LG Ad Solutions The Big Shift: Wave III study shows that a majority (69%) of connected TV users prefer streaming FAST channels instead of paid subscription services without ads, with 53% spending two or more hours a week with FAST content. The Big Shift: Wave III is the third installment of LG Ad Solutions’ annual research of consumer perceptions and behaviours related to connected TV (CTV). The research was conducted via an online panel of nearly 1,200 connected TV users in North America.
More than half of CTV viewers (56%) prefer to watch TV via streaming apps and cite more control because they watch at their own pace (79%) plus more content options (62%) for this preference. Other reasons include exclusive content (40%), cost effectiveness (39%), fewer ads (39%) and the ability to watch recently released movies (37%).
Content discovery is now an issue for CTV viewers with time spent searching for what to watch increasing. It now takes CTV viewers in the U.S. nearly 12 minutes to decide what to watch, up from six minutes the previous year – with the number of streaming apps installed per TV now over seven. More than one-third of CTV viewers (38%) say that too many content choices is their top challenge when looking for programming to watch, and 37% say they can’t remember what platform content is on. Two in five CTV users (39%) rely on the TV home screen for content recommendations with 44% citing word of mouth recommendations. Social media ads provide recommendations to 25% and TV ads influence 23%. The majority (68%) use the TV’s built-in search functions for navigation and exploration.
With the increased preference for FAST channels, CTV users are adding free ad-supported TV apps and reducing subscription apps. A vast majority (80%) of viewers prefer ad-subsidized streaming subscriptions and paying a lower cost in exchange for some ads. In the past 12 months, 34% of viewers have added a subscription streaming service, 26% have added a free streaming service. Those removing a subscription service increased 9% YoY to 32% while only 9% say they have removed a free streaming service. In the next 12 months, 25% of CTV viewers expect to add a subscription streaming service and 27% expect to add a FAST service. At the same time, 31% plan to remove a subscription service.
CTV users find interactive ads of interest: 42% of viewers prefer ads that have interactive features, while 71% of viewers like TV ad creative 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. Three quarters (75%) of viewers prefer ads that are relevant to their interests, 65% prefer ads relevant to the content, and 49% believe streaming ads are more relevant than traditional TV ads. A third (33%) say they pay more attention to ads on streaming TV with 42% visiting a website after seeing an ad, 36% search for a product online, and 22% bought a product. Multitasking while watching TV continues to be a habit with 93% if viewers. They are messaging (56%), shopping online (45%), browsing social media (45%) or playing games (44%).
