Data: Connected Brits shifting to AVoD
October 13, 2022
To determine consumer perceptions and behaviours related to Connected TV (CTV) as the medium continues to take off, LG Ads Solutions, the CTV and cross-screen media company backed by LG Electronics, conducted an online survey of over 1000 UK consumers in October 2022.
Among the findings:
- Netflix is still king: When asked which subscription services consumers use, the top three were: Netflix (86 per cent), Prime Video (64 per cent) and Disney+ (60 per cent)
- Ad-Supported CTV is the most preferred: 71 per cent use ad-supported models of CTV with 68 per cent preferring those models. In fact, 23 per cent of consumers have removed a subscription CTV service from the household in the last 12 months while 12 per cent have added a free ad-supported CTV service during that time.
- This shift to ad-supported will continue: 25 per cent are planning on removing a subscription CTV service in the next 12 months while 14 per cent are planning on adding further free ad-supported CTV services during that time. In fact, 68 per cent of consumers express that they will trade off less expensive subscriptions for ad inclusion.
- Targeting on Content vs Interest: 78 per cent of consumers express that they prefer ads relevant to their interests while 71 per cent prefer ads relevant to the content they are watching. When it comes to streaming ads in particular, over half (53 per cent) think streaming ads are more relevant and 36 per cent say they pay more attention to them.
- Homescreen is important for discovery: 53 per cent of consumers search for content to watch directly from the TV’s native homescreen
- Multi-tasking is common: 95 per cent multitask with mobile/laptop when watching TV and 30 per cent always multitask.
- CTV is cannibalising Linear TV at a steady rate: 13 per cent are watching less linear TV compared to a year ago.
“There have been two recent ‘big shifts’ in television viewing habits,” said Tony Marlow, Global CMO at LG Ads Solutions. “The first big shift was rapid adoption of streaming content on connected televisions, fuelled 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. 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.”