By Tony Marlow, CMO at LG Ad Solutions
Advertisers are readying for a complex holiday season this year, as consumers watch their wallets in a rapidly evolving economic climate. According to the latest update from McKinsey, US consumer sentiment is cautious, with many shoppers planning to start gift-buying early (in October) and some planning cutbacks.
The outlook, however, is mixed. In an economy that is both diverse and resilient, 65% of high-income consumers plan to spend the same or more compared to last year (McKinsey). And shoppers – particularly millennials, Gen X and baby boomers – are likely to prioritize gift-giving, even if it puts pressure on their budgets (PwC).
What this means for marketers is that every ad dollar counts. Their mission is not to reduce ad budget (a move that typically damages brand awareness, even during tougher market conditions) but instead sharpen their focus. And part of this effort involves zeroing in on the rich opportunities of shoppable CTV.
Meeting consumers where they are
The reason is simple: increasingly, US consumers are looking at their home screens and favorite shows as a source of gift inspiration. A recent survey from LG Ad Solutions shows that 59% of CTV viewers think TV ads are helpful for inspiring holiday purchases; a giant 73% YoY leap from 2024 figures.
Meanwhile, 36% say they get gift ideas from TV and streaming ads – a statistic that is fast catching up on the gift appeal of social media ads (at 38%). In addition, nearly all viewers (89%) want CTV holiday ads to offer specific deals or promotions. And, in an online shopping world that’s changing fast, the study also identified a 105% YoY increase in CTV viewers who find home screen holiday ads helpful.
This is a platform where second-screen usage is almost universal, leading experts to believe that around 108 million people will be making purchases via shoppable media by the year 2027. Couple this with a few other salient facts – CTV now accounts for more than 43% of overall TV time in the US, with free AVOD platforms set for a huge increase in viewership – and the potential for holiday reach is clear.
Shoppable innovation
This surging demand coincides with the expectation of instant, friction-free shopping. In today’s CTV landscape, nearly two-thirds of viewers are willing to save their shipping and payment details on their TV, in exchange for a swift checkout. A further 71% like holiday shopping TV ads that are personalized to their preferences. Fluent in digital multitasking, this is an audience that is happy to blur the line between entertainment, shopping and advertising for the sake of convenience.
Brands, in turn, can use Automatic Content Recognition (ACR) data to meet this need. This creates the potential to serve customised content based on nuances such as location or time of day – then optimise that content using real-time attention insights.
It’s a technical maturity matched by growing levels of format creativity in CTV. From scannable QR codes to 3D native home screen formats, marketers now have a showcase of features to choose from. These experiences are fun, interactive and scalable; particularly when it comes to special or one-off promotion events e.g. Black Friday.
The right time and place
With 39% of total planned holiday gift spending predicted to happen in the five-day period between Thanksgiving and Cyber Monday this year (PwC), there’s no better time to harness shoppable CTV.
Brands should seize the moment, using a combination of standout visuals, discounts and smart targeting to capture the attention of at-home shoppers. This process can begin from when a consumer switches on their TV, with compelling home screen placements that evolve into screensaver ads, product demonstrations or gamified elements – all aimed at enhancing the discovery and personalization journey.
When you can serve tailored content to the right audiences at the right time, direct to their homes, the opportunities are endless. Shoppers have everything they need to make quick, effective purchases; especially if holiday campaigns begin early, on the runup to the Thanksgiving rush.
Holiday shopping, reimagined
Fiscal uncertainty is a theme for this year’s holiday season, but so too is purpose and intent. Mindful of their finances, consumers will be more discerning about how and why they buy. That makes the timing and placement of gift inspiration more important than ever.
While in-store Christmas shopping will always appeal, new data points to a burgeoning at-home audience; a powerful subset of consumers who want shopping ideas as they browse their next TV fix. And the overlap between content and commerce on smart TVs means that they are uniquely placed to deliver on this emerging trend.
The challenge for marketers is to ride the wave, using personalized, shoppable CTV to capture attention within a high-growth vertical. Ads should be interactive, creative and intelligent, leveraging the latest tech to tailor experiences based on context – for on-point timing and delivery. Get these steps right, and brands can maximise CTV inventory in a holiday season where everything’s to play for.
