LG Ad Solutions' survey on CTV ads: an eye-opener for brands?

Published: July 28, 2023

min read

With the increased adoption of connected TV (CTV) and over-the-top (OTT) platforms among audiences, a significant number of brands in the market are invariably increasing their ad budgets for streaming media. With which we could see an increasing number of collaborations and innovations in this space. Needless to mention, the connected TV ad tech company Brightline’s launch of a new product that allows streamers to add interactive ads to the live broadcasts on the streaming apps

And recently, LG Ad Solutions released the results of a new study, which discovered that 84% of Canadian audiences like enhanced ads and that over half (52%) will engage with them. Connected TV ads, which incorporate dynamic QR codes, modify messages depending on the time of day, are location-specific, or use weather conditions to trigger pertinent creative, are the enhanced ads.

To put it in detail, in February 2023, LG Ad Solutions surveyed over 650 Canadian consumers who had a connected TV to better comprehend the importance of enhanced ads as well as viewer preferences and attitudes regarding them. The study also discovered:

One in every two audiences is inclined to interact with weather-triggered enhanced ads, and 69% like the idea of weather-related ads.
78% of audiences prefer ads that are about nearby store locations. Furthermore, one in every three viewers is likely to favour local extension-enhanced ads.
The lowest level of engagement was 43% for enhanced ads with QR codes, indicating that QR codes without a clear call-to-action struggle with engagement. However, when done correctly, one in every three viewers is likely to favour QR-enhanced ads and purchase brands that use QR-enhanced ads.
62% prefer interactive ads, while 77% opt for ads that take into account the context in which the ad is being watched.

What do the new findings mean for CMOs?

While CTV advertising can offer various benefits for brands, it is still a relatively immature channel with risk factors. Needless to mention the report from analytics firm DoubleVerify, which shows bot fraud on connected television increased 69% year over year.

On the other hand, with the explosion of its popularity, many streaming platforms, like Disney Plus and Netflix, introduced an ad-supported tier, so that the competition in the streaming space and the ad cost are remarkably mounting. It in turn puts marketing teams under tremendous pressure to meticulously monitor their budgets and find ways to reduce unnecessary expenditures and maximise conversions.

At this point in time, it is critical for brands to pay attention to new findings in this space so as to optimise their campaigns accordingly. In that regard, we believe the study results from LG Ad Solutions can contribute to bridging the gap for brands and putting them on track to attain their desired outcomes.

As audiences embrace enhanced ad formats the most, brands must begin exploring the various possibilities of this ad format going forward. For instance, brands can incorporate dynamic QR codes at higher rates than before in various ways so as to encourage interactive experiences for audiences. Particularly by making those campaigns relevant and location-specific for audiences, brands will be more likely to boost the engagement rate and conversions.
The findings show the majority of Canadian CTV audiences prefer Contextual advertising. It signals brands to focus on aligning their enhanced ad content with the audience's real-time context. That is, brands can choose to run ads for ice cream and milkshakes during summer days, location-specific ads at the time of local events, etc. This way, they can increase the likelihood of capturing viewers' attention and urging them to take action.

Having said that,

Brands must not overlook setting up robust measurement and attribution systems, as it is the primary key to precisely understanding the impact of the campaigns, be it what types of messaging or creatives work well among their target segments. Besides, it will help them understand the current trends and the audience preferences so as to tweak the campaigns accordingly to evolving trends, allocate resources more efficiently, and make the campaign cost-effective.
Brands must also be ready to experiment with new ad formats and technologies and make new collaborations so as to remain relevant, engage, and stand out in this competitive, ever-evolving advertising landscape. On the other hand, they should also be careful when it comes to striking a balance during implementation so as to avoid overwhelming audiences with excessively enhanced ad experiences or being intrusive in front of consumers.

Overall, without any doubt, the new findings assist brands with a market base in Canada in assessing the kinds of strategies on which they should focus more in order to improve engagement and conversions in CTV advertising. Now it is only up to brands and marketing teams to take a call.

Author

Bill Walker

Bill is a marketing strategist who believes in the power of storytelling. He's known for his creativity, wit, and ability to connect with audiences across all channels. When he's not crafting marketing campaigns, you can find him hiking in the mountains or reading a good book.