CTV advertising involves displaying ads on internetenabled TVs, where users stream content through apps or devices. Affordable smart TVs and low-cost
broadband have expanded the CTV audience, making it an attractive medium for advertisers. Unlike traditional TV ads, CTV offers enhanced targeting using data
on viewers’ habits, preferences and demographics, enabling more efficient ad spend and precise audience segmentation.
In 2024, CTV ad spends surged from INR 450 crore in 2022 to INR 1,500 crore. CTV ads account for 1.5 percent of all digital ads in India, which is projected to grow to 7–8 percent in the near term, reflecting a 40 percent annual growth rate. OCC services offer a variety of CTV ad formats, including pause ads, auto-expanding billboards, pre-rolls, midrolls and click-to-WhatsApp integrations. These formats target engaged audiences to boost brand visibility.
The rise of smart TVs and connected TVs in India is transforming digital content consumption at home, driven by increased high-speed internet access and
the growth of OCC services. With 954 million internet users as of March 2024, India’s digital landscape is evolving quickly. The COVID-19 pandemic accelerated this shift as the demand for home entertainment surged, with more people turning to streaming services for fresh content. In 2024, the Indian OCC
sector audience base was 547.3 million, 38 percent of the population, up from 34 percent in 2023.
This growth has prompted TV manufacturers to integrate OCC services apps into Smart TVs, boosting sales. About 69.7 million people (13 percent of India’s OCC
sector audience) use Smart TVs for online content.
Read More:IPL 2024 fuels CTV boom in India as more advertisers harness its strength over linear TV
The rise of smart and connected TVs is also affecting the growth of the Pay TV market, with innovations such as connected set-top boxes, gaming consoles
and streaming tools transforming traditional TVs into Connected TVs. In 2024, the number of Connected TVs in India was expected to reach 45 million, making it the third-largest CTV market globally.
This shift offers opportunities for advertisers, with more inventory available for advertising. Additionally, addressable TV advertising, which accounted for 9.8 percent of TV ad revenue in 2023 (INR 45 billion), is projected to reach 16 percent by 2026.
Recently, experts told Storyboard18 that initially, CTV in India was viewed more as a brand awareness play – great for visibility, storytelling, and mass reach, especially among premium, urban audiences. This was particularly true for FMCG, automotive, and D2C lifestyle brands.
But the equation is shifting thanks to smart TV penetration across all geographical tiers, even performance-led sectors like fintech, gaming, and e-commerce are beginning to explore CTV as a user acquisition channel. In the last year or so, the smart TV penetration in all geographical tiers of the country has pushed app marketers to treat CTV as a performance channel.
This rise is especially pronounced in Tier 2 and Tier 3 cities. While Tier 1 audiences lean towards on-demand OTT viewing, Tier 2/3 cities are showing high stickiness for scheduled content streams—especially in sports, news, and religious/spiritual programming. Co-viewing on CTV is common in non-metros, leading to longer session durations and higher ad recall.”
They further highlighted that video completion rates on CTV typically exceed 90%, with viewability consistently above 95%, thanks to its full-screen, non-skippable format. In terms of cost efficiency, the cost per completed view (CPCV) is generally 20–30% lower than on mobile or desktop, driven by higher viewer engagement and reduced bounce rates.
Read More:CTV’s grip tightens on ad spends; brands see a ‘lean-in opportunity’