With 79% of U.S. households owning a Smart TV, these devices have become the primary platform for consuming various types of content, including streaming, linear TV, gaming, shopping, fitness, and more, according to LG Ad Solutions’ latest report, “The Connect Effect.” This shift provides brands with unique opportunities to connect with viewers across multiple touchpoints, thereby boosting the overall impact of their advertising campaigns.
Key findings show that viewers engage heavily with native ads on Smart TV home screens, spending an average of 7 seconds (or 14% of their screen time) on them. Eye-tracking revealed that adding a video component to native ads increased viewer engagement by 132%, while the addition of a QR code increased engagement by 46%. Native ads were found to triple the likelihood of brand recognition compared to non-exposed viewers.
For streaming content, 42% of TV viewing is unplanned, and it takes an average of 12 minutes for viewers to decide what to watch. Although viewers split their time between streaming and linear content, streaming-only viewers now make up 43% of the audience. The study found that brands incorporating CTV video into their strategies reach the 70% of TV viewers who regularly watch ad-supported content via Connected TVs. Furthermore, combining native and mobile video elements with CTV video reduced perceptions of ads being intrusive or annoying, while boosting brand performance.
Another crucial insight is the role of mobile devices. Multitasking is pervasive, with 93% of viewers using other devices while watching TV, and 71% of viewers are constantly holding their phones. Although mobile video ads receive less visual attention than TV ads, they perform comparably in terms of brand recall.
The study concludes that campaigns incorporating CTV video, native advertising, and mobile video lead to better results, including a 4.7x lift in brand awareness, 11.2x lift in brand consideration, and 8.7x lift in ad recall, all while reducing the cost per visit by 23%.
The transformative power of Smart TVs and connected devices in shaping both viewer experiences and advertising strategies. By integrating CTV video, native ads, and mobile video into cohesive, multiplatform campaigns, brands can significantly enhance their reach, engagement, and overall performance. The findings emphasize the importance of strategic, cross-platform advertising that aligns with how modern consumers interact with content. As brands continue to evolve their marketing efforts in this connected ecosystem, leveraging the insights from this report will be key to maximizing brand awareness, consideration, and long-term success.
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