In Conversation with Kunal Mehta, Head Partnerships, Samsung TV Plus

The rapid adoption of Connected TV (CTV) has revolutionized the way we consume content, with viewers increasingly shifting towards the convenience and flexibility offered by smart TVs and streaming devices. As traditional cable subscriptions decline, CTV’s seamless integration of online content and personalized viewing experiences has fueled its swift acceptance among audiences globally. Advertisers, recognizing the trend, are increasingly leveraging CTV’s targeted advertising capabilities, marking a transformative era in the television landscape.

In this interaction with Kunal Mehta, Head Partnerships, Samsung TV Plus, we delve into how CTV advertising has accelerated to phenomenal heights in recent years.

AR- How has the rapid adoption of connected TV devices and platforms affected the landscape of free ad-supported television, and what opportunities does this present for advertisers and content providers?

Kunal- Made possible by the adoption of Smart TVs and the rise of cord-cutters, connected TV (CTV) and CTV advertising has accelerated to phenomenal heights in recent years. Now reaching 35 million households across India, CTV adoption is expected to double by 2025. 

There is an abundance of premium ad-free content found on CTV from the likes of Disney+ Hotstar, Amazon, and more. However, the space for free-to-view, ad-supported streaming (FAST) content has also grown via the likes of Samsung TV Plus. Samsung TV Plus India was one of the first markets in APAC to reach over 100 FAST channels earlier this year. FAST and ad-supported streaming is showing no signs of slowing down. Content providers are increasing their portfolios and advertisers are doubling down on their TV advertising investments. Both are seeing the benefits of their invested rupees here. This, in combination with the increasing acceptance of ads on streamed content, has accelerated the growth of FAST.

AR- Can you explain the revenue models commonly used by FAST platforms, and how they impact the availability of free content for viewers?

Kunal- There are three key pillars of FAST – Advertising, Content and distribution. FAST provides content partners with the opportunity to remonetise content and reach new audiences. This new distribution platform is providing content partners another avenue to create ancillary revenue.  However, advertising is where the rubber hits the road with FAST. Where audiences go, advertisers soon follow. More audiences equals more and higher quality content and so on. 

The advertising experience is TV-like. In-stream video advertising breaks, offer advertisers the opportunity to show up on the TV as if they would in traditional linear TV. As FAST channels tend to offer genre or show-specific content, they can offer advertisers contextual placements amongst the most engaged viewers. This creates a win-win. Viewers can tap into very specific sub-genres that they love, en masse, while advertisers access a hugely relevant audience.  

AR- How are traditional broadcasters adapting to the changing landscape of ad-supported television, and what strategies have proven successful?

Kunal- In the US it is reported that news content makes up 18% of all FAST channels, however the genre accounts for over 50% of all ad impressions. News is changing the face of FAST and local broadcasters have innovated quickly in this market. Broadcasters such as Zee News, ABP News, Times, TV9 and TV 18 are delivering curated content that connects with specific audiences on Samsung TV Plus, our free ad-supported streaming TV service.

As a nation, nearly 60% of Indians stated that TV is the preferred news source according to a Reuters study in 2022.  For viewers, it means they can access an even larger plethora of news sources on FAST, particularly from global outlets they may not otherwise have had access to. This is especially important heading into an election year. 

For news broadcasters, it means they can extend the reach of their content to audiences who may have otherwise not been exposed to, especially if those audiences exclusively stream and watch no linear TV. 

AR- How do viewers perceive and engage with advertising on FAST platforms compared to other media?

Kunal- The global Samsung Ads report, Understanding Advertising Engagement across different viewing platform types, allowed us to discover how Indian audiences, as well as global, engage with ads on TV. It showed a high level of ad engagement across the TV landscape. Almost 80% of the Indian audience is happy to pay a small fee in order to access an ad-free experience, indicating viewer frustration when facing ads in high-paying SVOD settings – a format that is only in its infancy in other markets. AVOD/FAST levels of engagement score consistently at 70% of respondents engaging with ads in this setting. The linear ad experience, however, only engages 65% of respondents. 

As with the other regions surveyed, the most significant factor driving Indian audiences to watch ads is if they receive free content in exchange. Four out of five Indians (81%) claimed to be happy to watch ads if this was the case. Similarly, Indian audiences are very willing (80%) to watch ads that are relevant to them. 

AR- What’s the role of personalization and targeting in FAST advertising, and how does Samsung Ads strike the right balance between user privacy and ad relevance?

Kunal- Samsung Electronics is the number one TV manufacturer globally for the 17th consecutive year and families across the world have welcomed Samsung into their homes, as the most important device in their lives.

This trust is crucial to Samsung Ads maintaining the Samsung legacy and is protected and transferred across our entire ecosystem from our physical devices, content portfolio across Samsung TV Plus and the delivery of ads on our Smart TVs – customers are put at the heart of each and every offering. 

Creating beautiful experiences for customers is what builds this trust from the ground up. For consumers, it’s about creating safe and privacy-first experiences on our TVs through our privacy-first app, straightforward and easy-to-navigate systems. Through these various stages, Samsung Ads can ensure every opted-in viewer has an experience that is unique to their preferences. It’s about creating great ad inventory opportunities for advertisers to reach highly engaged audiences that are privacy protected and providing a targeted and tailored TV viewing experience that makes viewers come back time and time again.

Furthermore, personalisation can sometimes take a backseat to context on FAST channels. Look at the earlier mentioned news channels, for example. For advertisers in these localised news settings, it means they’re able to target these informed audiences and understand more about their news-watching behaviours. By showing up here, they are demonstrating their understanding and connection with the consumers and earning increased loyalty. This sort of FAST channel-level targeting, reminiscent of traditional TV targeting methods, caters to advertisers’ need to reach specific demographics and audiences’ desire to access relevant and engaging content.

AR- How do you address concerns about ad fatigue and viewer retention in the context of FAST advertising?

Kunal- The Indian audience demonstrates a mature understanding of the value exchange of viewing ads in return for accessing free content. This is particularly interesting to observe in comparison to other regions across the world. Delivering premium ad experiences to the Indian audience is therefore critical, and can be done by leveraging insights into viewer preferences as well as their perception and overall receptiveness to ads. We know across Samsung Smart TVs, across India, that 79% of total viewership is made up of ad-supported streaming – indicating just how dedicated viewers are to this TV format and how receptive they are to adverts in exchange for free, premium content. 

AR- As consumer behaviour continues to evolve, what trends in content consumption and ad engagement do you find most impactful for the FAST advertising industry?

Kunal- News and sports consumption is skyrocketing, coinciding with the election year and many major sporting events finding their home on FAST, including FIFA+ and PGA Tour. Hyper-localised news is taking center stage, alongside the rise of global services in this free environment, including Bloomberg. 

Shoppable and interactive ads are the up-and-comer ad formats for 2024. These ads allow viewers to engage directly with content and participate in new ways than before including through polls and games, as well as via in-ad purchases – all of which create a more engaging and personalised experience. As Samsung recently discovered, consumers perceive ads within CTV as more ‘premium’, aiding the impactfulness of these emerging formats more than ever before.

AR- Can you share insights into the future of the FAST industry, including potential advancements, challenges, and market growth predictions?

Kunal- With the lower cost of entry in comparison to traditional channels, the future of FAST could be a local one with the ability to create hyper-local or regional offerings. Think regional or local news stations, which were a thing of the past, popping up to give you your local area update. On the flip side, the attraction of FAST is a global one. FAST services and channels offer content producers the opportunity to grow their audiences beyond their home markets.

The FAST proposition was built on beautiful high-quality broadcast content that had been professionally produced. But the rise of the creator and high-quality influencer content could make its way to FAST as well and faster than we may think.

Finally, AI is the topic of many conversations and is one that is also relevant to discussions on the future of TV. With the plethora of channels in FAST, we will see additional layers of AI-powered recommendations, as we do in SVOD. The logical step could be the electronic programming guides (EPG) that most FAST services provide. Secondly, because AI will continue to evolve, it could allow for the creation of FAST playlists or personalised channels. 

AR- What are the biggest challenges and opportunities you foresee for Samsung Ads in the FAST landscape over the next few years?

Kunal- Investment into FAST is only rising. Just as subscription services invested in original content, we could see FAST services produce exclusive shows to differentiate their offering. In order to do so, some FAST audiences would need to scale to warrant the investment. However, we are already seeing the beginning of this in the states with major players leaning in.

Branded content is also expected to create many opportunities for the FAST landscape. When done well, branded content can drive high engagement for advertisers, however content distribution in premium environments can be costly. FAST now offers brands an opportunity to get branded content on the biggest screen in the home. With everything from housing content collections to creating dedicated branded FAST channels, we’re expecting far more ad inventory in this realm.

With this vast array of content coming to the FAST playground, aiding discovery for both consumers and content providers will be our next challenge. This major factor is why our user interface is becoming more personalised to prioritise recommendations for content that will resonate with viewers the most, and sponsored advertising opportunities for advertisers to ensure their content is discoverable.