CTV takes centre stage as it reshapes India's advertising landscape

India’s advertising landscape is undergoing a dramatic shift and evolution with Connected TV emerging as a powerful innovative force. Beyond mere statistics, this transformative growth and heightened audience engagement, fundamentally alters how brands connect and interact with Indian consumers.

CTV: Captivating the Living Rooms

CTV is leading the charge in this advertising revolution. A staggering 65% of Indian households have ditched traditional cable and DTH connections, opting for Smart TVs, Fire Sticks, and internet-enabled set-top boxes according to Dentsu India Media & Entertainment Report, 2023. This shift in viewing habits creates strategic opportunities for advertisers. With families dedicating an average of three hours daily to their Smart TVs, prime time slots like dinner where 74% engage in shared viewing experiences become highly valuable. CTV currently commands a significant 41% share of the OTT space, demonstrably impacting consumer behaviour. A recent study by Magna Global also indicated that 64% of viewers respond to CTV ads, 48% actively search for information after exposure, and a remarkable 33% proceed to make purchases.

A Quantum Leap: India's CTV Odyssey

Counterpoint Research indicated that there were nearly 4.5 million Smart TVs shipped in 2023 alone. The future of CTV in India is hence nothing short of spectacular. This is validated by GroupM Essence Report, 2024 which forecasts CTV to become the nation's third-largest market, reaching over 46 million households. This meteoric rise is fuelled by a robust internet infrastructure, the proliferation of Smart TVs, affordable content, and a monumental shift in how viewers consume content. This growth isn't just about numbers; it signifies the deep integration of CTV into the fabric of Indian homes. The seamless connectivity offered by CTV is a major factor behind the majority of households now favouring it over traditional options.

Targeted Ad Solutions

Connected TVs offer advertisers a unique platform to deliver targeted ad solutions tailored to specific audience preferences and demographics. By leveraging CTV's precision targeting capabilities, advertisers can maximize campaign effectiveness and enhance viewer engagement. With screen size targeting, ads can be customized to suit the dimensions of viewers' screens, ensuring optimal visibility and impact. Language preferences enable advertisers to deliver ads in languages that resonate with viewers, fostering stronger connections. Additionally, CTV advertising allows for targeting specific audience sizes, whether niche segments or broader demographics, through audience segmentation tools and data-driven insights. This flexibility in targeting, along with features like screen size and language preferences, enables advertisers to create personalized campaigns that resonate with viewers, driving higher engagement and brand recall. As the CTV landscape continues to evolve, forward-thinking advertisers will capitalize on these capabilities to deliver impactful ad experiences that foster meaningful connections with Indian audiences.

OEMs: Precision Engineers of the CTV Landscape and High-Impact Inventory Gatekeepers

The fragmented nature of CTV advertising is undergoing a metamorphosis with the entry of Original Equipment Manufacturers. These tech titans are more than just hardware providers; they're becoming architects of CTV precision, wielding a powerful toolkit of innovations like interactive ad formats and data-driven audience segmentation.

These high-impact inventory options, combined with the previously mentioned programmatic ad buying, data & measurement tools, and inventory management, empower advertisers to create truly impactful CTV campaigns. They can reach a wider audience, particularly affluent demographics who may own high-end smart TVs, and deliver highly targeted and personalized ad experiences within the family viewing environment. By leveraging OEM capabilities, advertisers can craft cohesive campaigns that grab attention from the moment viewers turn on their TVs, all the way through to personalized ad experiences within the chosen content.

OEMs are evolving into full-fledged advertising platforms, offering comprehensive solutions that include high-impact inventory.

The future of CTV promises exciting possibilities. AI-driven recommendation engines, interactive content experiences, and voice-based assistants will offer advertisers an ever-evolving canvas for personalized and engaging campaigns. This, coupled with the projected 13% surge in total TV ad revenue by 2025 as per Magna Global underscores the growing importance of targeted and personalized approaches in CTV advertising. Regional growth, particularly in High-Service Metro and Tier 2 cities, signifies the democratization of CTV, making it accessible to a wider range of advertisers across India.

What might seem like a drop in the ocean is a huge opportunity for advertisers. The surge TVs getting connected in India is more than just a statistical anomaly; it's a paradigm shift. Forward-thinking advertisers will adapt to this dynamic landscape, crafting campaigns that resonate with the evolving family-centric viewing habits of Indian audiences.