More consumers willing to tolerate ads than pay for streaming: LG study

Another study has revealed that connected TV users prefer free ad-supported streaming TV rather than shelling out a monthly fee for their entertainment while also revealing interesting insight into preference on interactive advertising. 

In fact, 69% of CTV users in the study said they would rather use a FAST instead of gaining an ad-free experience but at a cost. 53% of them also spend two or more hours each week viewing content via FAST providers.

The study, titled “The Big Shift: Wave III,” is the third in a series of annual studies LG Ad Solutions has conducted. 

“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, in a statement. “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.