Connected TV (CTV) advertising in India is experiencing explosive growth, with ad spends more than tripling in the past two years to reach a significant ₹1,500 crore in 2024. This surge marks a pivotal shift in the country’s digital advertising landscape, with CTV now accounting for 1.5% of the total digital ad expenditure. Fueling this remarkable expansion is a robust annual growth rate of 40%, positioning CTV as a key engine in India’s burgeoning entertainment economy.
This impressive growth trajectory is highlighted in the latest report by Deloitte and Media Partners Asia (MPA). The report underscores the increasing appeal of CTV advertising for marketers, driven by the escalating penetration of smart TVs across India and the growing affordability of broadband internet. Unlike traditional television commercials, CTV offers advertisers enhanced targeting capabilities, leveraging data on viewer habits, preferences, and demographics to ensure more precise and effective ad delivery.
CTV advertising stands out due to its ability to combine the immersive experience of television with the data-driven precision of digital advertising. Brands are increasingly leveraging innovative ad formats such as pause ads, pre-rolls, mid-rolls, auto-expanding billboards, and interactive “click-to-WhatsApp” integrations to capture the attention of highly engaged audiences within the connected TV environment.
The effectiveness of CTV campaigns is further validated by impressive performance metrics. Video completion rates on CTV often exceed 90%, and viewability consistently remains above 95%, largely attributed to the non-skippable, full-screen nature of the ad formats on this platform. This high level of engagement translates to better brand recall and a more impactful advertising experience for viewers.
The rise of CTV advertising in India is occurring within a broader context of strong growth across the film, television, and Online Curated Content (OCC) industry. In FY24, this combined sector generated a revenue of ₹1.1 lakh crore (US$13.1 billion), demonstrating an 18% growth since FY19, even amidst the disruptions caused by the COVID-19 pandemic.
Interestingly, India’s entertainment consumption pattern differs from developed markets where streaming services have often cannibalized traditional linear TV. In India, linear television is expected to maintain a modest growth, with the OCC segment expanding the overall entertainment pie rather than disrupting traditional formats, at least in the medium term. The combined film, TV, and OCC industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 6-7% over the next three to four years.
The economic contribution of the entertainment sector in India is substantial. In FY24, the industry generated a total gross output of ₹5.14 lakh crore (US$61.2 billion), with a direct contribution of ₹1.41 lakh crore (US$16.8 billion). Television remains the largest contributor, followed by the film segment and the rapidly growing OCC sector.
Looking ahead, the potential for CTV advertising in India is immense. While currently representing a small fraction of the overall digital ad spend, projections indicate that CTV’s share could rise to 7-8% in the near future, fueled by its strong annual growth rate. The increasing adoption of smart TVs, coupled with the evolving content consumption habits of Indian viewers, positions CTV as a crucial channel for brands looking to connect with a digitally engaged audience at home. Furthermore, the cost-effectiveness of CTV, with a cost per completed view (CPCV) reportedly 20-30% lower than mobile or desktop, makes it an increasingly attractive and efficient medium for advertisers seeking measurable outcomes.
Key Highlights:
- CTV ad spends in India have tripled to ₹1,500 crore in 2024, now constituting 1.5% of the total digital advertising market.
- This growth is driven by increasing smart TV penetration and affordable broadband, with a robust annual growth rate of 40%.
- CTV offers enhanced targeting capabilities and high engagement rates through innovative ad formats.
- India’s entertainment industry is experiencing overall growth, with CTV emerging as a significant contributor alongside traditional TV and OCC.
- Projections indicate a substantial future growth for CTV advertising in India, making it a key channel for advertisers.