LG Ad Solutions, a specialist in connected TV and cross-screen advertising, has published a report entitled The Inclusive Screen: Black AmericansThe report, based on a survey of nearly 1,500 Black and African American CTV users, concludes that CTV is a key environment for advertisers to connect with Black Americans in a personalized and impactful way.
The study found that black CTV users are more likely to take action after seeing an ad: nearly half visited a website, 29 percent purchased a product and 24 percent visited a store.
According to a report by McKinsey, the collective economic power of black American consumers is expected to increase dramatically, from approximately $910 billion (€826.8 billion) in consumption in 2019 to $1.7 trillion in 2030. This significant purchasing power underscores the importance of recognizing and targeting black consumers in advertising and marketing strategies. Brands that effectively target this demographic can tap into a highly influential market, drive business growth and foster brand loyalty, suggests LG Ad Solutions.
“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, LG Ad Solutions.
The study highlights the importance of the TV home screen as the primary source of content recommendations: 44 percent of Black American viewers prefer it, closely followed by app home screens (41 percent), recommendations from friends and family (37 percent) and social media (33 percent). 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 percent of Black CTV users find streaming TV ads more relevant than traditional TV ads, 30 percent more than the general population, underscoring the benefit for advertisers who invest in building inclusive advertising campaigns.
- A strong preference for FAST channels: 68 percent of Black CTV viewers prefer streaming free video content with ads, and 65 percent watch over 2 hours of FAST content per week, 21 percent more than the average CTV viewer.
- Subscription app Cycling remains: Even more likely than the average CTV viewer, the majority of Black CTV viewers (77 percent) are likely to subscribe to a service and then cancel after viewing certain content.
