LG TVs start displaying ads on screensavers

Last month, Ars Technica did an in-depth look at the rapid growth of ads in TV software. Less than three weeks later, LG announced that it would add ads to its TV screensavers. The move epitomizes how ads are a growing and virtually unavoidable part of watching TV—even when you’re not watching anything.

As you might expect, LG didn’t make a big, flashy announcement to consumers or LG TV owners about this new ad format. Instead, and seemingly strategically, the September 5 announcement was made to advertisers. LG seems to know that screen saver ads aren’t a feature that excites users. Still, it and many other TV makers are happy to stuff ads into the software of devices you already own.

LG TV owners may have already noticed the ads or learned about them via FlatpanelsHD, which reported today that it saw a full-screen ad on the screensaver of LG’s latest flagship TV, the G4. “The ad appeared before the conventional screensaver was triggered,” according to the site, “and was localized to the region where the TV was set.” (You can see images of the ads provided by FlatpanelsHD here , here , and here .) The reviewer reported seeing an ad for LG’s free ad-supported streaming channel, LG Channels, as well as third-party ads.

According to FlatpanelsHD, LG has enabled these ads by default, but they can be turned off in the TVs’ settings. Still, the introduction of ads during the screensaver, which appears during a break in TV viewing and which some TVs use as an opportunity to showcase art or personal photos that enhance the space, illustrates the high priority that ad dollars and tracking have on today’s TVs — even the highest-end ones.

According to LG’s advertising arm, LG AD Solutions, screen saver ads are activated “on the home screen, LG channels and in the content store on LG Smart TVs.” The idea is to leverage “screen idle time, turning what may be perceived as downtime into a valuable opportunity for engagement.” LG AD Solutions says it commissioned tests that showed screen saver ads “increased brand awareness by an average of 2.5 times.”

LG AD Solutions CTO Dave Rudnick said in a statement that people whose TVs display screensavers are often trying to do something other than watch ads.

“In the past, a screensaver ad might have indicated that viewers had left the room, but today’s viewing habits are distinctly different,” he said. “Now, 93 percent of viewers multitask while watching TV, engaging in activities like texting, shopping, scrolling through social media or playing games on their phones.”

TV Commercial: The Next Generation

Adding screensaver ads that users can disable may seem like a relatively minor disruption when it comes to TV operating system (OS) ads. However, incorporating new ad formats into the various corners of TV operating systems is a slippery slope. Some TV brands are more focused on advertising than on selling hardware. Unfortunately, it’s up to OS carriers and TV OEMs to decide where the line is drawn, including for TVs they’ve already purchased. The interests of users and advertisers don’t always align, making third-party ad-free TV streaming platforms like Apple TV increasingly rare gems.

LG has expanded its business to include selling and tracking ads displayed on LG TVs. For example, the company has a partnership with Nielsen that sends Nielsen automatic content recognition data collected from LG TVs. In addition, LG has boasted plans to evolve from a hardware business into a “media and entertainment platform” that includes selling ads. The South Korean company has also expressed strong interest in shoppable TV ads.

In turn, growing interest in LG ads prompted the company to launch a new division this month, LG Ad Solutions, that focuses on developing new ways to display ads and track smart TV users. In a statement, Rudnick said Innovation Labs aims to “push the boundaries” of smart TV advertising and power “next-generation advertising,” including interactive ads, on smart TVs.

LG adapts to changing market

LG says it did its homework before deciding to inject ads into TV screen savers. Research commissioned by LG Ad Solutions, which was reportedly conducted and measured by Lucid, a consumer research firm, found that screen saver ads increase brand awareness, especially among adults 45 and older and women with a household income of more than $80,000 (assumed per year).

LG’s ads come as the company struggles to continue to find revenue and growth in its TV business as TVs become more advanced and reliable and can receive new features via software updates. Meanwhile, advertisers are struggling to find ways to continue to reach TV viewers in a world shifting from linear TV to streaming and online entertainment, which often comes with an ad-free option. While lower-priced TVs like those running the Roku operating system may have a reputation for being more ad-heavy, they’re still doing well in the marketplace.

Market conditions and changing TV viewing habits are forcing LG to adjust how it monetizes its TVs. Unfortunately for those who oppose advertising, that means promoting more ads and finding better ways to track viewers.