The Future of CTV Advertising In India: Trends and Predictions

The first LED TV in India was launched in 2009. Cut to 2023, the landscape of CTV has witnessed a remarkable evolution, a testament to India's rapidly growing digital connectivity and the widespread adoption of Smart TVs. This transformation is not just about technology; it's a cultural shift, as CTV becomes a central part of family entertainment and the device of choice across diverse Indian households. This results in a vast, captivated audience, presenting unique opportunities and challenges for advertisers and brands in 2024.

The industry's trajectory is set for an even more dynamic and transformative future. Join us as we delve into this fascinating journey of CTV in India, exploring how it's reshaping the way content is consumed and offering a glimpse into what the future holds.

Current state of the connected TV market in India

The Indian CTV market presents endless possibilities in the CTV advertising space. The growth of Connected TV (CTV) in India can be attributed to a confluence of factors, making it a burgeoning space for both viewers and advertisers. The widespread availability and affordability of high-speed internet have been a game-changer, allowing streaming services to penetrate deep into both urban and rural areas. 

In 2023, almost 4.5 million smart televisions were shipped to India. This is due to the changing viewing habits and increasing preference for OTT platforms among Indian consumers. While the global growth rate for the OTT segment is 8.4%, India is way ahead with a CAGR of 14.32%. The market size of the OTT streaming industry in India is estimated to be US$5,584m by 2028 and India's OTT market is one of the fastest-growing globally. These statistics underscore the remarkable pace at which India's OTT market is expanding, outstripping global trends. It's a clear indication that India is not just following global digital trends, but actively shaping them, setting the stage for innovative content delivery and consumption in the years to come.

In fact, 66% of Indian consumers have a subscription to more than 1 OTT app. And 50% of Smart TV users prefer to watch content at home on their smart TV than on their mobiles or other devices. 

The technological advancement, coupled with the decreasing cost of Smart TVs, has made CTV accessible to a much broader segment of the Indian population. Additionally, the diversity of content available on CTV platforms caters to India's vast linguistic and cultural heterogeneity, offering something for every viewer. According to a report by PwC, OTT operators who focus on fresh and original programming are most likely to win customers. Hindi language original content played a major part for the largest OTT player in India. Regional content that caters to the country’s distinct languages will stand out. This points towards a future where content variety and linguistic inclusivity are not just beneficial but essential for success in the Indian CTV landscape.

The Future of CTV Advertising in India: Trends & Projections

The rapidly evolving landscape of Connected TV (CTV) advertising in India has made it imperative to explore the trends and projections that are shaping its future. Driven by technological advancements and shifting consumer behaviors, here are some of  this burgeoning sector’s latest trends that will result in its transformative change:

1. Programmatic advertising on CTV

Programmatic advertising in the CTV space has been the real game changer and has revolutionized the way advertisers reach their target audience. This advanced method leverages automated technology to buy and optimize digital advertising space across CTV platforms. Unlike traditional TV ad buying, which is often manual and based on broad demographic data, programmatic advertising on CTV offers precise targeting, enhanced audience segmentation, and real-time bidding. This means that advertisers can deliver personalized ads to viewers based on specific interests, viewing habits, and even past online behavior. Furthermore, as brands start to leverage omnichannel strategies, programmatic-based CTV will help advertisers automate and scale their advertising efforts and reach their ideal audience.

2. Diverse content production for viewer engagement 

As of 2023, the number of households in India that owned connected TV sets amounted to 32 million.  With the increasing adoption of CTV among Indian users, we’ve seen an increasing demand for original series, movies, and live sports on CTV platforms. As the market evolves, we may see an increasing likelihood of localized content catering to the diverse linguistic and cultural tapestry of India, further solidifying CTV's role in the mainstream media. Producers and streaming platforms are actively investing in content that resonates with the diverse tastes and preferences of Indian viewers. With over 46 OTT applications available, there is an expectation of increased advertising prospects, allowing brands to effectively reach and engage with prospective customers. Additionally, as AVOD services continue to grow, it's anticipated that there will be a surge in the use of CTV advertising among marketers, thereby unlocking new avenues for revenue generation.

3. Personalization and data-driven advertising

The future of advertising in the CTV space is increasingly leaning towards personalization. The CTV industry in India, with its unique blend of technology and viewer insights, is indeed setting a new benchmark in the world of digital advertising. The ability to target cross-screen audiences without overwhelming viewers is achievable through the sophisticated use of data and analytics. 

In 2024, personalized content and data-driven advertising are only set to intensify, with advanced analytics and machine learning algorithms playing a pivotal role in understanding viewer behavior and preferences.  With mediasmart’s technology, it is possible to serve ads based on weather conditions. You can make your ads relevant by dynamically changing ads based on the weather such as showing ice creams when it's hot and showing waffles with ice cream when it's colder than usual.

Additionally with OpenRTB 2.6, CTV and OTT publishers have started sharing information on the content being streamed by the user. These include content title, series, genre, and rating. Based on this information, advertisers can serve ads that are more relevant to what the viewer is watching. mediasmart’s newest feature, AI CTVSafe, automatically filters out risk categories and allows advertisers to ensure alignment between advertising and CTV content, thereby preventing any discrepancies that could adversely impact brand perception.

Personalized ad experiences are rapidly becoming a cornerstone of modern advertising strategy. This shift towards customization in CTV advertising reflects a deep understanding of viewer preferences and behaviors, offering a highly tailored viewing experience.  Unlike traditional broadcast methods, CTV allows advertisers to deliver ads that resonate on a personal level with each viewer. Leveraging data insights from the user's viewing habits, interests, and even online activities, CTV platforms can present ads that are not just relevant, but almost intuitively aligned with the viewer's current needs and preferences. For advertisers, this means a more efficient use of their ad spend, ensuring that their messages are seen by the most receptive audiences. As CTV continues to grow, these personalized ad experiences are set to redefine the advertising landscape, offering a unique blend of precision and creativity that was once unimaginable in traditional TV advertising

4. Omnichannel consumer journeys

The evolution of Connected TV (CTV) advertising is taking a significant leap forward by integrating omnichannel consumer journeys that encompass mobile and Digital Out-of-Home (DOOH) advertising. This holistic approach is reshaping how brands engage with audiences, offering a seamless and cohesive experience across multiple touchpoints. 

Consumers no longer interact with brands through a single medium. With mediasmart’s household sync, advertisers can target viewers on mobile devices within the same household,  incentivizing viewers to convert. Partnering with the right DSP and leveraging innovative strategies can help transform the viewers’ experience and enhance brand recall. 

The integration of CTV with mobile and DOOH advertising allows brands to create a consistent and continuous narrative across different platforms. For instance, a viewer may see an ad on CTV, which is then reinforced by a related mobile notification or a DOOH display while commuting. This interconnected strategy ensures that the brand message not only reaches the audience through various channels but also resonates more deeply by providing a unified brand experience. 

India's CTV Landscape: What's Next?

As we look towards the future of India's Connected TV (CTV) landscape, it is evident that the sector is poised for substantial growth and innovation. The convergence of technological advancements, increased accessibility of Smart TVs, and a diverse content offering tailored to India's rich cultural and linguistic fabric are setting the stage for an exciting era in digital entertainment and advertising.

As the industry continues to adapt and grow, it will be essential for stakeholders to remain agile and responsive to the changing dynamics of consumer preferences and technological developments. The future of India's CTV landscape is not just promising; it's an exciting era ripe with possibilities for innovation, engagement, and connectivity