Connected television (CTV) is poised to become the next disruptive force in the Indian advertising industry. While the country’s digital ad market currently stands at Rs 397 billion, CTV ad spends are estimated to be around Rs 7.2 billion, accounting for just 1.5% of the total digital ads. However, experts predict that CTV ad expenditure will grow significantly to seven to eight percent of total digital ad spending over the medium to long term, representing a 40% year-on-year growth.
Nikhil Kumar, Chief Growth Officer at mediasmart, believes that as CTV continues to evolve and AI technologies become more advanced, there will be further advancements in ad serving, placement, and measurement of CTV advertising. With the greater role of GenAI in advertising, CTV ads will become more targeted and personalised, leading to more engaging and relevant ads tailored to individual viewers.
Marquee properties like the Olympics present a unique opportunity for advertisers to leverage CTV ads. The Olympics attract a vast and diverse audience, making it an ideal platform for brands to connect with viewers and drive engagement. Advertisers can target diverse user groups throughout the event, ensuring maximum reach and impact. Personalisation is key in capturing and retaining viewer attention, and CTV ads offer a variety of ad formats to enhance brand awareness and engagement.
The trend of brands increasingly spending on CTV ads reflects the effectiveness of this medium in reaching targeted audiences and driving engagement. Sectors such as Consumer Goods, Automotive, Entertainment OTTs, Retail, and Consumer Technology have been early adopters of CTV advertising, with more brands across various categories actively participating in this space. Media planning in recent years has been dominated by new-age mediums like influencer marketing and CTV, indicating the growing importance of digital and streaming media channels in advertising strategies.
Looking ahead, the future of CTV advertising is expected to be shaped by advancements in AI technologies. GenAI will play a crucial role in making CTV ads more targeted and personalised, leading to increased engagement and relevance for viewers. AI-driven targeting on CTV goes beyond demographics, allowing advertisers to target at the household level, screen size, time, and weather of the day. Dynamic ad insertion based on live events will further enhance the impact of CTV advertising, ensuring that ads are delivered at the right moment to capture viewer attention.
As user identification becomes more consolidated, the future of personalised ads on CTV will evolve to deliver tailored content and advertisements based on individual preferences and viewing history. Advanced algorithms and machine learning will play a key role in analysing viewing patterns and preferences, ensuring that ads are not only relevant but also engaging. AI-driven creative optimisation and technologies will drive innovative use cases in cross-screen advertising, allowing advertisers to reach viewers across multiple devices with consistent messaging.
In conclusion, the rise of CTV advertising in India presents a significant opportunity for brands to connect with audiences in a more targeted and personalised manner. With advancements in AI technologies and the increasing adoption of CTV by advertisers, the future of CTV advertising looks promising, with the potential to revolutionise the way brands engage with viewers on connected TVs.