The rapid growth of CTVs has piqued the interest of marketers and media planners to reach their audience.
Connected TV (CTV) viewing in India has seen a 31% increase since last year, revealed a report by Interactive Avenues and Matterkind titled “Decoding India’s Connected TV Ecosystem”. The FICCI-EY 2022 report stated that CTVs had grown to 10 million in India and predicted that they would grow to 40 million by 2025. With the rapid growth of CTVs, it has become an interesting point of contact for specialists marketers and media planners to effectively reach their audience.
Connected television is a television directly connected to the Internet and able to broadcast content on the big screen. It can be a smart TV or it can also be connected to the internet through internet-enabled media streaming devices, game consoles or set-top boxes. CTV growth is driven by lower internet costs, growth in streaming services, increased interest in OTT content, increase in streaming devices and increase in smart TV purchases.
It is quickly emerging as an ideal way for brands to directly target their audience. With connected TV, brands can advertise on the big screen while enjoying the benefits of digital advertising, such as targeting, measurement and interactivity.
Currently, in India, only Samsung offers advertising on its TV devices through its Samsung Ads advertising division.
“We serve ads on our millions of Samsung Smart TVs in the region, where we work with advertisers to position content and brands within the native TV experience. This also includes in-app video ads that run during short breaks ads on our free, ad-supported streaming TV service, Samsung TV Plus, which now has over 70 channels in India, many of them local,” said Prabhvir Sahmey, Senior Director – India and South Asia. Is, Samsung Ads.
However, brands can advertise on connected TV through apps such as YouTube and other ad-supported OTT platforms. These can be advertisements placed on the homepage of the device in the form of video or static advertisement. It can also be pre-rolls or mid-rolls in content. There are also interactive advertisements. For example, the color of the car in a car ad can be changed or a test drive can be booked while watching an ad. These features are currently available for mobile devices, but should soon be available for TV as well.
CTV’s audiences are younger, more affluent and more Internet savvy. The report “Decoding India’s Connected TV Ecosystem” indicates that this audience has a refined lifestyle and financial habits. They are also avid entertainment enthusiasts, with 43% owning multiple TVs, 53% owning more than three paid OTT subscriptions, and 43% spending at least an hour watching OTT shows daily.
This makes it ideal for categories such as Automotive, BFSI, Jewelry, Beauty & Cosmetics, Home Improvement, Luxury Travel and Media Entertainment. As its reach is currently limited to urban areas, brands that focus on these regions tend to advertise here.
Sahmey said the majority of his customers in India are “non-endemics” – brands that don’t have a TV presence in the form of streaming apps or TV channels. “It includes brands such as MG, TATA, Castrol, MAC Cosmetics and Universal Pictures. Many D2C brands are also rapidly adopting Samsung Ads,” he added.
CTV enables brands and media planners to target and measure their investments for advanced reporting and audience insights. Siddharth Dabhade, Managing Director, MiQ India, China & SAARC, believes that CTV should feature in every advertiser’s media mix today due to its unparalleled reach for cord cutters in India. MiQ offers advertising solutions for CTVs worldwide.
“Connected TV has already overtaken linear TV budgets in the United States, and it is the future of TV advertising. Eventually, linear television programming will shift entirely to the streaming space. Today, it’s an effective way for advertisers to achieve full funnel impact with higher average view rates of 95% and video completion rates of 97%,” he said. he declares.
Paras Mehta, business manager at Matterkind India, the programmatic arm of IPG, highlights three key benefits of advertising on CTV: budget, targeting and reaching younger audiences. As the younger generation disconnects from linear TV and increasingly consumes content on connected devices, this is a great way to reach them.
“Advertising on television has a huge cost. But with CTV, there is no budget barrier, since advertisers buy impressions, not spots. One can start a campaign with a budget as low as Rs 5 lacs. Also, it is not a pan-Indian campaign and advertisers can target their viewers specifically. So viewers can see different ads based on their interests and preferences,” he said.
Dabhade suggests a few other benefits. “It is also possible to retarget on other screens, such as mobiles, tablets or PCs. And the call to action is possible via QR codes or landing pages,” he said .
While there are many other ways to reach digital audiences, CTV audiences are more engaged and highly receptive to advertising. Gavin Buxton, Managing Director, Asia, Magnite, an independent sell-side advertising platform, said that since the quality of content on OTT platforms is quite high, it attracts a certain audience and purchase intent is also higher here.
“In this environment, ads enjoy higher visibility, have a higher completion rate, and can’t be skipped, so it’s a great way for brands to get their message across. social or user-generated content, which also allow brands to reach audiences, this is a more positive space. These platforms are more about killing time than a gray experience,” did he declare.
Despite its strengths, the medium has yet to grow in the country. Baskar Subramanian, co-founder and CEO of Amagi, a media technology company that provides targeted advertising solutions for CTVs, says advertisers are still on the fence due to reach and measurability issues.
“While CTV has the ability to measure audience and impressions, there are transparency challenges. The industry must create a transparent system to build trust. The data must be validated. Third-party monitoring capabilities must exist. The other issue is the metric. We need to have something equivalent to the gross rating point (GRP) of linear television. One agency sees this as a continuum in television. We need a comparison model,” he said.
Being a new medium, advertisers have yet to fully understand its value. Dabhade said that being a click-free environment, some advertisers still consider metrics like click-through rates to see campaign impact. Innovating and improving the quality of CTV creations is another challenge.
“While brands group CTV ads under programmatic, they don’t innovate or spend as much as they do on creatives versus TV ads. This reduces its impact,” he said.