Campaign India Team
Feb 28, 2024

16% of TV ad spend will be devoted to addressable TV products and services on connected TVs by 2026: GroupM

Currently, addressable advertising accounts for 9.8% of TV's ad spends

Photo courtesy: Unsplash
Photo courtesy: Unsplash
In the second edition of GroupM's 'The Changing Landscape of Indian Television', WPP's media investment arm believes that 16% of TV ad spend will be devoted to addressable TV products and services on connected TVs by 2026.
 
The current contribution of addressable TV products and services on connected TVs is at 9.8%, representing INR 45Bn in ad revenue.
 
The report added that the total size of the TV market in India grew by 1.1% between 2020 and 2023 to reach 217 million households. Brazil (1.5%) and Mexico (1.4%) were the only markets that grew faster during this time.
 
 
Takeaways from the report:
  • Addressable TV homes to surpass 45 Mn by end of 2024, covering 21% of Indian TV Homes; a growth of 32% over 2023
  • 117% growth in delivery of paid media to CTV devices from 2022-2023
  • CTV growth emerges from HSM markets, witnessing 4X growth in impressions from Maharashtra, Haryana, UP, MP, Jharkhand, Uttarakhand, Chhattisgarh & Bihar over last 12 months. Karnataka leads growth in South with 7X growth
  • The survey stated that two-thirds of the respondents expressed that they found ads on OTT services more appealing and relevant than their linear TV counterparts, and 41% declared willingness to view ads on OTT Service to reduce subscription costs
  • Two-thirds of the respondents co-view while watching addressable TV services, making it comparable to traditional TV viewing patterns
  • 11% of respondents are of cord-cutters but 54% of those cord-cutters continue to watch addressable TV services
Prasanth Kumar, CEO - GroupM South Asia, said “Embracing the transformative tide of technology, our evolving TV landscape in India, from terrestrial to Connected TV, embodies a journey of perpetual adaptation. Serving as the adhesive in Indian households, TV not only unites families but now, with newfound digital capabilities, empowers brands to engage meaningfully. In this age of attention economy, where convenience meets engagement, our commitment is to unlock the power of TV advertising through advanced TV solutions, fostering a future characterized by insight and fascination for advertiser and broadcaster alike."
 
Atique Kazi, president – data, performance and digital products – GroupM India added, “As we navigate the dynamic landscape of television advertising in India, the forecast of a 10% CAGR growth over the next five years signals a remarkable evolution. The surge in Connected TV advertising, anticipated at an impressive 31% CAGR, underscores the pivotal role it plays in reshaping our television ecosystem. Recognizing the importance of engaging with elusive cord-cutters and cord-nevers, this report delves into the transformative factors and societal influences driving this evolution. Our aim is twofold: to dissect the growth drivers and to provide a profound understanding of addressable TV viewers and their evolving preferences, illuminating the path forward in this exciting era of television.”
 
The primary research leveraged in this report was completed in November 2023 and comprised a survey of more than 4,000 online respondents in India with 'high social media engagement' recruited via Facebook and Instagram.
 
 
 
Source:
Campaign India

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