It found that while 18% of consumers have removed a subscription CTV service from the household in the last 12 months and 15% have added a free ad-supported CTV service during the same period, 58% of consumers prefer ad-supported models of CTV. Consumers indicated that a shift to ad-supported will continue as a 20% plan on removing a subscription CTV service in the next 12 months while a 13% plan on adding more free ad-supported services during the same period. Almost two-thirds expressed the desire to trade off less expensive subscriptions for ad inclusion.
When asked which subscription services consumers use, the top three were Netflix (76%), Prime Video (56%) and Disney+ (39%). Almost three-quarters (73%) of consumers said they preferred ads relevant to their interests while 60% preferred ads relevant to the content they are watching. When it comes to streaming ads in particular, almost half (42%) think streaming ads are more relevant and 29% say they pay more attention to them.
The study also revealed that the living room TV is the preferred device across content types apart from social video. 88% of CTV households said the living room is their main TV home screen was important for discovery, and 48% of consumers searched for content to watch directly from the TV’s home screen.
“There have been two recent ‘big shifts’ in Canadian television viewing habits—the first was the rise of subscription-driven connected TV, fueled by rapid adoption related to the initial onset of the pandemic,” said Tony Marlow, Global CMO at LG. Ad Solutions commenting on the study.
And right now, we are in the midst of the second big shift, the adoption of free ad-supported connected TV content. This latest piece of thought leadership shows that most Canadians now both use and prefer ad-supported models of connected TV. This presents an opportunity for marketers to provide better TV experiences for viewers and connect with their audiences on the biggest screen in Canadian homes.”