Harnessing strengths of linear and digital in CTV advertising

GroupM’s recent report The Changing Landscape of Indian Television on the state and potential of addressable TV in India, states that in 2023, 9.8% of total TV ad revenue was from long-form streaming video. This is expected to surpass 13% by 2025 with free, ad-funded services and subscription hybrid products expected to generate most of this growth. Addressable TV homes are set to surpass 45 Million by the end of 2024, covering 21% of Indian TV Homes; a growth of 32% over 2023.

In a recent panel discussion ‘Smart Screens, Smart Strategies’, as part of the eighth edition of Digies, experts debated on how marketers can make the most of this growth. Moderated by Venkata Susmita Biswas, executive editor, afaqs!, the panel comprised Esha Arora, Senior Vice President Marketing, Info Edge India; Vikram Chande, General Manager & Sales Lead - India, Samsung Ads; Siddharth Dabhade, Managing Director, MiQ; and Ashok Shinde, VP - Media, PivotRoots.

Chande said that the advent of smart TVs has significantly evolved the primary use case for TV advertising. Previously, while TV as a device was mature for advertising, it lacked the ability to target specific households effectively. With the emergence of smart TVs, addressability has become a game-changer. 

“Now, advertisers can precisely target households based on various attributes such as household members, size, and TV price. This fundamental shift in the protocol has revolutionised TV advertising, allowing advertisers to map the entire journey of households and create sharper targeting campaigns. As a result, the monetisation potential of TV advertising has soared. India is poised to witness a significant rise in addressable TV households, reaching 65 billion by 2030, representing only a fraction of potential penetration. The turnover of TVs, with many expected to be upgraded within the next few years, will further impact the ecosystem,” he said. 

He also highlighted that India's journey with CTV is nascent, with various stakeholders like OEMs and streaming partners involved. Looking ahead, he believes, that in 10 years, TV is poised to reach the same level of importance as mobile devices are today.

“Similar to mobile devices representing individual users, TVs represent households. TV, being a household device, allows for the measurement of household affluence, a capability enhanced by CTV,” he said.

Being a marketer, Arora shared her thoughts on what she desires from CTV ads. She mentioned insights into the sophistication of the CTV audience. “CTV users typically have a broadband connection and are likely to engage with advanced apps beyond just social media. This refined audience becomes a key filter for targeting. CTV offers the advantage of presenting brands on larger screens, enhancing brand equity.

Furthermore, CTV provides targeting parameters beyond geography, leveraging demographic and psychographic data across various content types. This combination of factors makes CTV a compelling platform. As we consider penetration rates, particularly during events like the IPL and World Cup, the active user base with broadband access becomes a significant subset for targeted advertising on platforms like CTV,” she said.

Dabhade said that CTV provides richer household data compared to linear TV, with nearly 40% of consumers identified as cord-cutters. “With approximately 25 to 35 million households in this category, representing up to 100 million individuals in India alone, the potential for CTV growth is significant. As broadband penetration increases, smart TVs will transition to CTV rapidly. Advertisers targeting premium viewers can leverage CTV campaigns, reaching a segment of 40-50 million individuals who no longer consume linear TV,” he said.

However, one concern remains- the lack of third-party measurement. Shinde said that without critical mass, tangible results may be limited. Achieving around 30% household penetration could lead to more viable outcomes, ensuring effective deployment of advertising budgets.

“CTV faces challenges in becoming a priority for advertisers and marketers, competing with TV and mobile. While it attracts digitally savvy users, there's also demand from brands targeting the masses, posing a challenge. By 2027, there are estimated to be 75 million households. However, CTV may become more lucrative, when it reaches around 100 to 150 million households, representing about 30% penetration in India,” he said.

We would also like to thank our Presenting partner, JioCinema for their support at afaqs! DIGIES Conference & Awards.