Overall, Hub says that 40% of consumers say they’ll definitely still be using their ad-supported services a year from now. Another 35% say that they probably will.
Partnering with the Right Service
Just because FAST TV is free doesn’t mean that all services are the same in the eyes of consumers. Viewers will drop a service quickly if it runs out of shows they’re interested in, says Hub.
So, to learn which FAST TV services your client should place their ads on, you need to compare their offerings. What shows and movies are your client’s target audiences interested in and does the service offer those?
You can find out which types of TV programming your client’s target audience prefers on AudienceSCAN on AdMall by SalesFuel. There you can learn:
- Which percentage took action after seeing a TV ad within the last year
- Which types of TV programming they prefer to watch
- Their favorite sports to watch on TV
- About how much time they spend watching TV on an average day
You can also look up FAST (free ad-supported TV) Viewers to see if their purchasing plans for the next year align with the products and/or services your client offers.
Just make sure that your client’s ads aren’t more than one minute long. More than half of consumers think that ads over a minute long are unreasonable.
It’s time to let your client know FAST TV’s value is growing, and they should take advantage of its viewership.
Photo by: Adrian Swancar