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LG and Samsung square off in the booming CTV ad market

The news: The connected TV (CTV) ad market is experiencing a significant surge, captivating both attention and ad budgets.

  • One of the fastest-growing advertising avenues, particularly in the US, CTV has become an indispensable domain for advertisers—and a battleground for legacy smart TV players like LG and Samsung to expand their presence.
  • While Samsung's innovations drive TV advertising from a passive medium to interactivity, LG's endeavors emphasize precision and data-driven strategies.

Direct connections: Samsung Ads, in collaboration with the CTV ad experience platform BrightLine, has taken a stride toward interactive advertising. Its newly launched dynamic ad units promise viewers a multifaceted interactive experience, from trivia games and product carousels to real-time polls.

  • Michael Scott, Samsung Ads vice president, envisions these advancements as a gateway for advertisers to converse directly with consumers on their smart TVs.
  • Samsung says early reception has been particularly favorable, with automotive, entertainment, and consumer packaged goods sectors showing keen interest.

Precision targeting: In partnership with Affinity Solutions, LG Ad Solutions has introduced LoopIQ, a tool aimed at refining CTV ad targeting using consumer purchase data.

  • LG CMO Tony Marlow says LoopIQ promises to revitalize the way brands engage audiences on streaming platforms, weaving in technologies like automatic content recognition (ACR) to offer advertisers a sharpened aim.

LG and Samsung aren’t going to be CTV advertising leaders at this point; they might not monopolize the market, but they're determined to maximize their share.

Why it matters: As CTV advertising grows, these recent moves by LG and Samsung accentuate the industry's shift toward more interactive formats and precision targeting to capitalize on advertiser interest in the channel.

  • US time spent with CTV will grow another 13.9% between 2023 and 2025 to 2 hours and 11 minutes per day; during that same period, US time spent with social media will grow just 2.4% to 1 hour and 24 minutes per day.
  • Because of its ability to capture so much attention, US CTV ad spending will grow 21.2% this year and another 16.8% in 2024. By 2025, the US CTV ad market will reach $33.06 billion.
  • But despite that size, the market remains highly fragmented. Only three players—Hulu, YouTube, and Roku—will make over $2 billion apiece in revenues this year, giving smaller players like LG and Samsung hope they can carve out a bigger chunk of the pie.