Mumbai: As per an Ormax report, streaming has become India's preferred choice for content consumption, boasting over 480 million OTT users. Its convenience and accessibility, allowing users to watch content anytime, anywhere, and on any device, have fueled this trend. The surge in smartphones, 4G feature phones, and widespread high-speed internet availability in urban and rural areas contribute to this shift, creating a new frontier for advertisers.
Advertisers are capitalizing on streaming platforms' interactive nature, crafting immersive and engaging ad experiences. Interactive ads seamlessly blend with content, enhancing the viewing experience and resonating better with audiences. Streaming also offers a wealth of data, enabling precise targeting and tailored campaigns, ensuring maximum impact and ROI. Brands are leveraging innovative placements and exclusive content to effectively engage audiences.
According to a Magnite report, 80 per cent of Indian streaming audiences prefer ad-supported content over paying for an ad-free platform. This preference opens up opportunities for advertisers to drive brand awareness, engagement, and conversion. The report indicates that almost half of streaming users actively search for products featured in ads, and one in three makes a purchase based on these ads, underscoring the significant impact of streaming platform advertising on consumer behavior.
Furthermore, 59 per cent of Indian streamers spend an average of 8 hours per week streaming content on the big screen at home. CTV advertising is gaining popularity among BFSI, e-commerce, automobile, and OTT categories, with an expected spending of $395 million by 2027, reflecting a remarkable 47 per cent CAGR growth.
Despite the popularity of UGC platforms for on-the-go content consumption, CTV's premium and engaging advertising environment sets it apart. Advertisers have more control over ad placement and brand association on CTV, making it a more effective advertising channel. A Kantar report highlights that 22 per cent of consumers are more likely to recall brands advertised on CTV than on a leading UGC platform.
Over the past five years, there has been a 25 per cent decline in Pay TV subscribers, with over 200 million households unreachable by Pay TV, according to an EY-FICCI report. Advertisers are increasingly turning to digital routes, and the decline in Pay DTH subscribers further supports the preference for CTV. Linear TV has consistently declined, with a 6.2 per cent fall in subscription revenue in 2021 and the loss of 6 million Pay TV households.
As streaming, especially CTV, continues to rise, advertisers are adapting strategies for enhanced ad experiences, focusing on creative storytelling and dynamic digital touchpoints. Technological advancements, evolving consumer preferences, and growing advertiser interest are propelling streaming's strength. The first half of 2024 promises more immersive, powerful, and impactful ads, delighting both advertisers and consumers.
The upcoming TATA IPL is expected to define the next phase of this evolution, with JioCinema unlocking cutting-edge ad innovations on CTV for an estimated 600-650 million viewers streaming the matches across devices for free. Advertisers have a golden opportunity to connect with their desired audiences among cricket fans in this ever-expanding streaming landscape.
