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LG’s new ad formats show the race for CTV dominance

The news: LG is now showing ads on its smart TV and connected TV (CTV) screensavers, which appear before default screensavers load. These ads will be turned on by default for LG users but can be switched off and will be displayed across apps and services on LG devices.

Zooming out: CTV and smart TV screensaver ads are not a new development. Roku debuted sponsored ad space on its iconic Roku City screensaver last year, and more CTV apps and manufacturers have started implementing “idle” ads on screensavers and paused content.

Our take: The rapid pace of CTV ad innovation highlights a scramble between players for dominance of the promising ad channel. Signal loss in other well-established ad channels hasn’t hit CTV advertising’s targeting capabilities yet, making it an appealing platform for advertisers struggling to reach consumers.

But change could be looming on the horizon: The FTC recently released a scathing report criticizing digital advertising’s surveillance capabilities and called for regulation.

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