MOUNTAIN VIEW, California.—LG Ad Solutions has released a new report highlighting the importance of Black and African-American CTV viewers. It includes data on their purchasing power and a survey showing they are more likely to take action after seeing a CTV ad.
The Inclusive Screen: Black Americans report, based on a survey of nearly 1,500 Black and African American CTV users, found that CTV (Connected TV) is a key environment for advertisers to connect with Black Americans in a personalized and impactful way.
The study shows that black CTV users are more likely to take action after seeing an ad: nearly half visit a website, 29% purchase a product and 24% visit a store.
The report also cites data showing that the collective economic power of black American consumers is expected to increase dramatically, from about $910 billion in consumption in 2019 to $1.7 trillion in 2030, according to a McKinsey report.
This significant purchasing power underscores the importance of recognizing and targeting black consumers in advertising and marketing strategies. Brands that successfully target this demographic can tap into a highly influential market, drive business growth and foster brand loyalty, LG said.
“As the U.S. becomes increasingly multicultural, now is the time for marketers to intentionally make their advertising strategies inclusive. With CTV’s advanced targeting capabilities, brands have the opportunity to reach diverse audiences with authentic and relevant messages. Our research shows that relevance is key to driving consumers to action,” said Monica Longoria, Head of Marketing Insights at LG Ad Solutions.
The study highlights the importance of the TV home screen as a leading source of content recommendations, as 44% of Black American viewers prefer it, closely followed by app home screens (41%), recommendations from friends and family (37%) and social media (33%). These findings underscore CTV’s unique opportunities for brands to authentically engage with Black viewers.
The report also found:
- More relevant advertising on streaming TV: 63% of Black CTV users find streaming TV advertising more relevant than traditional TV advertising, 30% more than the general population, highlighting the benefit for advertisers who invest in building inclusive advertising campaigns.
- A strong preference for 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, 21% more than the average CTV viewer.
- App subscription switching persists: Even more likely than the average CTV user, most Black CTV users (77%) sign up for a subscription service and then cancel after watching certain content.