Survey says… shoppable ads are in, but innovation is still sorely needed

As TV viewing shifts toward AVOD and FAST channels, more advertising opportunities are available on CTV, including shoppable ads. According to LG Ad Solutions, 66% of CTV viewers have seen an ad with a QR code – and they like it. LG’s research was conducted this past December and shows that nine in 10 consumers use an internet-connected TV, with 78% of CTV users regularly viewing FAST channels. In fact, 59% say they prefer free-streaming with ads over paid streaming services. The ads that air on AVOD channels are influencing the shopping decisions of 81% of CTV users, with 63% saying they discover new brands and products through TV ads, and 47% making a purchase after seeing an ad in the last three months. Although a relatively new format, shoppable ads are already making an impact, according to LG. The research found that 70% of CTV users like TV ads with QR codes, especially if it includes a discount. Nearly half of survey participants (49%) say they scan a QR code specifically to get a discount code. Additionally, 62% say they would scan a code in an ad if exposed to it, 48% have scanned at least one, and 38% are likely to make a purchase after scanning a code on a TV ad. The top categories of QR ads scanned are clothing, electronics, automotive, appliances and grocery/consumer goods. CTV users are purchasing products seen in TV ads but are primarily making the purchases via mobile, as 71% of CTV users are always holding their phones while watching TV. Their purchase methods after seeing an ad on TV in the past three months vary, with 56% using their mobile phone, 45% a laptop or desktop, 31% in-store, 31% by tablet, and 29% directly via connected TV. A little more than half (51%) of those surveyed want to be able to shop directly through their TV. In addition, 53% wish all TV ads had a quick buy option and 63% would like to see store or brand inventory on their TV. Relevance is the main motivation behind scanning or purchasing after seeing a TV ad, highlighting the importance of accurate audience targeting. To get consumers to respond to shoppable ads, brands need to overcome the reasons why they don’t scan QR codes – such as they’re not interested in the product (70%); the ad didn’t appear for long enough (21%); their phone or tablet was out of reach (13%); they don’t know how to scan (10%); and the ad didn’t include a discount code or offer (8%).