Smart TV ads show 73% growth in helping holiday shoppers make decisions

LG Ad Solutions announced findings from its annual holiday shopping study on July 9, 2025, revealing significant changes in how consumers interact with smart TV advertising during the holiday season. The study surveyed 1,243 US adults with internet-connected televisions during June 2025 to understand holiday shopping behavior and television advertising preferences.

According to the research, 59% of connected TV viewers find television ads useful for providing holiday shopping information, representing a 73% year-over-year increase. The study found particularly strong growth in smart TV home screen advertising effectiveness, with over 25% of CTV viewers finding these ads helpful for holiday shopping—marking a 105% increase from the previous year.

Summary

Who: LG Ad Solutions, a global leader in connected TV and cross-screen advertising, conducted research involving 1,243 US adults with internet-connected televisions.

What: Annual holiday shopping study revealing 59% of CTV viewers find TV ads useful for holiday shopping (up 73% year-over-year) and smart TV home screen ads helpful for 25% of viewers (up 105% year-over-year).

When: Study conducted in June 2025 with findings announced on July 9, 2025, coinciding with Amazon Prime Day and the beginning of early holiday shopping season.

Where: United States market, with survey representative of US Census demographics by age and gender, focusing on connected TV viewer behavior.

Why: Economic uncertainty affects 70% of holiday shoppers' spending decisions, while 71% plan to start shopping before Thanksgiving (up 18% year-over-year), requiring advertisers to adapt strategies for earlier and more cost-conscious consumers.

"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," said Tony Marlow, Chief Marketing Officer at LG Ad Solutions. "It's more than just a gateway to content; it's a gateway to everyday life."

The study reveals that 36% of connected TV viewers get gift ideas from TV and streaming ads, compared to 38% who rely on social media advertisements for inspiration. This positions television advertising nearly on par with social media as a source of holiday gift ideas, suggesting a shift in the digital advertising landscape.

Economic uncertainty emerged as a significant factor influencing shopping behavior. The research shows 70% of respondents indicated economic uncertainty will have some or significant impact on their holiday spending in 2025. Specifically, 28% expect to spend more this year while 30% plan to reduce spending compared to last year.

Consumer spending patterns demonstrate clear differences between early and late shoppers. The study found 71% of CTV viewers will start holiday shopping before Thanksgiving this year, representing an 18% year-over-year increase. Early shoppers plan to spend an average of $875 during the holiday season, compared to $687 for late shoppers who begin after Thanksgiving.

Households with children show substantially different spending behaviors. These families plan to spend an average of $963 on holiday shopping, which is 47% higher than households without children. Additionally, 43% of households with children plan to increase spending in 2025, compared to 20% of households without children.

The research highlights several technical aspects of smart TV advertising effectiveness. Nearly 70% of respondents want holiday shopping ads to be relevant to what they're watching. Additionally, 89% want holiday shopping ads to include specific deals or promotions, while 71% prefer ads personalized to their preferences.

Traditional shopping events maintain strong participation rates despite the shift toward earlier holiday shopping. The study found 89% of CTV viewers take advantage of online Black Friday deals, 87% participate in Cyber Monday sales, and 69% still shop in-store on Black Friday.

Device usage patterns reveal important insights for advertisers. While 77% of consumers plan to purchase gifts via mobile phones, 16% indicated they would buy directly through their internet-connected TV. Parents are 2.8 times more likely than non-parents to purchase gifts through their smart TV.

The study also examined post-holiday behavior. According to the findings, 64% of CTV viewers expect to return at least one holiday gift, with parents 83% more likely to return gifts compared to non-parents. Additionally, 88% of viewers plan to shop after the holiday season for additional deals.

Free ad-supported streaming platforms show strong appeal among holiday shoppers. The research indicates 81% of holiday shoppers watch free ad-supported streaming services, with 59% feeling more favorable toward brands that advertise on these platforms.

Content consumption patterns demonstrate significant seasonal variations. LG's automatic content recognition data from 2024 shows holiday content watch duration spiked 2-3 times during Thanksgiving and Christmas periods. Popular Thanksgiving content included Macy's Day Parade and Christmas movies, while Christmas viewing focused on Christmas movies, Disney Parks Parade, and Christmas baking specials.

The timing of the announcement coincides with Amazon Prime Day, a major e-commerce event that typically marks the beginning of early holiday shopping preparation. The study's release during this period provides retailers and advertisers with actionable insights for planning holiday campaigns.

Cross-screen behavior emerges as a critical consideration for advertisers. The study found 93% of CTV viewers shop on other devices while watching television, with 19% constantly shopping while viewing content. This behavior increased 17% year-over-year, indicating growing multi-device engagement during television consumption.

Advertising category performance varied significantly during Q4 2024. LG's device data shows toys categories increased ad spend by 339% compared to the nine-month average, while clothing and apparel rose 301%. Insurance and general consumer packaged goods also showed substantial increases of 299% and 217% respectively.

The research methodology employed an online survey representative of US Census demographics by age and gender. All respondents were US adults with internet-connected televisions, providing insights specific to the connected TV viewing population.

For the marketing community, these findings highlight the growing importance of connected TV advertising in holiday marketing strategies. The shift toward earlier shopping seasons demonstrates the need for advertisers to adjust campaign timing and budget allocation.

The study's emphasis on economic uncertainty aligns with broader industry trends toward streaming advertising growth as consumers seek cost-effective entertainment options. Recent industry data projects global television advertising to reach $169.1 billion in 2025, with streaming TV advertising expected to surge 19.3%.

LG Ad Solutions recommends four key strategies based on the research findings. First, brands should plan holiday CTV campaigns to start as early as September to engage early shoppers. Second, companies should leverage the TV home screen to engage with holiday shoppers across their buying journey. Third, brands should utilize free ad-supported streaming platforms for impactful messaging. Fourth, advertisers should increase ad relevance through effective audience targeting using household device data and automatic content recognition viewership information.

Timeline

• June 2025: LG Ad Solutions conducts online survey of 1,243 US CTV viewers
• July 9, 2025: LG Ad Solutions announces holiday shopping study findings
• July 9, 2025: Amazon Prime Day begins, marking early holiday shopping season
• Q4 2024: Advertisers across multiple categories increased holiday advertising spend
• January 2, 2025: Industry analysts project streaming TV advertising to grow 19.3% in 2025
• March 17, 2025: Google enables IP address targeting for CTV advertising
• April 18, 2025: Netflix targets doubling advertising revenue in 2025