e4m Report Card: CTV gets A+ in 2024, 100 million households on the horizon

The Connected TV (CTV) market in India is poised for explosive growth in the year ahead and beyond, driven by a confluence of technological advancements, changing consumer preferences, and evolving advertising strategies.

As previously reported by exchange4media, the number of CTV households is projected to reach 45 million by the end of 2024, reflecting a 21% year-on-year increase from previous years. This surge is largely attributed to increased internet availability, affordable smart TVs, and the popularity of ad-supported streaming services.
Perhaps more staggering is the fact that there are still over a 100 million non-smart TVs in the country (sold between 2009-2015), which will be subsequently upgraded to internet-connected devices.

Drivers of CTV Growth

Several factors are fuelling the rapid adoption of CTV in India, not least that with over 900 million internet users in India, the foundation for CTV growth is solid. The increasing availability of high-speed internet enables seamless streaming experiences.
The price of smart TVs has decreased significantly, making them accessible to a broader audience. Reports indicate that smart TVs accounted for over 90% of total TV shipments last year, signalling a shift towards connected devices. Major sporting events, particularly the IPL, have driven viewer engagement on platforms like JioCinema, which offered free streaming during peak seasons. This has attracted millions to CTV platforms.
Consumers are increasingly opting for on-demand content over traditional linear TV. The convenience of watching content anytime and anywhere has made CTV a preferred choice.

CTV Platforms and Advertiser Relationships

The relationship between CTV platforms and advertisers is evolving rapidly. Advertisers are recognising the unique advantages that CTV offers over traditional advertising methods. According to industry insights, CTV allows for targeted advertising based on viewer data such as demographics and viewing habits. This level of targeting enhances engagement rates and improves return on investment (ROI) for advertisers.

Ad-supported models introduced by major streaming services have opened new avenues for advertisers. These models provide content at lower or no cost to consumers in exchange for viewing ads, thus broadening the audience base while offering advertisers access to engaged viewers.

Costs of Advertising on CTV

The cost structure for advertising on CTV can vary widely depending on several factors including inventory availability and targeting options. Generally, CTV advertising is more cost-effective than traditional TV ads. As reported by various sources, the average ad expenditure on CTV in India was approximately $86 million in 2023, with forecasts suggesting that this could increase fivefold by 2027.

Pricing models typically include cost-per-thousand impressions (CPM) or cost-per-action (CPA), allowing brands to tailor their spending based on campaign goals. For instance, video ads can start as low as Rs 0.176 per impression, making it an attractive option for both large brands and smaller advertisers looking to maximise their reach.

Marketers Adapting to CTV Advertising

As the CTV landscape matures, marketers are adapting their strategies to leverage its unique advantages effectively. Many brands are integrating CTV into their overall media plans and experimenting with innovative advertising formats such as interactive ads and shoppable content. These formats not only enhance viewer engagement but also provide valuable insights into consumer behaviour.

Marketers are increasingly utilizing advanced analytics tools to measure campaign performance more accurately. The ability to track viewer interactions in real time allows brands to optimize their campaigns dynamically, ensuring they achieve maximum impact.

Furthermore, programmatic advertising is becoming a key component of CTV strategies. By leveraging automated content recognition technologies, advertisers can deliver personalized ads that resonate with viewers’ preferences, enhancing overall campaign effectiveness.

Conclusion

The future of the CTV market in India looks exceptionally promising as it continues to evolve rapidly. With an expanding number of households adopting smart TVs and increased internet penetration, marketers have a unique opportunity to engage with audiences in innovative ways. The ability of CTV advertising to deliver targeted messages with high engagement rates positions it as a critical component of modern marketing strategies.