Where Are We With Consumers and CTV? Because It Keeps Changing

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A massive 93% of US internet users are reachable by Connected TV (CTV) as households continue to shed subscription services and linear TV for ad-supported TV and FAST channels finds TV maker LG in a new report from the advertising division.

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CTV adoption continues to skyrocket since the early days of the pandemic which drove rapid adoption through 2020. Progressing through 2023, consumer behaviors will continue to shift as CTV preferences have changed.

The new LG Ads Solutions survey, “CTV: The Big Shift,” investigates CTV usage and preferences amongst US internet users.

Firstly, CTV owns the living room with reach near saturation. Only 7% of US internet users do not have access to CTV while 80% of CTV households say the living room is their main TV.

Yet consumer CTV preferences are shifting: 30% of households have removed an SVOD from their CTV in the last year and a quarter have added a free ad-supported services in that time.

This trend will likely continue with 31% stating that they will remove subscription CTV services by this time 2023 and another 23% will bolster their viewing by adding a free (FAST or Ad-Supported) channel.

According to LG, viewers overwhelmingly support the idea of ad-subsided subscriptions. Seventy-six percent will trade off less expensive subscriptions for ad inclusion.

In other findings, over one-third say they discover CTV content from the TV’s home screen and 21% are watching less linear TV than 12 months ago. This prompts LG to conclude that CTV is cannibalizing linear TV at a steady rate.

Of note for advertisers is that viewers seem to enjoy multi-tasking in front of the big screen, so it’s important for advertisers to take a multi-screen approach to the ad campaign.

“There have been two recent ‘big shifts’ in television viewing habits,” Tony Marlow, global chief marketing officer for LG Ads, says. “The first big shift was rapid adoption of streaming content on connected televisions, fueled in-part by stay-at-home guidance at the onset of the pandemic. This first shift was underpinned by subscription-based video content. The second big shift is underway right now. 

“Consumers are drifting away from some of their CTV subscriptions and increasingly preferring free content that is supported by ads,” he continues. “This presents an opportunity to provide better CTV experiences for viewers and opportunities for marketers to connect with their audiences on the biggest screen in the home.”