With the rapidly expanding viewership and the rise of ad-supported channels, Connected TV ads are gaining huge popularity. According to a report by Finecast-Group M, CTV ad spending will grow to have a CAGR of 47% in India between 2022 and 2027. This growth is due to the rise of OTT (Over-the-Top) platforms, increased internet penetration, and the availability of affordable CTV devices.

While this is obvious, what perhaps is not as much is that gaming companies continue to be the highest ad spenders in the Connected TV space. Speaking to exchange4media, experts opined that this is due to the fact that multinational FMCG and other retailers, though they have also started entering the space in droves, still rely on massy mediums to reach out to the largest possible consumer base. Meanwhile, people who buy and use CTVs are already identified as tech-savvy, high intent of purchase consumers who are more likely to use disposable income on games and entertainment.

Yashash Agarwal, CEO & Co-founder, Gamezop, points out that many gaming companies today have become large brands themselves because of the significant market they occupy and their capacity to spend on marketing. “Advertising on Connected TVs provides them with an opportunity to promote their games to a captive audience. The targeting capabilities of Connected TV advertising also allow them to reach specific demographics or geographic regions.”

Furthermore, Connected TVs come with built-in internet connectivity and support gaming very well. “By making their games compatible with Connected TVs, gaming companies are making their titles available on another platform, where they can offer users a more immersive gaming experience,” notes Agarwal, adding that one hopes that Connected TV opens up another meaningful revenue stream for game developers.

As someone who has closely followed the gaming industry for decades, for Apurv Modi, MD and Co-Founder, Tech Almond Solutions, the fact that gaming companies are becoming big spenders on Connected TVs is not surprising. “The shift towards Connected TVs has been a long time coming, and it's only natural that gaming companies are getting in on the action. One of the biggest reasons could be the growing popularity of gaming on Connected TVs. As more and more consumers shift away from traditional gaming consoles and towards Connected TVs, gaming companies are following suit.

Another reason could be that more and more games are popping up on connected TV platforms, capturing audience attention and providing a significant opportunity for game developers to reach a wider audience and tap into the growing popularity of Connected TV.

“But don't just take my word for it. The numbers speak for themselves. According to eMarketer, gaming companies are expected to spend over $24B billion on Connected TV advertising in the US alone in 2023. That represents a 26.5% to 26.7% increase over 2022.  If current trends continue, we can expect gaming companies to continue to be major players in the Connected TV advertising space,” adds Modi.

And the proof is in the pudding. “At PlayerzPot, we are expanding our overall reach to find and engage sports enthusiasts with the right intent. Through easy targeting and optimization of CTV, we ensure that the targeted audience views our ads at the right time. If done effectively, this kind of ad spend has significant potential for acquiring and targeting the right user base on our platform,” concludes Yadav.