With a variety of OTT apps to watch from, that too at the convenience of your mobile phone, more and more people are ditching regular TV and switching to connected TV and OTT as a mode of entertainment. Gone are the days when you had to schedule a certain show and put reminders on TV, now you can watch anything from anywhere given you have a stable internet connection. A report by Statista revealed that by 2024, the number of households in the US that are not paying for traditional TV services will increase to 46.6 million. In times like this, what will happen to the advertisers who pay hefty sums to feature their ads on TV?
What is CTV Advertising?
Although OTT apps can be viewed on phones and other smaller devices, nothing can beat the joy of consuming content from a big TV screen, and this is where CTV comes in. Connected TV is any smart television set that is connected to the Internet. This lets the users stream content from the internet including OTT content on their TV. As the world evolves, we can do nothing but evolve with it. Connected TV advertising is the evolved version of traditional TV advertisements where video ads are delivered through a streaming service when the consumer is watching content on an actual TV set. This new medium offers advertisers unique opportunities to deliver targeted, interactive, and measurable ads, marking a new era in digital marketing.
What does this mean for the Indian market?
According to a report published by Dentsu India, a whopping rate of 65% of Indian households are ditching traditional channels and adopting smarter innovations like Smart TVs and internet enabled set-top boxes. As much as 4.5 million smart TVs were shipped to India according to a report by Counterpoint Research. According to several industry analyses from leading firms like CII, KPMG, the number of households adopting CTV in India was estimated to be between 10 and 14 million by 2022, with ongoing daily expansions in user base. With such an uphill growth for CTV in India, the scope of opportunity for advertisers if they tap into the market is undeniably huge. Furthermore, due to programmatic ad placement done with the help of automated content recognition, a report by Kantar states that 63% consumers opine to CTV ads being more personalised to their liking.
Why does CTV Advertising click with advertisers?
CTV utilises consumers’ information like geographical location, age group, income, purchasing history, etc. to produce targeted advertising. Furthermore, advertising brands put in their first-party data to reach a wide range of audiences who are currently their customers or have shopped from them before. The rise of ad-supported streaming services like Disney+Hotstar and HBO Max’s ad-supported tier offers advertisers new avenues to reach audiences. These platforms provide premium content at a lower cost to consumers, funded by targeted advertising. CTV advertisement also offers space for edits. When advertisers send an ad to traditional TV channels, they are not allowed to make edits in the ad. However, in the case of CTV advertising, advertisers can make edits in the ad in between too.
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