Pixalate, the fraud protection, privacy, and compliance analytics platform for Connected TV (CTV) and Mobile Advertising, announced the release of the Q2 2024 Global Free Ad-Supported Television (FAST) Apps Rankings and Traffic Analysis Report for CTV. The report highlighted a significant downturn in the estimated open programmatic ad spend share of voice allocated to FAST apps, with a staggering 64% year-over-year (YoY) decrease globally. This decline is reflective across all major CTV platforms, including a 37% YoY decrease on Roku, a 43% YoY decrease on Amazon Fire TV, a 44% YoY decrease on Apple TV, and a dramatic 67% YoY decrease on Samsung Smart TV.
On Apple TV, 10% of the estimated open programmatic ad spend was directed to FAST apps. Notably, the invalid traffic (IVT) rate for non-FAST apps was 77% higher than for FAST apps, indicating a relatively cleaner ad environment for FAST apps on this platform. The top-grossing FAST apps by open programmatic ad revenue for Q2 2024 were Xumo, Plex, and NewsON.
Roku mirrored Apple TV with 10% of its estimated open programmatic ad spend going to FAST apps. However, Roku saw the highest share of FAST app ad spend in the Latin America region, with nearly 70% of the ad spend concentrated there. The IVT rate for non-FAST apps was 30% higher than for FAST apps. Leading the revenue charts for FAST apps on Roku were Pluto TV, Sling TV, and Xumo.
Amazon Fire TV dedicated 15% of its estimated open programmatic ad spend to FAST apps. The platform's non-FAST apps had a 63% higher IVT rate compared to FAST apps. The top-grossing FAST apps for Q2 2024 on Amazon Fire TV included Pluto TV, Plex, and Sling TV.
Samsung Smart TV allocated 6% of its estimated open programmatic ad spend to FAST apps, the lowest among the platforms analyzed. Interestingly, Samsung Smart TV showed a 32% higher IVT rate for FAST apps compared to non-FAST apps. Leading the ad revenue generation for FAST apps on Samsung Smart TV were Samsung TV Plus, ViX, and Pluto TV.
“FAST apps rose to prominence during COVID-19 and while initially promising, relative ad spend in this space has fallen dramatically,” said Amit Shetty, VP of Product at Pixalate. “This decline possibly suggests market saturation of FAST apps and a potential shift towards non-FAST apps, which may be perceived as offering more premium inventory.”
The reduction in ad spend on FAST apps across all major platforms suggests a significant shift in the market dynamics. This shift could indicate a move towards non-FAST apps, which may now be seen as providing more premium and engaging content, thus attracting higher ad spend. As the market adapts to new viewing habits and advertiser preferences, stakeholders in the CTV ecosystem will need to stay informed about these trends to navigate the shifting terrain effectively.
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