The Connected TV market is presently growing at a considerable pace and seems to have a promising future
By Arpit Jain
Ever since digital disruption has emerged at the forefront, technology rules every aspect of our lives. Right from the time we wake up and work throughout the day, to the time we hit off the bed, be it work or pleasure; every facet of our lives has turned digital. One such prominent instance is when we bid goodbye to the traditional TV sets for the smart TVs, and we are now embracing Connected TVs!
Connected TV: The new-age concept
The consumers are gradually moving towards the Connected TV (CTV). Technically defined, CTV is the integration of the internet and web 2.0 features into the new-generation TV sets. In simpler terms, connected televisions can be supported by any device designed in such a way that it is compatible with multimedia. Connecting to the internet, they encompass smart TVs, set-top boxes, TV sticks, streaming devices such as Chromecast, and gaming consoles including Xbox, PlayStation, etc. With CTV, viewers can access video streaming services such as Netflix, YouTube, as well as search for movies, photos, and other digital content on the web.
Connected TV versus OTT and PTV
Connected TVs support addressable TV advertising capabilities. They thrive on technology and represent the tech-based foundation of Programmatic TV (PVT) support. The TVs connected with OTT, on the other hand, are the same as internet TV consumption but do not require an active cable subscription or TV streaming devices. They help to reach the connected TV advertising market using the OTT apps found in the app stores. The users however would need an internet connection to avail their services.
Programmatic TV is a concept that broadcasts Connected TV ads to the target audience leveraging the benefits of algorithmic ad purchasing. It encompasses tech-based automation of planning, buying, measuring, and optimizing traditional TV programming. Algorithmic purchasing is enabled by programmatic software that is specifically adapted for brands and exists as programmatic advertising platforms.
PTV is an essential element for the individualization of advertising strategies. With this concept, ads can be served virtually on any device that has an internet connection. It helps in targeted and focused advertising as brands can show different ads to distinct target groups or households. As a result, the users will watch different ads while watching the same show as per their interests, age, income levels, etc.
Performance metrics to track Connected TV
CTV is digital programmatic advertising but comprises a TV commercial as an ad unit instead of a banner ad. It utilizes digital measurement and hence comes with a promise of precision and accuracy. This attribute is what gives CTVs an edge over linear TVs.
Connected TV ads are purchased and sold in invitation-only private marketplaces. This leads to fewer participants and higher win rates. The advertisers can reach premium inventory in case of such addressable TV programmatic auctions.
When we consider measuring the effectiveness of the Connected TV ad campaign, the number of clicks is not a feasible option. Instead, descriptive performance metrics such as costs per completed view, video completion rate, and cost per mile should be considered. Measuring Connected TV offers insights that enable advertisers to run ads and have a number as to how many people saw the ads along with the exact digit. It also gives advertisers in-depth analysis of the completion rates, providing details about how many people saw the ad from the start to the end, how many dropped out, etc.
However, marketers in the present times demand a 360-degree analysis and measurement of the customer journey so that they can gauge the impact of CTV campaigns and modify their strategies accordingly. This is where new-age tools of CTV measurement and campaign management step into the picture! These solutions help marketers have access to information about the ad campaign’s success; the action viewers took after watching the ads, as well as understand the performance of their marketing efforts spread across channels. The idea is to find a platform that can help deliver accountable, efficient, and reliable outcomes for CTV measurement.
The present and future landscape of the Connected TV market in India
The Connected TV segment is one of the exponentially growing markets in India. According to Modor Intelligence, the Indian smart TV and OTT market is projected to grow at a CAGR of 5% from 2021 to 2026. The affordability of smart televisions, rising data penetration, and availability of global content are the major factors pushing the growth of the internet-enabled television sets. These reasons collaboratively will play a major role in replacing the traditional linear variants in the times to come. Considering India has adopted smart TV wholeheartedly, Connected TV is expected to be the next game-changing trend for the industry as well as the viewers!
The exponential growth of Connected TV advertising and OTT market
As reported by Statista, India’s video OTT market was valued at $1.5 billion in 2021 and is anticipated to grow significantly to hit the $4 billion mark by 2025 and $12.5 billion by 2030. Adding to it, EY projects that connected smart television sets are anticipated to grow to 14 million by 2023 and 40 million by 2025. This growth will be pushed by the increase in wireless and wired broadband connections along with the spike in easy availability and affordability of low-cost smart television sets. These statistics are indicative of the fact that the future of entertainment is indeed OTT and Connected TVs. Hence, it would be appropriate to say that the growing preference for OTT platforms is rendering a positive impact on the overall smart TV market’s growth in India.
The modern consumers are tech-savvy and increasingly prefer online content. They come with high disposable incomes and demand useful, targeted as well as high-end communication. Advertisers in an attempt to tap the growing Connected TV market and offer relevant as well as offer engaging experiences to the target new-age consumers are thus relying on Connected TV advertising!
Summing up: Connected TV carving the path for a promising future of the adtech industry
2021 was indeed a transformative period. There has been a significant shift in how consumers connect digitally as well as there has been a surge in connected screens. Considering new-age consumers are spending more time on Connected TVs as well as OTT content and will continue to do so in the times ahead; ad revenues will eventually and consequently spike in this domain.
The Connected TV market is presently growing at a considerable pace and seems to have a promising future. It is thus garnering advertiser attention and interest as they wish to harness the power of digital advertising and reach their target customers effectively yet innovatively. Hence, with the Connected TV market booming, CTV advertising will also flourish. This trend will further transform the adtech industry in the times to come and hence the sector’s future seems progressive.
The author is founder and CEO of GreedyGame. Views expressed are personal.
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