Consumers are cutting back on subscription streaming services and seeking out free, ad-supported content, according to a survey from LG Ad Solutions.
LG, which says it surveyed 750 U.S. consumers in March, found that 46% of viewers have canceled a streaming service to save money and 59% said they were willing to cancel a subscription after finishing the content they wanted to see.
At the same time, the study found that 63% of consumers prefer to stream free content rather than pay for a subscription. Asked about the next 12 months, 32% of consumers said they will remove a subscription connected-TV service and 21% will add additional free, ad-supported CTV services.
The shift of viewers to ad-supported CTV should be a positive for marketers because 39% of viewers said they have searched online after seeing a CTV ad and 37% said they’d visited an advertiser’s website.
Also Read: LG Ads Solutions Guarantees Outcomes for Ads on CTV
“As consumers increasingly move to free, ad-supported services, this next phase of TV will be defined by both content and experience,“ LG Ad Solutions chief marketing officer Tony Marlow said. ”This means not only do streamers need to promote their content to lure overwhelmed consumers in, but they also need to have enough to keep them engaged and on the app or channel.
“Additionally, advertisers must prioritize relevant ad targeting — as nearly three in four viewers want ads relevant to their interests — and working with partners that provide adequate frequency capping to ensure a good consumer experience,” Marlow said.
LG Ad Solutions also found that nearly half of the viewers who get their content through streaming don’t know what they want to watch when they turn the TV set on, and it takes 5.7 minutes on average to make a decision. Among consumers who know what they want to watch, 40% are confused about where to find their show.
"This presents a great opportunity for streamers to leverage smart-TV homepages for content discovery,” Marlow said. “Our data indicates that 39% of viewers have used recommendations from their TV’s homepage when they’re looking for something new to watch — and we anticipate that number to increase as smart-TV adoption continues to climb. The home screen is the new center of the CTV experience where consumers can search for specific content and find recommendations when they aren’t sure what they want to watch.”
