CTV Lets Brands Personally Connect with Black American Audiences

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Aug 14, 2024 —

LG Ad Solutions, a prominent name in CTV and cross-screen advertising, has unveiled a report titled “The Inclusive Screen: Black Americans.” The findings are based on a survey of nearly 1,500 Black and African American CTV users, highlighting the significant role of Connected TV (CTV) as a key platform for advertisers to connect with Black Americans in meaningful and effective ways.

The research indicates that Black CTV users are notably more proactive after viewing an advertisement. About half visit the advertiser’s website, 29% proceed to purchase the advertised product, and 24% visit a store.

The collective economic power of Black American consumers is anticipated to see a substantial rise—from approximately $910 billion in 2019 to $1.7 trillion by 2030, according to a McKinsey report. This increase underscores the critical need for advertisers to engage with Black consumers thoughtfully and strategically. Brands that successfully reach this demographic can expect significant business growth and stronger brand loyalty.

Monica Longoria, Head of Marketing Insights at LG Ad Solutions, remarked, “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.”

The study also points out the pivotal role of the TV Home Screen as the primary source for content recommendations, with 44% of Black American viewers favoring it. Following that, 41% rely on app homepages, 37% on recommendations from friends and family, and 33% on social media. These insights illustrate the unique chances CTV offers for brands to create genuine connections with Black audiences.

Additional findings from the report include:

• More Relevant Ads in Streaming TV: About 63% of Black CTV users feel that ads on streaming TV are more relevant compared to traditional TV ads, which is 30% higher than the general population. This underscores the advantage for advertisers who focus on inclusive ad campaigns.
• Strong Preference for FAST Channels: 68% of Black CTV users prefer streaming free video content with ads. Moreover, 65% view more than two hours of FAST content per week, a figure that’s 21% higher than the average CTV viewer.
• Subscription App Cycling Remains: A higher percentage of Black CTV users (77%) are likely to sign up for a subscription service and cancel it after consuming the desired content, more so than the average CTV user.

This data offers critical insights for marketers aiming to engage deeply with Black audiences. By recognizing the preferences and behaviors detailed in the report, brands can create more effective and resonant advertising campaigns.

For more detailed information on LG Ad Solutions and to access the full study, click here.

LG Ad Solutions stands out in the global marketplace by assisting brands in finding unduplicated reach at optimal frequency across the fragmented streaming TV landscape. Combining LG’s longstanding expertise in consumer electronics with extensive TV audience data and Video AI, the company connects brands with audiences across all screens effectively.

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Source: LG Ad Solutions, McKinsey