MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sixty nine percent of CTV users prefer streaming free, ad supported streaming TV (FAST) content instead of a paid subscription without ads, and over half (53%) spend two or more hours per week using FAST applications.
That’s according to a new study released today by LG Ad Solutions, “The Big Shift: Wave III,” which marks the third installment of its annual research series to determine consumer perceptions and behaviors related to CTV.
"Consumers are now overwhelmingly open to ad-supported streaming content, signaling a seismic shift in their CTV habits," said Tony Marlow, CMO at LG Ad Solutions. "Far from the era of passive TV consumption, this latest research gives us a peek into a future where CTV thrives as an immersive, personalized platform. It is now a place where people engage with the personalized content they love and where marketers can connect with those audiences through highly relevant messages. It’s a win-win for the entire ecosystem."
The study, which surveyed over 1,100 U.S. CTV owners, also revealed:
- Time spent searching for what to watch increases: While over half (56%) of U.S. CTV users prefer watching content via streaming applications, it now takes viewers almost 12 minutes on average to decide what to watch, up from 6 minutes the prior year. In addition, over a third (38%) cite too many content choices as their top challenge when looking for content to watch – with 37% stating they can’t remember what platform content is on.
- Content abundance is fueling subscription app cycling: 63% of viewers are likely to sign up for a streaming subscription service to watch specific content and then cancel/pause their subscription after watching.
- CTV users find interactive ads of interest: 42% of viewers prefer ads that have interactive features, with 71% of viewers like TV ad creatives that include a QR code. In addition, 62% are open to scanning a QR code, and 38% are likely to make a purchase after scanning a QR code on a TV ad.
Marlow continued: "As content continues to proliferate across channels and platforms, making content more discoverable through strategies like leveraging the OEM Home Screen will be vital to capture consumer eyeballs. In fact, two in five CTV users already rely on the TV home screen for content recommendations, and we expect that to continue to grow."
For more information on LG Ad Solutions and to download the full study, visit: https://lgads.tv/resource/lp-big-shift-wave-iii/.
About LG Ad Solutions
LG Ad Solutions is a global leader in connected TV and cross-screen advertising, helping brands find hard-to-get unduplicated reach at optimal frequency across the fragmented streaming TV landscape. We bring together LG’s years of experience in delivering world-class smart TVs to consumers worldwide with big TV audience data and Video AI designed to connect brands with audiences across all screens.
