From Insights to Action: Retail Brands, Holiday 2021Let our insights help you make the most of every ad dollar spent during the final quarter of 2021 – from Back-To-School to New Years.Analysis period: 10/1/20 - 12/31/20

Find out more at: www.lgads.tv

0

20

40

60

80

100

9/28 10/5 10/12 10/19 10/26 11/2 11/9 11/16 11/23 11/30 12/7 12/14 12/21 12/28

Weekly Retail Category Ad Frequency

Ads Per Week (Equivalized Units)

Weekly Reach

0K

5K

10K

15K

20K

25K

30K

9/28 10/5 10/12 10/19 10/26 11/911/2 11/16 11/16 11/23 11/30 12/7 12/2812/21

Reta

il A

d U

nits

Week Starting

0M

20M

40M

60M

80M

100M

9/28 10/5 10/12 10/19 10/26 11/2 11/9 11/16 11/23 11/30 12/7 12/14 12/21 12/28

When it comes to the holidays, retail budgets increase and frequency soars – but is that enough? Far from it.

From static reach to clutter, the most wonderful time of year can also be the most challenging for retail brands.

But, with LG Ads, it doesn’t have to be.

Reach remains fairly consistent at

88.4MRetail’s frequency hits a 4Q high the week after Thanksgiving and Black Friday.

Source: LG Ads Video AI analysis of 54 retail brands between October-December, 2020; Weekly ad units are equivalized to 30s duration

Find out more at: www.lgads.tv

Demo-based buying limits the effective reach of target audiences, forcing advertisers to choose the wasted impressions that come with broadcast’s scale or the category clutter that comes with cable’s focused content.

Broadcast has the biggest reach but limited targeting. With cable, the biggest obstacle is clutter. The top cable networks on linear TV are flooded with retail ads in Q4, making it difficult for your brand to have a significant SOV.

Network HH Reach Network HH Reach

70.9M 37.3M

70.6M 35.3M

66.5M 34.8M

63.5M 32.1M

Broadcast

67.9MCable

34.8M

NetworkAvg Retail Commercial

Time Per Hour

1 Min 15 Sec

1 Min 15 Sec

1 Min 15 Sec

1 Min 0 SecC H A N N E L

That’s between 3-5 retail commercials per hour on these networks

Average HH Reach of Top 4 Channels

Source: LG Ads Video AI; Clutter Index calculates the % of all ads on the network that fall into the Retail category; Analysis assumes 15 minutes of advertising per hour

Find out more at: www.lgads.tv

To break through the clutter, frequency management is key.

Retail category ads reach at least 80% of viewers across all segments – light, medium and heavy.

But the distribution of frequency across viewing segments skews towards heavy viewers, who see nearly 90 retail ads per week and away from light viewers who see just 3.

The likelihood of reaching the lightest viewers is small while the breaking through the clutter among heavy viewers is a steep task.

Manage frequency by suppressing heavy viewers and finding light viewers on CTV and cross-screen video with LG Ads’ Video AI targeting.

0%

20%

40%

60%

80%

100%

0

20

40

60

80

100

Light Medium Heavy

83.3%

99.5%100%

89.425.2

3.2

of viewers across all linear TV segments

Retail category ads reach at least

80%

Source: LG Ads Video AI, terciles based on linear TV viewership October-December, 2020, reach and frequency analysis based on national and local linear TV retail ads airing October-December, 2020.

Find out more at: www.lgads.tv

Weekly Advertising Weight Compared to Average Week (Brand Category)

+162% +82.6% -12.5% -16.8%

Toys Retail Telecom Travel

Leading up to a night of mischief and candy, toy and retail advertisers significantly increase their frequency on linear TV.

With the ability to target viewers of linear holiday and horror shows, LG Ads helps these advertisers break through the clutter and gain significant SOV.

Touchdowns and balloon floats. Football and parades are the most viewed linear TV programs from Nov20-27.

With the ability to retarget these linear TV viewers on CTV, LG Ads helps retailers capitalize on the 29% increase in CTV viewership during this same period.

Genre Percentage Lift in Viewing

Holiday +133%

Horror +52%

Thriller +21%

Parenting -7%

Top Programs:

1 NFL on FOX

2 NFL on CBS

3 NFL on NBC

4 College Football on ABC

5 Macy’s Thanksgiving Day Parade

Halloween Insights Thanksgiving & Black Friday Insights

Average daily watch time for linear TV & OTT combined*

Average number of HHs by medium*

Linear TV

OTT

+25% +14%+29%

* % change in HH viewing during the holiday period (Nov20-27) from average HH viewing from Jan01-Oct31.

For more Halloween, Thanksgiving & Black Friday Insights, https://lgads.tv/resources/

Find out more at: www.lgads.tv

National Airings Dec01-31’21

7K+ 5K+ 5K+ 4K+

Many designer & luxury retail brands advertise exclusively on linear TV in December - just in time to reach HHs buying holiday gifts for their friends and family.

And many retail brands promoting health and happiness significantly increase their frequency on linear TV between Christmas and the New Year - just in time to reach HHs as they make their resolutions.

LG Ads provides highly-targeted (and even 100% SOV opportunities) to ensure these retail brands reach the right HHs at the right time.

Christmas & New Year’s Insights% of December Airings During Holiday

Week (Dec24-Jan01)

42%

43%

46%

34%

44%Genre Percentage Lift in Viewing

Holiday +127%

Miniseries +102%

Playoff Sports +57%

Crime Drama -6%

Horror -9%

For more Christmas & New Year’s Insights, https://lgads.tv/resources/

Find out more at: www.lgads.tv

From Insights to Action Retail Brands, Holiday 2020As linear TV frequency increases, reach remains fairly consistent - even during the week of Nov23, where frequency hit its peak in 4Q’20.

Both broadcast and cable linear TV have drawbacks - most notably limited targeting and high clutter.

» In 4Q, when advertising ramps up for the holidays, it can be difficult to establish a significant SOV with only linear TV.

For linear TV, the distribution of frequency varies greatly from heavy to light viewers.

» In comparison to heavy viewers, ads are significantly less likely to break through the clutter to reach medium viewers and even less likely to break through to reach light viewers.

Inclusion of LG Ads, allows advertisers to:

» Increase their frequency and see a significant increase in reach by targeting medium and light linear TV viewers as well as cord cutters.

» Manage frequency by excluding heavy linear TV viewers, who are likely already being overexposed to their ads.

» Take advantage of 100% SOV opportunities with our Native offerings

As an OEM, LG Ads helps advertisers reach more unique HHs with less media spend:

Unique Reach %

Cost per Unique Reach (HH)

Average Campaign Unique Reach %

+7%

-35%

95%Source: Davis Elen Advertising, https://daviselen.com/case-studies/navigating-the-streaming-world/

LG Ads is GDPR, CCPA, & FTC compliant with clear consumer opt-in and opt-out processes. Find additional information at https://alphonso.tv/privacy.

Learn more: www.lgads.tvContact at us: info@lgads.tv

We’re a leader in helping brands find unduplicated reach across a fragmented TV landscape, and maximize return on ad spend. We bring together years of experience in delivering premium home entertainment products to consumers worldwide, with big data and Video AI designed to connect brands with audiences across all screens.

Our platform brings together the two best TV industry leaders’ technologies and devices, to create one platform for activating and measuring media across connected TVs and digital video. Our actionable insights help marketers fine tune cross-screen campaigns in flight; and understand ad performance to optimize media buys.

Advertisers now have a single source for LG CTV inventory, with one-stop planning, activation and measurement across all viewing platforms. With our premium LG smart TV ad inventory, combined with deterministic TV data from a broad range of smart TV brands, LG Ads stands out for its expertise in reaching both massive-scale and granular custom audience segments, and for helping brands understand business outcomes from TV.Projection methodology: LG Ads uses monthly IP Address and TV ID data from our nationally representative ACR footprint to project linear and streaming viewing to the total US TV household population.