Smart TV Ads Take Center Stage in Holiday Shopping, LG Study Finds

Smart TV Ads Take Center Stage in Holiday Shopping, LG Study Finds 

Nearly 6 in 10 U.S. Connected TV (CTV) viewers now say that TV ads help guide their holiday purchases, which is a 73% increase from last year. And when it comes to inspiration, 36% say they’ve gotten gift ideas from TV and streaming ads, putting them on nearly equal footing with social media ads, which stand at 38%. These findings come from LG Ad Solutions’ latest annual holiday shopping report, shedding light on how Americans are engaging with advertising in a digitally evolving home environment.

“The Smart TV Home Screen has transformed the entire entertainment experience– shifting what once was a passive viewing environment to one that offers interactive activities like gaming, fitness, and even holiday shopping. It’s more than just a gateway to content; it’s a gateway to every-day life,” said Tony Marlow, CMO at LG Ad Solutions.

The study highlights that viewers are no longer passively watching ads, but they’re actively using them to inform their shopping decisions. With connected TVs now offering personalised, interactive, and content-rich experiences, they’ve become more than entertainment centres. Increasingly, they function as discovery platforms where shoppers can find products, promotions, and purchase pathways, all from their living room screen.

Rising Expectations

But it’s not just about where people are seeing ads—it’s also about what they expect from them. Today’s viewers want advertisements to be functional, personal, and frictionless. LG’s study shows that audiences are no longer just tolerating ads during the holidays—they’re expecting them to provide real value.

Viewers made their preferences clear:

  • 89% want holiday ads to feature specific deals or promotions.
  • 71% prefer ads personalised to their interests and behaviour.
  • 69% want ads to simplify purchasing, including features like QR codes that link directly to product pages.

Consumers are increasingly open to engaging with ads, so long as the ads respect their time, offer something useful, and streamline the path to purchase.

Physical Retail Is Still Present

While online shopping remains dominant, physical retail still plays a strong supporting role. LG’s report found that 89% of CTV viewers plan to shop Black Friday deals online, and 87% expect to participate in Cyber Monday sales. Yet, despite the rise of e-commerce, 69% say they’ll still take advantage of in-store Black Friday promotions. This indicates that consumers are embracing a hybrid shopping experience, leveraging both digital and physical touchpoints during the holiday season.

When Are They Shopping?

Many consumers are getting an early start, with 71% saying they’ll begin shopping before Thanksgiving—an 18% increase compared to the previous year. And the shopping doesn’t stop once the holidays are over. A full 88% of CTV viewers say they’ll continue shopping after the winter holidays in search of extended deals and discounts.

However, this flurry of shopping activity exists alongside economic concerns. As many as 70% of respondents noted that economic uncertainty will have either a significant or moderate impact on their holiday spending this year. Interestingly, consumer plans appear split: while 28% expect to spend more than they did in 2024, 30% say they will likely spend less.

In response to rising prices for out-of-home entertainment, many Americans are also opting to stay in and stream more. LG Ad Solutions recently found that 59% of U.S. consumers plan to stay home more often because of increasing costs. This trend dovetails with the growing popularity of FAST (free ad-supported streaming TV). More than two-thirds of consumers say they’ve either already increased or plan to increase their use of FAST platforms, creating even more opportunity for brands to meet consumers where they are—on the couch, remote in hand, ready to shop.

As the line between content and commerce continues to blur, the living room TV is rapidly becoming one of the most influential screens in retail, and this holiday season, it might just be the most important one of all.