CTV Ads Outperform: Streaming Ads More Relevant
The digital advertising landscape is evolving, and Connected TV (CTV) is leading this transformation. A new report from LG Ad Solutions, “The Inclusive Screen: Asian Americans,” highlights how effective streaming ads are in engaging diverse audiences. The study shows that 70% of Asian Americans feel CTV ads are more relevant than traditional TV ads—45% higher than the general population. This shift in consumer behavior, especially within key demographic segments, reflects the growing importance of personalized advertising.
Why CTV Ads Are More Effective
The success of CTV ads among Asian Americans aligns with industry trends showing that streaming platforms offer more precise targeting. With CTV, brands can tailor streaming ads to viewers based on their behavior, interests, and content preferences. In contrast, traditional TV relies on broader audience segments and lacks the flexibility to adjust ads dynamically.
According to the LG Ad Solutions report, 54% of Asian Americans say they pay more attention to ads on CTV platforms—61% higher than the general population. Streaming services allow brands to reach viewers in a more personalized way, leading to better engagement and more effective ad campaigns.
CTV Viewers Are More Engaged
The report also highlights multitasking behavior among CTV viewers. While watching content, 96% of Asian CTV users engage in secondary activities like using social media (55%), messaging (55%), gaming (49%), and shopping (44%). This creates unique opportunities for brands to engage viewers across multiple devices. For example, a viewer may see a CTV ad while browsing social media on their phone, providing a cross-platform experience that enhances the ad’s impact.
These multitasking habits are not limited to Asian American viewers. According to a 2023 Deloitte report, 87% of U.S. consumers engage in some form of second-screen behavior while watching TV. This trend further reinforces the need for cross-screen advertising strategies that capture attention across multiple touchpoints.
The Shift Towards Ad-Supported Streaming
The study reveals that 75% of Asian American CTV users prefer ad-supported streaming content over paying for an ad-free subscription. This is part of a broader shift towards free, ad-supported content, as seen with platforms like Pluto TV, Tubi, and Amazon’s Freevee. According to eMarketer, ad-supported video-on-demand (AVOD) services are projected to grow by 12% in 2024, attracting more viewers who are opting out of traditional subscription models.
For brands, ad-supported platforms offer a strong opportunity to reach engaged audiences at scale. Additionally, 47% of Asian Americans reported visiting a website after seeing streaming ads, showing that CTV ads are not only more relevant but also more actionable.
Reaching New Audiences Through CTV
The insights from LG Ad Solutions’ “Inclusive Screen” report are essential for marketers looking to engage diverse audiences effectively. While word of mouth remains a key source for content discovery among Asian Americans (44%), app homepages (42%) and TV home screens (39%) are also important for discovering new content. The CTV home screen is valuable real estate for brands looking to drive engagement and awareness.
As Monica Longoria, Head of Marketing Insights at LG Ad Solutions, pointed out to Street Fight, “Our goal with the Inclusive Screens series is to provide marketers with the insights they need to reach and engage diverse audiences through meaningful advertising experiences that drive connection. TV is for everyone – and the time is now for marketers to be intentionally inclusive with their TV and video strategies.” Understanding audience preferences is critical for delivering successful campaigns as consumer viewership shifts toward ad-supported streaming.
The Growing Importance of CTV in Advertising
As CTV continues to expand, its role in the advertising ecosystem will grow. According to a report from the IAB, CTV ad spend in the U.S. is projected to reach $25.9 billion by 2024, reflecting the increasing use of streaming platforms by both consumers and advertisers. The relevance of streaming ads, as demonstrated in the LG Ad Solutions study, underscores the need for marketers to optimize their campaigns for this medium.
The “Inclusive Screen: Asian Americans” report is a valuable resource for brands looking to understand and connect with a diverse audience through CTV advertising. As consumer behavior evolves, streaming platforms offer the perfect medium for delivering relevant, personalized ads that resonate with viewers across various demographics.
