MOUNTAIN VIEW, Calif.—LG Ad Solutions has released a new a report that highlights the importance of black and African American CTV viewers with data showing their purchasing power and a survey that shows they are more likely to take action after seeing a CTV ads.
The report, “The Inclusive Screen: Black Americans,” which is based on a survey of nearly 1,500 Black and African American CTV users, found that CTV (Connected TV) is a pivotal environment for advertisers to connect with Black Americans in personalized and impactful ways.
The study reveals that Black CTV users are more likely to take action after seeing an ad, with nearly half visiting a website, 29% purchasing a product and 24% visiting a store.
The report also cites data showing that black American consumers’ collective economic power is projected to expand dramatically, from about $910 billion in consumption in 2019 to $1.7 trillion by 2030, according to a report by McKinsey.
This substantial buying power highlights the importance of recognizing and engaging with Black consumers in advertising and marketing strategies. Brands that effectively connect with this demographic can tap into a highly influential market, driving business growth and fostering brand loyalty, LG noted.
“As the US continues to become more multicultural, now is the time for marketers to be intentionally inclusive with their advertising strategies. With CTV’s advanced targeting capabilities, brands have the opportunity to market to diverse groups with messages that are authentic and relevant. Our research shows that relevance is key for driving consumer action,” said Monica Longoria, head of marketing insights, LG Ad Solutions.
The study underscores the significance of the TV Home Screen as the leading source for content recommendations, with 44% of Black American viewers preferring it. This is followed closely by app homepages (41%), recommendations from friends and family (37%), and social media (33%). These insights emphasize the unique opportunities within CTV for brands to engage authentically with Black audiences.
The report also found:
- More Relevant Ads in Streaming TV: 63% of Black CTV users find streaming TV ads to be more relevant than traditional TV ads, which is 30% higher than the total population. This further highlights the advantage for advertisers who invest in building inclusive advertising campaigns.
- A Strong Preference FAST Channels: 68% of Black CTV users prefer streaming free video content with ads and 65% watch over 2+ hours of FAST content per week, this is 21% higher than the average CTV viewer.
- Subscription App Cycling Remains: At an even higher rate than the average CTV user, the majority of Black CTV users (77%) are likely to sign up for a subscription service and cancel after watching specific content.
