Content is King, but it is all about the ads in monetization

It is all about the ad-fill with FAST Channels – In the rapidly evolving landscape of Free Ad-Supported Streaming TV (FAST) channels and Connected TV (CTV), the focus has shifted dramatically towards advertising. The success of these platforms hinges not on the sophistication of ad-tech or playout systems, but on the ability to fill all available ad spaces. If a platform can achieve full ad-fill, the underlying technology becomes secondary.

The Current State of Ad Sales in FAST and AVOD

Industry data reveals a significant gap in ad sales within FAST channels and CTV. On average, only about one-third of all ad opportunities are sold, meaning content owners are missing out on two-thirds of potential revenue. This shortfall is exacerbated by the prevalent use of second or third-tier Supply-Side Platforms (SSPs), which typically offer lower ad sale values. The average Cost Per Mille (CPM) for ads on these platforms hovers around $10, less than half the original sale rate. This reduction is due to the multiple commissions deducted by Demand-Side Platforms (DSPs), ad exchanges, and multiple SSPs, each taking 20% to 30% for merely providing a technology connection.

Audience Expectations and Content Quality

Audiences today demand higher-grade content. However, the average FAST channel or Ad-Supported Video on Demand (AVOD) content is often a decade old. Viewers, much like those on YouTube, expect the latest content and traditional cable-like services in exchange for watching $30 CPM advertising. The high ad-tech taxes, due to the involvement of multiple intermediaries, result in content owners receiving as little as one-tenth of the gross revenues, despite bearing more than two-thirds of the costs and risks.

Kapang’s Innovative Solution to Monetize Content Studios

Kapang has emerged as a game-changer in this space, offering an end-to-end solution for broadcasters and content owners. By reducing the number of intermediaries by half, Kapang delivers higher advertising rates through increased efficiencies. Their hybrid approach of programmatic and addressable advertising ensures 100% ad-fill, providing a seamless experience for both advertisers and content owners.

Kapang’s self-service platform and direct ad-sales team, including sponsorships and product placements, guarantee 100% ad-fill. This partnership service allows content owners to get closer to advertising revenues, with a single platform enabling them to receive around two-thirds of the gross DSP advertising revenues and up to 100% of the revenues via a traditional managed service fee structure.

Meeting Viewer Demands for better content

Kapang’s approach is driven by viewer demands for new and higher-value channels. They are also introducing subscription and pay-per-view services for traditional high-value cable channels, live events, and direct-to-platform studio productions. This centralized content monetization platform offers the same flexibility as YouTube creators while providing advertisers with confidence that their ads are being seen in premium, curated, studio-grade content.

Ad-funded Content Monetization – The Conclusion

In conclusion, the future of FAST channels and CTV lies in maximizing ad-fill and reducing the layers of ad-tech intermediaries. Platforms like Kapang are leading the way by delivering higher ad rates and ensuring that content owners receive a fair share of the advertising revenues. This approach not only meets the demands of modern audiences but also provides a sustainable model for content monetization in the digital age.

Check out https://viewtvx.com/kapang/