Advertisement spending on connected TV seen at $500 mn by 2027
Advertisement spending on connected TV (CTV) is projected to touch $500 million by 2027 as the consumption of streaming content increases due to the affordability of internet-enabled TV sets and wired broadband subscriptions, a senior industry executive has said. «Ad spend on CTV is likely to grow at a rapid pace to touch $500 million by 2027,» said Siddharth Dabhade, South Asia managing director of global marketing intelligence firm MiQ.
Previously, GroupM had projected that the CTV ad spend would be $395 million by 2027.
However, Dabhade believes ad spending will shift significantly towards CTV once it reaches the 200-million viewer threshold.
According to market estimates, CTV households in India stand between 25 million and 35 million, translating to 80-110 million viewers. By 2027, it is expected to double to 60-70 million households with 200-250 million viewers.
«The affordability of internet-enabled TVs and broadband will drive growth in the CTV universe,» he said, adding the top six metros account for a sizable portion of the CTV base, with the base expanding rapidly in tier-1 and -2 cities.
Dabhade added the rapid increase in rural affordability and infrastructure development will determine CTV's future growth. «The demand for streaming content on TV is increasing even as content consumption on mobile devices is growing,» he noted.
Meanwhile, a survey by MiQ revealed that 56% of Indian consumers use a second screen while streaming videos or TV content, and 72% prioritise pricing over content.
