When CTV made significant advances in India in 2023

In earlier this year, exchange4media was told that 2023 will mark a tipping point in CTV adoption in the country, due to the lower cost of screens and Smart TVs in general, combined with low data charges, and an increasing penetration of OTT services and options. Then came the IPL, with JioCinema casually offering free streaming matches, and the floodgates appeared to open. Hotstar's recent World Cup coverage only served to highlight the benefits of streaming, and despite the fact that India is a mobile-first market, CTV is making inroads.

CTV penetration is expected to reach more than 30 million households by the end of 2023, and to more than double by 2025. Streaming is quickly becoming the preferred viewing method, aided by the availability of free streaming sites for major sporting events such as the ICC Cricket World Cup, IPL, and FIFA World Cup.

In fact, almost 90% of all TVs sold in India in the last year were Smart TVs, bringing all of these cutting-edge capabilities directly into Indian living rooms. The future is definitely streaming, linked, and interactive, which means that advertisers looking to enter the field will find vast untapped riches in this dynamic environment.

According to Siddharth Dabhade, Global Commercial Board Member and Managing Director of MiQ India, live-streaming services have revolutionised content accessibility, allowing customers to easily access real-time information.

"With CTV, consumers can now skip through lengthy movie segments or catch up on highlights from their favourite sporting events." According to recent statistics, Indian households spend more than three hours every day consuming material on their smart TVs," he says.

According to Magnite Asia research, 59% of streamers currently access video on CTV devices and spend an average of eight hours each week streaming entertainment on a large screen. AVOD has emerged as another significant driver of adoption, according to Gavin Buxton, MD, Magnite Asia, as streamers have demonstrated a willingness to watch advertising in exchange for free or reduced-cost access to premium television programming.

"Additionally, broadcasters are increasing their investment in digital-first content while also launching more FAST (Free Ad Supported TV) channels." This evidence supports the notion that the AVOD model is the future of CTV and will be increasingly adopted by more content owners, many of whom have already begun to roll out ad-supported tiers in the last year," he says.

CTV's Advertising Advantage

Advertisers are taking notice of CTV's abilities to increase viewer engagement and ad recall. CTV ad expenditure is increasing due to new audiences, unique addressability options, and higher quality advertising experiences. The ability to personalise a message to a specific audience on CTV allows advertisers to reach viewers at the most appropriate times.

According to a Finecast-Group M analysis on the changing landscape of television in India, CTV ad spend will grow at a CAGR of 47% in the country until 2027. Furthermore, it predicts that ad spending will reach nearly $86 million this year alone, rising to around $395 million by 2027. 

"The trend I anticipate involves consumers extensively utilising mobile data and hotspots to stream content on TV, potentially fueling explosive growth in the CTV sector," says Rajiv Rajagopal, National Head- Client Development, Finecast, adding, "In my perspective, as CTV transforms how people consume TV content, advertising is poised to undergo significant changes."

Connected TV outperforms linear TV from the standpoint of advertisers because it provides access to young, affluent audiences that are difficult to reach via linear TV, and it enables data-driven planning, accurate targeting, real-time activation, and enhanced measurement for video ad campaigns.

Prabhvir Sahmey, Senior Director for Ad Sales - India, Samsung Ads, acknowledges that it has been a positive year for the CTV business, saying, "For us, this has resulted in an increase in our brand coverage and higher acceptance of the CTV platform." Despite this, reach figures are still quite good. In India, we currently have over 9 million TVs, up from 6 million last year. Advertisers who grasp CTV's differentiator are less hesitant to incorporate it into their marketing strategy."

"Many brands have incorporated Connected TV into their media plans and have witnessed its impact across the marketing funnel." "CTV has enabled advertisers to test new campaign activation strategies, such as targeting viewers based on their content consumption habits using ACR data, retargeting CTV viewers across devices, CTV household sync, and competitor conquesting," explains Dabhade.

"As a result, CTV ads can help marketers realise better return on ad spends (ROAS) than linear TV, lowering the budgetary ceiling for many digital-first brands, SMEs, and startups to efficiently venture into TV advertising." According to MiQ's worldwide TV analysis, streaming time outnumbers linear viewing by 22%," he says.

"Additionally, as competition increases across the streaming landscape, the need to deliver a seamless ad experience is critical to the success of many platforms." An sophisticated ad server can help publishers deliver more optimal ad experiences, which is critical to maintaining users and competing in a crowded landscape," says Buxton.

Future Surveillance

According to Rajagopal, CTV will primarily revolutionise advertising in three ways: targeted advertising on large screens, flexibility and creativity with real-time data, enabling tailored ads with dynamic elements based on user geo-location, and cross-channel integration as CTV becomes an integral part of a more unified marketing strategy, prompting advertisers to adjust their budgets accordingly.

Having said that, Sahmey adds that usage across top advertising sectors is still relatively low. "I would estimate that close to 20% of advertisers are advertising on CTV, with a significant portion of them being active digital advertisers." Verticals such as automotive have received significantly more coverage than FMCGs."

Nonetheless, the industry has barely touched the surface of the CTV opportunity in India, according to Tejinder Gill, General Manager, The Trade Desk. "CTV is now known as the new TV because it drives premium content in the same way that traditional TV did." Our research suggests that commercials on legitimate CTV channels are more likely to be perceived as trustworthy by consumers than those on user-generated content (UGC) channels, which are frequently skipped and less trusted."

"Today, CTV enables marketers to apply data to their massive TV campaigns, providing precision for brands eager to demonstrate ROI for every ad dollar spent." It's also worth noting that CTV relies heavily on user email logins to generate identities. "Cookies are non-existent in CTV and many fast-growing open internet channels," says Gill.

Krishna Menon, Chief Operating Officer of QYOU Media India, emphasises the two-way interaction between CTV and advertising spend. While CTV drives ad spend growth, increased ad spending likewise drives CTV adoption, creating a virtuous circle.

He goes on to say, "CTV offers interactive and engaging formats like shoppable ads, addressable advertising, and personalised experiences and these formats are proving more effective in capturing viewer attention and driving conversions which is why Advertisers are shifting budgets from traditional media to CTV, acknowledging its benefits for targeted reach and measurable results."