INR 2,000 Crore and Growing: How Connected TV Is Redefining Advertising in India

Introduction: The Rise of a Hybrid Powerhouse

India's advertising ecosystem is experiencing a notable transformation, driven by the rapid growth of Connected TV (CTV). As more homes embrace smart TVs and streaming platforms, advertisers are following suit. CTV, which merges the expansive reach of traditional television with the data-driven targeting of digital platforms, is attracting significant investments—crossing the ₹2,000 crore mark in ad spending.

This shift signals more than just a trend. It's a paradigm change in how brands reach households—combining the credibility of television with the performance power of digital advertising.

CTV Defined: The Best of Both Worlds

Connected TV refers to any television set connected to the internet, enabling viewers to stream content via apps like Netflix, YouTube, Disney+ Hotstar, Amazon Prime Video, and regional OTT platforms. Unlike cable or satellite TV, CTV allows advertisers to target users based on behavior, demographics, or geography, similar to how ads are served on digital platforms.

It brings together two vital pillars of media:

• Television’s safety and familiarity: A controlled, large-screen environment with family co-viewing.

• Digital’s precision and flexibility: Real-time targeting, measurable engagement, and dynamic ad insertion.

In effect, CTV delivers not just eyeballs—but relevant, measurable, and brand-safe eyeballs.

Why Advertisers Are Doubling Down on CTV

So why has CTV seen such an explosive surge in ad budgets across India?

1. Shifting Viewing Habits

Audiences are rapidly migrating from linear TV to streaming platforms, especially in metro cities and among young, tech-savvy households. According to recent industry insights, India has over 40 million CTV homes, with projections suggesting that number will double by 2026.

2. Premium Environment for Brands

CTV content is largely premium—movies, shows, and sports. Unlike the fragmented experience on mobile, CTV ads play on larger screens in lean-back environments, often with multiple viewers at once, leading to higher attention spans and better brand recall.

3. Enhanced Targeting

CTV allows advertisers to move beyond traditional age-and-gender targeting. Brands can now reach specific segments—young parents in Delhi, fitness enthusiasts in Bengaluru, or Tamil movie lovers in Chennai—with contextual relevance.

4. Measurable ROI

Every ad served on CTV can be tracked, optimized, and reported, much like digital campaigns. Metrics like completion rates, viewability, brand lift, and even offline conversions are available—offering marketers far more insight than linear TV.

Sectors Driving the ₹2,000 Cr Boom

Several industries are capitalizing on the CTV opportunity, contributing to the ₹2,000 crore advertising surge:

• E-commerce & D2C brands: With clear call-to-actions and targeting, online brands use CTV to drive traffic and sales.

• Auto & Mobility: Big-ticket brands prefer large-screen formats for emotional storytelling.

• Finance & Insurance: Contextual ads during business or news programming have shown strong engagement.

• Tech & Mobile: App-based services and device manufacturers use CTV to showcase features with visuals and sound.

Interestingly, regional advertisers and SMEs are also warming up to CTV, thanks to its targeting ability and accessible entry points compared to national TV campaigns.

CTV vs Linear TV: Complement or Replacement?

It’s not a zero-sum game.

While traditional TV still commands a lion’s share of viewership, especially in rural and older demographics, CTV is cannibalizing urban and young audience segments. For advertisers, this creates a dual opportunity:

• Use linear TV for wide awareness and rural reach.

• Use CTV for strategic, urban-focused targeting with greater control.

Smart marketers are now building holistic AV (audio-visual) strategies, combining the strength of both platforms for maximum brand lift.

How CTV Brings New Precision to the Advertising Table

CTV’s real strength lies in data-backed intelligence. Here’s how precision plays out:

1. Geo-Targeting

Target specific cities, districts, or even pin codes—perfect for hyperlocal brands or regional launches.

2. Behavioral Targeting

Serve ads to viewers based on their interests—sports, food, gaming, or travel—derived from app usage and viewing habits.

3. Device Syncing

With multi-screen integration, CTV ads can be synced with mobile or tablet ads, enabling seamless cross-platform storytelling.

4. Retargeting

If a user skips your mobile ad, retarget them during their next binge-watching session on their smart TV.

This kind of targeting turns CTV into more than just an awareness channel—it becomes part of a performance marketing ecosystem.

Challenges in the CTV Ecosystem

Despite the momentum, there are challenges advertisers must navigate:

• Fragmentation: With multiple platforms, devices, and operating systems, delivering a consistent experience is complex.

• Measurement standards: Unlike digital where impressions are standardized, CTV measurement lacks unified benchmarks in India.

• Creative fatigue: Brands must develop CTV-optimized creatives—shorter formats, dynamic insertions, and mobile-activated CTAs.

• Inventory access: Some premium CTV content is behind paywalls or offers limited ad slots, making it expensive or exclusive.

These are growing pains—but solvable. As the ecosystem matures, tools for programmatic buying, real-time bidding, and centralized measurement will become mainstream.

The Role of Programmatic in Scaling CTV

Programmatic advertising—the automated buying and selling of ad slots—is a game changer for CTV. It enables:

• Real-time ad serving across devices

• Dynamic ad insertion based on viewer behavior

• Flexible budgeting, allowing brands to test, scale, or pause campaigns anytime

With programmatic infrastructure improving in India, CTV is becoming as agile and performance-driven as web and app advertising.

Future Outlook: The Next 2,000 Crore

The momentum is just beginning.

India’s CTV ad market is expected to grow at over 25% CAGR over the next three years, fueled by:

• 5G rollout and faster broadband adoption

• Rising smart TV penetration in Tier 2 and 3 cities

• Affordable connected devices like Fire TV Stick, Mi Box, etc.

• New CTV-first platforms and ad-supported freemium content models

For advertisers, the focus will shift from just presence to CTV-native storytelling—format-specific ads, gamified interactivity, and personalized video creatives.

Conclusion: The Connected Future of Advertising

With over ₹2,000 crore in ad spending, Connected TV is no longer a niche channel—it’s a mainstream medium. In India's rapidly digitizing media landscape, CTV offers a golden bridge between the credibility of television and the intelligence of digital.