- Traditional TV viewing is rapidly declining
Indiawith the rise of smart TVs and the rising popularity of OTT services.
- Flexibility of the medium, easy search options and content variety make Indians switch
- India plans to spend $395 million on connected TV advertising by 2027.
- Traditional TV subscription revenue in India fell 6.2% in 2021, resulting in a loss of six million paid TV houses.
India will become the third largest TV advertising market within the next two years due to an increase in digital natives and the rise of smart TVs and OTTs, according to
Changing landscape of
Most of that growth will be fueled by an increase in Indian customers moving to smart TVs and devices, leading to connected TVs (
“The future of TV advertising is bright as the emergence of new technologies such as CTV creates even more room for customization,” said Prasanth Kumar CEO – South Asia, GroupM.
Connected TV (CTV) is directly or indirectly connected to the internet via: smart TVs, external streaming devices such as
Nearly 80% of users of linear or traditional TVs plan to switch to connected TVs within the next year.
EY-Ficci report that linear TV subscription revenues are down 6.2% in 2021, with the loss of six million pay TV homes.
Connected TV advertising will grow rapidly in India at a CAGR of 47% by 2027, the report said. India plans to spend $395 million on CTV advertising by 2027.
What is driving Indian audiences towards connected TVs?
There are three main reasons for the preference of connected TVs: flexibility in switching between channels, variety in the content catalog and ease of search.
The report also said that 63% of connected TV users think the ads shown to them are more personal. There is also a perception that CTV offers uninterrupted content and fewer ads, the report said.
“If convenience drives audiences to connected TV, addressability drives advertisers to connected TV,” the report said.
While Indian families prefer to watch documentaries, children’s shows, daily soaps, sports and movies together, this was not the case with web series that people want to watch alone, the report found.
However, the duration of TV consumption did not depend on the connection mode, as both connected and linear viewers watched TV for approximately 12 hours per week. In terms of pan-Indian preference, Western India favored connected TV and the East largely opted for linear TV viewing.
Smart devices and connected TVs
According to the report, connected TV users typically have 1.2 times more household income than linear TV viewers and are twice as likely to own smartphones costing nearly ₹40,000. Connected TV users are known to be more brand conscious and often enjoy a premium lifestyle. This included owning smart home appliances, surround sound systems, membership in health clubs and resorts with premium credit cards.
Compared to Linear TV respondents, Connected TV users were more likely to go out regularly, scroll through social media, meet friends and family, and even binge-watch TV shows on weekends, the report revealed.
Due to the rise of connected TV, traditional/linear TV viewers are gradually disappearing. The target audience of Indian TV advertising is also growing. Today, there are 20-22 million addressable TV homes in India, which is estimated to be 40 million by 2025. Addressable TV advertising is the ability to show different advertisements to different households as they watch the same content.
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