Will 2024 be the year of Connected TV advertising?

• Experts predict a significant shift in advertising strategies in 2024 

• Surging CTV adoption is attributed to factors like internet availability, affordable smart TVs, and free streaming

• The rapid growth of CTV is projected to reach 45 million households in 2024 

• Experts opine on how marketers should strategically plan their media budgets to leverage CTV's potential

The surge in adoption of connected television (CTV) across the country can be attributed to several factors, including the widespread availability of the Internet, more affordable pricing for smart TVs, and other key drivers. Notably, JioCinema offering free streaming of IPL matches last year has also significantly fuelled this growth.

The latest FICCI-EY report (Federation of Indian Chambers of Commerce & Industry) stated the number of smart TVs connected to the internet each week rose to 19 to 20 million, up from around 10 million in 2022.

According to a report by Counterpoint Research, a global technology market research firm. The report mentions that smart TVs accounted for over 90% of total TV shipments last year, signalling a clear preference shift among viewers towards smart television sets.

With such a vast number of screens, connected television advertising significantly contributes to this burgeoning medium.

Moreover, a recent report by GroupM India (media investment company) TYNY 2024 underscores the rapid growth of connected television, projecting it to reach 45 million households with a year-on-year increase of 21%.

The report also attributes this growth to compelling content, especially major sporting events.

The significance of connected television as a game-changing medium was also the focal point of discussions at Adtech 2024.

afaqs! spoke to experts to understand the significance of CTV, and how marketers should strategically plan this year’s media budget.

Edited excerpts

Gazal Bajaj, head, media management, Nestlé

If you look at external reports, there is a big projection that linear TV will not continue to be produced at a massive level. So, as a brand, we’re experimenting to find out the right way of leveraging CTV.

India continues to still have 85% single TV households, which is exactly why we as a brand have taken an early start on trying to understand connected television and how it will work out for us.

As a media planner, it doesn’t feel like we’re planning for TV, as the metrics involved resemble those of digital media.

Many of us believe that CTV is for the upper segment, but I don’t believe that is true. If manufacturers are not making linear TVs, then it will not just be limited to the upper segment.

CTV will reach every Indian household, but maybe the resolution or connection quality will not be that good. But in the market, there is a huge influx of CTV, not just from the upper segment.

Nestlé advertises every category on CTV, as we believe that one who is on CTV will not be available on linear TV anymore. CTV is in the mix, across categories.

This year, with multiple events in 2024, it will be exciting. For a lot of advertisers like us, the problem of plenty and the challenge of making choices make it even more difficult to decide what medium to go for.

Anuja Mishra, EVP and CMO, Honasa Consumer (Mamaearth, The Derma Co, BBlunt, Aqualogica)

We're one of the first companies to run campaigns that were only CTV-focused.

For brands, if they are looking to target rural consumers, CTV won't be the right choice. But if you're looking to target the top 50-60 million households, it is a good-to-go medium.

The consumer's definition doesn’t change in terms of TV viewing or digital viewing. Fundamentally, the TG is the same. But there are different occasions for TV viewing and different occasions for digital viewing. As a brand, we should ensure that triangulation should be done, and reaching customers through multiple touchpoints.

Mama Earth, as a brand, is more digitally savvy, our belief is a lot of consumers are digitally ambivalent.

For IPL, there is a new trend as legacy brands are moving towards digital, while new-age brands are moving towards television. This trend was seen during the Cricket World Cup in 2023.

Atul Jain, president, Aqualite

CTV is an emerging medium, and brands will consider it. This year, starting from this time, there are too many sporting events other than cricket like the Olympics generating significant interest.

The Olympics present an opportunity for all brands, with numerous icons and memorable moments created during the event. The anticipation among viewers is much higher compared to last year.

In the current situation, there is a question regarding the accuracy of digital data and the correct reporting of such data.

There needs to be a strong watchdog within the community that can ensure the accuracy of the data being disseminated.

Hari Krishnan, managing director and head, Publicis Groupe India

The entire Lok Sabha elections are providing numerous content opportunities for brands to engage with and ample conversation for a brand to participate in.

The pre-buzz of the elections coincides with cricket, which will be of interest to brands.

Elections can be looked at in two ways: one is whether the younger target group is interested or not; the answer is unknown yet.

There are a lot of first-time voters, a significant number of whom are predominantly digital natives. Consequently, brands may choose to partner with traditional news platforms to target the older age group.

Many brands are not going to take a political stand but will aim to raise awareness to vote and encourage participation.

I believe that in these elections, influencers will play a vital role. Influencers will play it safe and not commit to any particular political party, and brands will partner with them.

Overall, it is a year with multiple events, and the bigger conversation is the rise of Bharat across genres.

Largely FMCG and app brands will make use of cricketing tournaments like the IPL 2024 and the Men’s T20 Cricket World Cup.