CTV adoption expanding beyond urban & top 8 metros: Rajiv Rajagopal
At the e4m CTV Conference, Rajiv Rajagopal, Business Head at GroupM, put India's substantial television market in the spotlight, adding that due to its large population, television penetration is around 70%. The number of TV-owning households has risen to 217 million, with a 1.1% CAGR in recent years. However, the emergence of connected TV (CTV) has been changing the landscape rapidly. Rajagopal was the keynote speaker at the conference where he discussed the topic "Cracking the Code: Understanding and Targeting the Connected TV Viewer." He pointed out that CTV has seen remarkable growth, with the user base increasing from 7 million in 2020 to 33 million by the end of 2023, expected to surpass 45 million by the end of the current year. This surge is attributed to factors like the rapid expansion of broadband penetration, which has grown by 72% in the last three years, reaching almost 45-50 million households by year-end. Additionally, the widespread availability of smart TVs is driving CTV adoption. Rajagopal noted that nine out of ten TVs purchased today are smart TVs, with both multinational corporations (MNCs) like Samsung and Xiaomi, and local players capturing significant market share. This trend is fueled by an increasingly affordable internet landscape in India, making data access more accessible through various channels, including mobile and fixed broadband. Overall, the convergence of factors like rising broadband penetration, the prevalence of smart TVs, and affordable data is driving the growth of connected TV consumption in India. He further shared that today broadcasters have also understood the point, and that's where he firmly believes that CTV today is not just an urban syndrome. “It has moved beyond urban and top eight metros,” said Rajagopal. He explained, “When you, as a consumer, switch on to your television, as default, it comes as an auto mode. But you have three different modes where you can stream content based on your data pack and its speed. You don't need high-speed internet only through broadband to consume content on TV; you can also have a slightly lesser speed of data and still consume content on television.” According to the report "The Changing Landscape of Indian Television," commissioned by GroupM, across almost 350-400 campaigns delivered by GroupM in the last year, between 2022 and 2023, there is a clear indication that impressions generated from each of these markets have grown. “Three years ago, if you had asked me, 85-90% of the CTV audiences were from top-tier metros, but that's no longer the case. Today, we are seeing deep penetration from markets like Haryana, Maharashtra, Uttar Pradesh, and Jharkhand, all showing extensive growth in the impressions being served,” said Rajagopal. He further explained that it's the right currency to look at because if there is an impression being served, it means that there is consumption of connected TV content happening over there. “This is pure connected TV content across all the OTTs and OEMs put together. There is no YouTube and no live cricket data involved in this.” Rajagopal highlighted that by comparing households with access to addressable TV to those without, significant shifts in consumer behavior and preferences emerge. Addressable TV, primarily represented by connected TV, allows advertisers to target specific audience segments. He said that in India, it's predominantly driven by connected TV, while in other markets, linear TV is also entering the addressable TV space. He said, “This transition from non-addressable to addressable TV households signifies a shift toward more personalized and targeted viewing experiences, impacting how consumers engage with content and advertising. Addressable TV households may exhibit different patterns of content consumption, with preferences for on-demand or streaming services, higher engagement levels with targeted ads, and varying levels of concern regarding data privacy.” He also added as this trend continues to evolve globally and in India, understanding and adapting to changing consumer behaviors will be crucial for advertisers and content providers alike. Rajagopal concluded with some anticipated trends in the CTV landscape over the next couple of years. He highlighted the challenge of cookie deprecation and the increasing necessity for consumer consent, even within smart TVs. Addressing this, he proposed an emergence of household IDs rather than individual IDs, allowing for targeting based on household characteristics and preferences. Rajagopal emphasized the importance of engaging with Gen Alpha, those born after 2010, who are highly internet-savvy and prefer voice interactions. Creating voice and interactive experiences within connected TV will be crucial for building a loyal base among this demographic. Additionally, integrating retail and e-commerce data into CTV delivery is a key focus, leveraging point-of-sale data and shoppable ads to drive offer-led or action-led campaigns. “These are the few future trends which we have started working towards and we believe that in the next couple of months or years, will unlock more power to CTV.”
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