Home screen advertising: CTV gets a landing page for premium advertisers
While the opening home screen, or landing page if you will, of our CTVs has always left us spoilt for choice in terms of content, from picking between subscribed OTTs to FAST channels (never mind what show or movie we’re going to watch within the selection), there are new actionable visuals which are demanding our attention, as we move from euphoric cricket tournaments to an optimistic Olympics. Welcome to a new marketing destination: home screen advertising. According to Nikhil Sharma, Chief Growth Officer at Mediasmart by Affle, home screen advertising typically is done to maximize visibility and brand recall, encourage interactions with ads such as taking the user to download the app (CTV app install) or taking them to a redirected link directly to the content.
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“On CTV, there are different ways in which advertisers can choose home screen ads. These can be in the form of static or dynamic banner images displayed at the top of the home screen or as tile ads within the grid of app icons such that they resemble app recommendations. Brands have the option to choose between a 24-hour window of taking the inventory and having a 100% share of voice, or they can also choose to have a sustained campaign that runs for a longer period,” he says.
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Numbers Play Indeed, Indian brands are increasingly recognizing the potential of smart TV advertising. Key players across various sectors are leveraging this platform to boost their brand presence. For instance, “Prominent car manufacturers use these ads to highlight new models and features, driving consumer interest and test drive bookings. Entertainment and streaming services employ smart TV advertising to promote content, enhancing viewer engagement and driving subscriber growth or box office sales,” says Prabhvir Sahmey, Senior Director - Ad Sales - India, for Samsung Ads. According to Kumar, while CTV home screen advertising largely remains skewed towards OTTs, the home screen has also attracted Media and Entertainment categories to pull users to new shows, blockbuster movie releases, and app promotions within the OTTs environment. More recently, this space has also been explored by brands from Retail, Automotive, Luxury, and CPG brands. While still comparatively small, India's CTV market has seen users grow from 34 million to 45 million, and the CTV ad spends in the country are expected to grow at a CAGR of 47% until 2027, as per a recent Kantar report. “We’re seeing retail and CPG brands capitalize on smart TV ads to attract both online and offline shoppers, boosting sales and brand loyalty. These brands have reported impressive ROI from smart TV advertising, thanks to the high visibility and engagement rates. The immersive, interactive nature of the ads, coupled with precise targeting, results in superior brand recall and conversion rates,” says Sahmey. Paras Mehta, Business Head – Programmatic Solutions, Interactive Avenues (digital arm of IPG Mediabrands India) points out that digital media is known for its robust measurement and analytical capabilities, and CTV upholds this tradition. “It provides detailed insights into user engagement, creative performance, and content consumption, facilitating more effective campaign optimization. Reach, frequency, and engagement rates serve as primary metrics for gauging campaign success.” Beyond the screens According to Statista, as of 2023, ad expenditure on connected TV or CTV in India amounted to more than 80 million U.S. dollars. This trend is projected to follow an upwards trajectory for at least the next five years, with CTV ad spends to hit nearly 400 million U.S. dollars by 2027. For brands to have the right visibility, it’s important to have access to the right inventory with Smart TV manufacturers. “This is where expertise of CTV platforms becomes important. On mediasmart, we are integrated with leading OEM brands and have access to both home screen as well as FAST channel inventories that allow brands to create impactful high-visibility campaigns. Ad placements can be done both via programmatic and direct routes,” says Kumar. Mehta says that in terms of the creative proposition for home screen advertising, brands have a plethora of options to choose from across the marketing funnel, including Masthead, Carousel, Overlay ads, interactive ads, and Instream ads. Pricing is mainly determined by the ad format and duration, with contextual relevance and device type also playing a role. “For one of our internet-first clients, we combined Home Screen Advertising with regular digital activation. The campaign recorded a 21% increase in incremental reach compared to other digital activations. This demonstrates the exclusive and incremental audience reach driven by Home Screen Advertising. Interestingly, CTV was able to deliver substantial reach in Tier 2 cities as well,” he says. And this is not just limited to CTVs; indeed, the Smart TV device manufacturers seem to have picked up the trick from their smaller cousins. Sharath Madhavan, Lead - Performance Marketing, TheSmallBigIdea points out that phone manufacturers pre-install ad placements on their devices as part of their hardware strategy. “While the hardware route offers high reach for advertisers, it raises privacy concerns and presents difficulties in measuring ROI. This approach might be more attractive to manufacturers for the revenue it generates, but it can be challenging for advertisers due to limited targeting options and potential user resistance.” In a companion piece, to be published tomorrow, we will be tackling how these hardware manufacturers are measuring the performance metrics and offering prices for home screen advertising.