Television fans who watch most of their shows and movies through streaming services crave more ways to buy items from advertising on their smart TV sets, according to a new study released this week.
The findings were outlined in a report issued by LG Ad Solutions called “The Shoppable TV Report: 2024 and Beyond,” in which 53 percent of connected TV users surveyed said they wanted more abilities to buy things through their TV sets when they see advertisements for goods and services that they want.
“While marketers have long understood the impact of reaching audiences via the largest screen of the house, the rise of shoppable ads unlocks an even more direct pathway to consumer,” Ed Wale, the Vice President of LG Ad Solutions in Europe, said in a statement. “The TV experience is no longer simply a passive format that sits outside of other digital channels, becoming highly connected and interactive. This revolutionary development enables marketers to employ a more holistic and connected approach to their campaigns, and offer audiences a more convenient way to shop.”
The study strongly supports recent partnerships between e-commerce and technology providers that aim to integrate so-called “shoppable” ad experiences into streaming video services and platforms. Some companies that are focused on these developments include Roku, Vizio, Amazon, DoorDash, Walmart, Warner Bros. Discovery, Comcast’s NBC Universal, Samsung and LG, among others.
Last month, marketing agency GroupM said connected global TV advertising revenue increased nearly 6 percent in 2023 to $889 billion. While the agency predicts global advertising spend will dip slightly this year, the trend of cord-cutting — consumers moving away from expensive cable and satellite services for cheaper, and sometimes free, streaming services that offer low-cost entertainment with ad interruptions — have marketers looking to capitalize on more than just brand messaging and exposure.
In LG’s survey of more than 1,200 U.S. consumers, 81 percent said TV advertisements influenced their shopping decisions, and 47 percent said they’ve purchased a product or service after seeing it advertised on television. Only 29 percent said they purchased a product or service through an ad on their connected TV sets, with most opting for a phone, laptop or in-store purchase.
In the absence of a connected TV shopping solution, marketers can help increase the chances that a streamer will purchase a good or service if they integrate a Quick Reference (QR) code into their ad, the study found. The majority of streamers surveyed by LG said they liked seeing QR codes in ads, and 49 percent said they were willing to scan a QR code in a TV advertisement if it helped them score a discount.
But the QR code has to appear long enough in an ad for a consumer to scan it: Around 21 percent of consumers said they didn’t scan a QR code with their phone or tablet because the code didn’t appear on TV long enough for them to do it.
“The study’s finding that relevance is consumers’ overwhelming impetus behind scanning or purchasing after seeing a TV ad, highlights advertisers’ need for accurate audience targeting,” Tony Marlow, the Chief Marketing Officer at LG Ad Solutions, said this week. “Marketers need to take advantage of niche audience datasets, such as consumer purchase and ACR segments…to create personalized and interactive shoppable ad experiences within CTV environments that will drive better engagement and outcomes for both advertisers and consumers.”
The full report from LG Ad Solutions is available to view by clicking or tapping here.
