The Growth of Connected TV in India
- Rapid Adoption
A recent report by Redseer highlights that over 40 million households in India own a connected TV, with penetration expected to grow at a CAGR of 20% through 2025. This surge is driven by affordable smart TVs, cheaper data plans, and an increased appetite for high-quality OTT content.
- OTT Platforms Driving Growth
India’s thriving OTT ecosystem, which includes platforms like Disney+ Hotstar, Netflix, Amazon Prime Video, and JioCinema, complements the growth of connected TV. According to PwC, India’s OTT market is projected to reach ₹24,000 crore by 2026, with a significant portion being consumed on connected TV devices.
- Increased Viewing Time
Nielsen data reveals that the average connected TV user in India spends 2 hours daily streaming content, offering ample time for ad engagement compared to traditional linear TV consumption.
Advantages of Advertising on Connected TV
- Targeted Advertising
Unlike traditional TV, CTV allows for programmatic and data-driven ad placements. Advertisers can target households based on demographics, geolocation, viewing preferences, and even purchasing behavior.
- According to a study by InMobi, CTV ad campaigns in India result in 40% higher click-through rates (CTR) compared to traditional TV commercials.
- Cost-Efficiency
Although the CPM (cost per thousand impressions) for CTV ads may initially seem higher, the accuracy in targeting ensures better ROI. Research from GroupM indicates that CTV ads in India achieve 25-30% better cost efficiency compared to broad-based linear TV campaigns.
- High Engagement
Viewers engaging with OTT content through CTV tend to be highly invested, leading to higher ad recall. A Kantar study notes that 70% of Indian CTV audiences remember ads they see during streaming sessions, outperforming traditional formats.
- Non-Skippable Advertising
CTV offers opportunities for non-skippable ad formats, like mid-roll and pre-roll ads, ensuring advertisers reach their audiences without interruptions.
Key Trends in CTV Advertising in India
- Programmatic Advertising
The rise of programmatic advertising is making CTV a lucrative platform. By 2025, 50% of Indian CTV ad spends are expected to be programmatic, as per Magna’s forecast.
- Regional Content Growth
With India’s multilingual audience, regional OTT content is booming. Platforms like Sun NXT and Hoichoi are creating opportunities for advertisers to target vernacular-speaking households via connected TV.
- Interactive Advertising
Interactive ad formats, where viewers can click on the ad to explore more or make a purchase, are becoming popular. This interactivity adds a performance marketing angle to CTV campaigns.
- Hybrid Models
Ad-supported subscription models (AVOD) are growing. For instance, JioCinema and MX Player rely on a mix of ads and premium content, offering affordable options for both advertisers and viewers.
Challenges in CTV Advertising
While the growth of CTV is undeniable, there are hurdles brands must navigate:
- Measurement Complexities: Unified measurement frameworks across different platforms remain a work-in-progress.
- High Entry Barrier for SMBs: Smaller brands may find CTV ads less accessible due to the initially high investment required.
- Competition with Mobile Ads: In a mobile-first market like India, CTV competes with lower-cost mobile advertising, which dominates digital ad spends.
The Future of CTV Advertising in India
The future of CTV advertising is promising, with key trends like addressable ads, AI-driven personalization, and 5G rollout expected to further drive innovation. By 2026, GroupM forecasts that CTV ad spends will account for 10-12% of India’s total digital advertising spends, underscoring its growing relevance.
For brands, the message is clear: Connected TV isn’t just a platform—it’s a game-changer. With the right strategies, brands in India can ride the CTV wave to achieve unprecedented reach and engagement.