Through the open internet, marketers can reach up to 640 million users, reveals The Trade Desk report. From what is understood, the open internet is a diverse ecosystem that spans from over-the-top/connected TV (OTT/CTV) and music streaming platforms to online gaming, mobile apps, news and websites. It was also revealed that Indians are spending 52% of their time on the open internet but only 15% of ad spend is allocated there. While commenting on the open internet, the report also admitted that although walled gardens dominate ad spend in India, the trend is shifting. With 5G adoption accelerating and CTV expected to grow from under 40 million to 200 million users, The Trade Desk added.
From what is understood, the report is made after surveying 1000 Indian consumers. The report further states that OTT/CTV is India’s favourite destination for premium content with over one third of young adults trusting ads on this medium and 55% of the respondents admitted that they are more likely to view brands that advertise on OTT as more premium than those featured on YouTube. “Our research reveals that Open Internet engagement continues to grow, with around 640 million users, and a significant 80% have increased their time on these platforms. Notably, almost half of consumers spend their quality time on the Open Internet, with young adults leading this trend. Unlike social media, where users are in a passive ‘lean-back’ mode, Open Internet users are in a more active ‘lean-in’ mode. This active consumption is highly valued by advertisers because it ensures brand safety and effective content viewing,” Tejinder Gill, general manager, The Trade Desk, told BrandWagon Online. Open Internet channels like OTT and CTV are 16% more trusted compared to social media, he added.
The report reveals that Indians are more focused and engaged when consuming content on the open internet compared to social media platforms. On average, 33% of young adults report feeling engaged on the open internet, versus 29% on social media. Additionally, the report notes that social media ads are often seen as intrusive, with 27% of young adults finding them annoying, whereas ads on open internet platforms, such as music streaming services, are perceived as less intrusive.
Upon being asked about why users prefer Open Internet over Walled Gardens despite the latter offering more data protection and privacy, “As we start our day, our interactions often begin with the open internet—checking a news app, browsing LinkedIn, listening to Spotify, or receiving a call from Truecaller. Data shows that new users typically explore the open internet before delving into walled gardens. This shift in consumer behaviour reflects a growing preference for open internet platforms for news and information, as people seek to engage with content that fits their busy schedules. For instance, many opt for appointment viewing of family-friendly OTT content, reflecting a desire for brand-safe and scheduled content consumption. Despite this trend towards open internet engagement, advertising spend remains disproportionately focused on walled gardens.” Gill replied.
The open internet platforms drive higher ad recall compared to walled gardens. Data reveals that online gaming leads with a 25% ad recall rate among young adults, followed by live game streaming and news, both at 23%. Music streaming and OTT come next at 21% and 20%, respectively. In contrast, social media, a segment of walled gardens, achieves a 22% recall rate, while YouTube, also a walled garden, has a 17% recall rate. This demonstrates that open internet channels generally provide more effective ad recall compared to their walled garden counterparts. Furthermore, the report also revealed that young adult respondents are 41% more likely to find ads on music streaming platforms less intrusive compared to those aged 35 and above.
When asked about which age group is more concerned and aware of data privacy, “It’s clear that generational differences in digital awareness are significant. Younger generations, such as our children, are much more digitally savvy and educated from an early age, with open internet access being a norm. This shift reflects a broader trend where young professionals, who have grown up with digital media, are starting their media habits with digital platforms rather than traditional media like television or newspapers. The COVID-19 pandemic further accelerated this transition, pushing many of us to adopt digital news consumption. Consequently, younger generations are not only adapting to digital media but also influencing older generations, increasing overall awareness about ad fraud and spam.” Gill said. Nearly eight in 10 Indians have increased their time on the open internet with 76% expecting that this trend will continue.