The dynamics of advertising in India are undergoing a significant transformation, with Connected TV (CTV) emerging as a pivotal platform for brands to engage with their target audiences. Against this backdrop, VDO.AI, a leading player in advertising technology, has released a comprehensive report shedding light on the evolving landscape of CTV advertising in India.
As per the reports, India is witnessing a surge in CTV adoption, with the market poised to become the third-largest globally by 2024. The trajectory of CTV growth is impressive, with the number of CTV users escalating from 5 million in 2020 to a projected 40 million by 2025. This exponential rise can be attributed to several key drivers, including enhanced internet connectivity, the proliferation of smart TVs, affordable content pricing, and shifting viewing habits among consumers.
“With 32 million+ households on Connected TV, it has become a powerful platform to reach affluent Indians. With the ability to now target users basis the screen size, it can be an exciting way to leverage the best of digital and best of TV. The right storytelling on CTV combined with relevant retargeting can help brands reach their business and marketing objectives,” Vikas Chawla, co-founder and director, Social Beat, said.
The report highlights a notable shift in consumer preferences, with CTV emerging as the preferred choice for 65% of viewers, compared to 35% for linear TV. This preference is reflected not only at the individual household level but also across various states and metropolitan cities of India. The dominance of CTV in major urban centers such as Delhi, Mumbai, and Bangalore underscores its profound impact on viewer engagement and preferences.
As the CTV advertising space becomes increasingly competitive, advertisers must employ strategic approaches to ensure their campaigns stand out amidst the clutter. Tailored messaging, interactive elements, contextual targeting, and strategic placement are identified as key strategies to enhance the effectiveness of CTV ads and maximise return on investment.
Interestingly, 48% of viewers actively search for products after being exposed to CTV ads.
Insights into viewer behavior provide valuable guidance for advertisers looking to optimise their CTV ad campaigns. Indian households spend over three hours daily watching content on smart TVs, with a significant portion preferring to stream online content during dinner time, often with family. Additionally, the duration of ad creative plays a crucial role, with 60-second ads garnering the highest attention.
“As Connected TV (CTV) continues to make a significant impact in various states and metropolitan cities, advertisers in India have a unique opportunity to capitalize on the growing demand for CTV. By leveraging data-driven insights and advanced targeting capabilities, we can deliver personalised, non-intrusive ad experiences that resonate with viewers.An insider tip from the report is to go beyond traditional commercials and create engaging, interactive content that adds value to the viewing experience,” Mrinal Lunia, CEO, Digitale India, said.
The report underscores the tangible impact of CTV advertising on audience engagement, post-ad actions, and conversion rates. A significant majority of viewers demonstrate increased responsiveness to ads on streaming platforms, leading to active product searches and subsequent purchases, highlighting the effectiveness of CTV as an advertising medium.