Mumbai: Connected TV (CTV) viewing has been gaining momentum in the western part of the world and is now on an escalating curve in India with 12–14 million monthly active CTV users, according to the FICCI-EY report of March 2022. The advancing new trends in the media and entertainment (M&E) industry have led to a noticeable change in the TV viewing habits of Indian audiences, leading to connected TV making a strong appearance in India. The exponentially growing CTV, which was earlier incomparable to linear TV, has now loomed out of the shadows and is considered a potent alternative for brands to advertise on. In the current digitally evolving ecosystem, affordable prices of smart televisions, increasing data penetration, and the availability of global content have aided in the medium’s rapid growth, making it a prominent mover and shaker in the M&E space. According to the March 2022 FICCI-EY report, by 2025, this number is expected to hit 40 million, highlighting its explosive growth as a medium in the country.
A revenue stream within digital:
For many years, traditional TV was the only platform for media buying. As users move towards connected TV, the medium is creating an opportunity to grow business revenues. In today’s time, content dissemination and consumption are platform-agnostic, giving brands an opportunity to generate visibility for themselves on the big screen. With CTVs ushering in the next big revolution, the ecosystem holds the potential for greater returns. As a new revenue stream within the digital landscape, CTV has grown to become an impactful channel that provides targeting capabilities and measurability. In a digital-forward world, measurement capabilities make the medium a must for any brand to push forth its marketing strategies and capitalise on the same.
A powerful addition to the marketer’s toolbox:
Connected TV, which has recorded notable growth in the past few years, is becoming a paradise for advertisers. In today’s data-rich world, consumers are increasingly demanding brands to deliver focused and relevant messaging. With more eyes on the big screen, CTV helps brands reach out to new and hard-to-reach audiences and form deeper connections with them. It has surfaced as a successful growth opportunity for advertisers who want access to a highly engaged, affluent audience. Advertisers, globally and in India, are lapping up the connected TV opportunity as it continues to grow as an exciting medium.
With the widespread adoption of digital, CTV as a medium appears to be very promising for both consumers and advertisers. The growing adoption of streaming content through connected devices makes the medium an important and new touchpoint for advertisers. According to the IAB 2021 Video Ad Spend & 2022 Outlook report, globally, ad spending on connected TV grew 57 per cent in 2021 to $15.2 billion and will grow another 39 per cent in 2022 to $21.2 billion. In India, while CTV advertising spends are yet to fully catch up with growing smart TV subscriptions and consumers spending more time on these devices, ad spends will eventually move in a positive direction, making connected TV advertising the next big frontier.
Towards a promising future:
Presently, growing at a burgeoning pace, the connected TV market seems to have a propitious future. In our approach to reaching out to our digital audiences, CTV acts as a significant contributor. Needless to say, the medium will further prosper as a result of increasing attention from advertisers as they look to leverage the potential of digital advertising to reach their target customers in an innovative and effective manner. The overall ecosystem of connected devices, driven by technological advancements, will provide enormous headroom for growth in the future of media and entertainment. For a progressive future, it will become imperative for all stakeholders to strategically cater to this exponentially rising consumer growth trend.
The author of this article is QYOU Media India COO Krishna Menon.