Streaming ads outperform traditional TV in relevance for diverse viewers, LG study finds

LG Ad Solutions has released a study examining the streaming habits and advertising preferences of diverse audiences in the United States, finding that connected TV remains a preferred medium for personalized and culturally relevant content.

The “2025 Inclusive Screen” report analyzed the behavior of Black, Hispanic, Asian and LGBTQ+ viewers and found that the majority prefer streaming over traditional television. Free ad-supported streaming television (FAST) services are favored over subscription models by a wide margin across all four demographic groups.

According to the study, 64 percent of Black and Asian viewers, 63 percent of Hispanic viewers and 57 percent of LGBTQ+ viewers said they prefer streaming. Among those groups, 74 percent of LGBTQ+ viewers, 73 percent of Asian viewers, 72 percent of Black viewers and 68 percent of Hispanic viewers said they favor FAST platforms over subscription-based services.

The report emphasizes that relevance is a key factor in advertising engagement. For example, 72 percent of Black CTV viewers said they prefer ads that are tied to the content they are watching, 22 percent higher than the general population. Similarly, 70 percent of Hispanic viewers said they prefer ads relevant to their interests.

Monica Longoria, head of marketing insights at LG Ad Solutions, said personalization is now an expectation. “Diverse audiences want more control, easier discovery and advertising that reflects their interests and identities,” she said in a statement.

The study also found that the television home screen plays a central role in content discovery. On average, diverse viewers spend 14 to 18 minutes deciding what to watch, with the home screen serving as the primary discovery method for Black audiences and the second-most used for Hispanic, Asian and LGBTQ+ audiences.

Advertising on CTV platforms also drives consumer action, according to the report. Black viewers are 52 percent more likely than the general population to make a purchase after seeing a CTV ad and 22 percent more likely to visit a brand’s website. In general, viewers in the four surveyed groups were more likely to visit websites, search for products, and discuss ads after viewing them.

Representation in content also plays a key role. Eighty-five percent of LGBTQ+ viewers said they are more likely to watch shows or ads that feature people who reflect their identities.

Advertisement

The report concludes that CTV’s targeting capabilities, combined with the scale of television, provide an environment where advertisers can deliver personalized messaging to diverse audiences more effectively than on traditional platforms.