The Chaotic Universe of AVOD, FAST, and CTV Ads in APAC

Welcome, dear reader, to the labyrinthine world of video advertising in the APAC region. Imagine you're at a grand buffet—but instead of food, it's a chaotic spread of Ad-Supported Video on Demand (AVOD), Free Ad-Supported Streaming TV (FAST), and CTV (Connected TV) channels all vying for your attention. As you step in, every dish (service) has a complex recipe involving the region's love for mobile devices, the cost of content, and a mix of local flavors provided by OEMs like Samsung, LG, and their competitors. Grab your tray and join me as we dive into this intricate and ever-changing ecosystem.

The Great Device Divide: Mobile Reigns Supreme

Let's kick things off with a seemingly simple but in reality, mind-bogglingly complex situation: the dominance of mobile devices for OTT (Over-the-Top) content consumption in APAC. Picture a market where most people treat their TV as a decorative piece, a cultural artifact. Why? Because content comes to life in the palm of their hands.

Imagine this scene: In India, a bustling commuter—let’s call him Rajesh—is streaming cricket on his $120 mobile phone while a family TV set gathers dust at home. It turns out, the good ol' smartphone is an MVP, providing independence, privacy, and a price that won’t dent the wallet compared to that $300 CTV screen. In a country where households usually have just one TV for an entire family, mobile devices give everyone their own entertainment oasis.

FAST vs. AVOD: The Content Battle Royale

FAST and AVOD are like two distant cousins—they both come to your party, but they wear very different outfits and bring entirely different vibes. AVOD is the cool cousin who charges a bit for extra features but also lets you hang out for free if you’re willing to watch some ads. FAST, on the other hand, is the old-school cousin: the one that brings linear TV content to your party, but sprinkles in some ads to keep it free.

In the U.S., FAST is already the popular choice at the party—imagine Pluto and Tubi playing DJ and everyone loving their tracks. But in APAC, FAST is just getting started. It's that cousin who’s still figuring out if people actually like him or not. Turns out, people in India and Southeast Asia still prefer AVOD—over 85% of content consumption happens on mobile devices, and AVOD is the more easily digestible choice for them.

OEM Players: The Hardware Guys Trying to Play Software

Ah, OEMs—like Samsung TV Plus and LG Channels—they’re those hardware-focused cousins who suddenly want to join the software dance floor. Samsung TV Plus is present in APAC, but with a limited footprint and a pretty niche audience. Imagine Samsung standing awkwardly in the middle of a dance floor, unsure whether to focus on user engagement or just hold the wall up.

The key here is that OEMs are hardware-first companies trying to dance in a software-first space. Their experience is like learning choreography from YouTube—it looks decent, but when the performance day arrives, they just don't have the same finesse as Netflix or YouTube themselves. It’s tricky, and their strategy to win is to rely on the audience they already have—if you own a Samsung TV, then it’s Samsung TV Plus for you. Sounds simple, right? Except there’s a catch: the content they acquire is often not as juicy as what’s offered by dedicated streaming platforms.

Market Trends & The Crystal Ball Prediction

Let's squint into the crystal ball and try to predict how all this will evolve over the next three to five years. For starters, FAST is projected to grow in line with CTV penetration. CTV adoption in APAC is still relatively low, but it’s growing steadily—driven by younger consumers who are open to new experiences and hungry for better content at cheaper rates.

Australia, South Korea, and Japan are showing signs of CTV growth that look almost U.S.-like, with CTV penetration reaching nearly 50%. This means that OEMs are slowly gaining ground, but still miles away from capturing that top-tier content that would make them truly competitive. FAST in these regions might eventually dethrone AVOD—but not until they figure out how to make their content as appealing as Rajesh’s $120 cricket-streaming mobile experience.

Advertisers: Navigating Complexity in APAC

What’s in it for the advertisers? Advertisers in APAC are figuring out how to run ads on CTV with a fraction of the population using those devices compared to mobile. The advertiser’s dilemma is simple—reach or prestige? You want to reach Rajesh's mobile, because there are millions of Rajeshs out there. But you also want to look classy on that big-screen Samsung CTV, making sure you’re not just "in the game" but also "at the ball."

And the solution for now? Mostly direct sales because programmatic is like that trendy item everyone wants, but no one really understands fully in APAC. Self-serve ads on YouTube are gaining some traction, but FAST and CTV are far from being entirely programmatic—it’s still about pounding the pavement with direct negotiations and relationship building.

Conclusion: It's a Rollercoaster

AVOD, FAST, CTV—these are not just acronyms; they are the puzzle pieces of a complex landscape influenced by culture, economics, and consumer behavior. Mobile is still king in APAC, but CTV and FAST are not giving up; they are the young contenders, ready to make their mark if given the right incentives. For now, advertisers, OEMs, and platforms are all at the party, figuring out how best to stand out while competing against that old, familiar cousin—mobile streaming—who's been there since day one.