69% of connected TV (CTV) users opt for streaming complimentary, ad-supported streaming TV (FAST) content instead of a paid subscription devoid of advertisements. Over half (53%) dedicate two or more hours weekly to engaging with FAST applications, as revealed by a recent study unveiled today by LG Ad Solutions titled 'The Big Shift: Wave III.' This marks the third edition of their annual research series, aiming to ascertain consumer perceptions and behaviors concerning CTV.
Ed Wale, VP International at
LG Ad Solutions, remarked, "The surge in Smart TV adoption to an impressive 74% in the UK underscores the merging of accessible streaming options and state-of-the-art technology, fundamentally altering content consumption patterns. This dynamic scenario presents advertisers with a prime opportunity to leverage the extensive reach of Smart TVs across the diverse CTV landscape and global boundaries."
The investigation, encompassing over 1,100 US CTV proprietors, also unveiled:
1. Time spent searching for what to watch increases: Among US CTV consumers, more than half (56%) favor accessing content through streaming apps. However, the time taken for viewers to decide what to watch has nearly doubled from the previous year, now averaging almost 12 minutes. Moreover, over one-third (38%) identify an abundance of content choices as their primary hurdle when seeking something to watch, with 37% expressing difficulty recalling the platform where content is available.
2. Content abundance is fueling subscription app cycling: A significant 63% of spectators show a propensity to subscribe to a streaming service to access particular content and subsequently terminate or suspend their subscription upon completion of viewing.
3. FAST content consumption is speeding up: CTV users find interactive ads of interest: Of the audience surveyed, 42% express a preference for advertisements incorporating interactive elements, while 71% favor television ad campaigns integrating QR codes. Furthermore, 62% exhibit willingness to engage with QR codes, and 38% indicate a likelihood of making a purchase subsequent to scanning a QR code featured in a TV commercial.
"As content proliferates across various channels and platforms, enhancing discoverability through approaches such as utilizing the OEM Home Screen will be crucial in attracting consumer attention," remarked Tony Marlow, Chief Marketing Officer at LG Ad Solutions. "Indeed, forty percent of CTV users presently depend on the television home screen for content suggestions, and we anticipate this trend to further expand."
