Indian CTV penetration boosting addressable TV advertising

Addressable advertising in India will exceed 16% of total TV ad revenues by 2026, with nearly 10% of TV ad revenue coming from long-form streaming video, predicts a new study. 

The research from media investment company GroupM highlights a significant transition from traditional linear TV to connected TV (CTV) across the Indian television landscape.

Why advertising matters

With increasing mobile penetration and fast internet in India, the number of smart TV-owning households in the country is on the rise. CTV content and its popularity therefore offers marketers the chance to further monetise this opportunity and look at a greater share of TV advertising within the marketing mix.

About the study

GroupM Nexus, in collaboration with Ampere Analysis, conducted a survey involving more than 4,000 online respondents in India who exhibited high social media engagement. The survey included both male (52%) and female (48%) respondents across various age groups (18-64), with 40% residing in metro cities.

Key insights

• India is one of the largest TV markets worldwide, second only to China. According to Ampere Analysis, the total number of TV households in India surged to 217 million in 2023 (from 210 million in 2020).
• Widespread availability of reliable high-speed internet has helped in the adoption of OTT services, with 52% of Indian households having internet access in 2023, up from 36% in 2020. This figure is expected to reach 59% by 2026.
• 47% of respondents owned a smart TV and 25% of non-owners planned to purchase one within a year. Connected TVs are expected to reach over 45 million households by the end of 2024.
• Subscription video-on-demand (SVOD) services now reach 88.3 million households, making India the world’s third-largest SVOD market with over 160 million subscribers.
• 11% of respondents were found to be cord-cutters who no longer use any pay or free TV services; 54% of them continue to watch addressable TV services.

Opportunities for marketers

• High receptivity to advertising: 65% of Indian internet users (486 million users) are willing to watch ad-supported video content.
• A key channel for sports marketing: 44% of respondents enjoy watching sports, making them a crucial target for advertisers due to their high engagement levels and higher income levels, with 13% reporting earnings above average.
• Reach more audiences: Combining addressable TV with YouTube advertising can reach and target up to 90% of respondents.
• Active shoppers: Addressable TV audiences have reported household incomes 1.09 times higher than households watching free TV services. E-commerce players can take heart knowing that the audience more than actively spends on shopping and leisure items compared to non-addressable viewers.