The Connected TV market is currently growing at a significant pace and appears to have a promising future
By Arpit Jain
Since digital disruption has come to the fore, technology has ruled every aspect of our lives. From the moment we wake up and work all day, to the moment we get out of bed, be it work or pleasure; every facet of our lives has gone digital. One such prominent example is when we say goodbye to the traditional TV sets for the smart TVs, and we are now embracing connected TVs!
Connected TV: the new age concept
Consumers are gradually moving towards Connected TV (CTV). Technically defined, CTV is the integration of internet and web 2.0 functions in the new generation of TV sets. In simpler terms, connected televisions can be supported by any device designed to be multimedia compatible. They connect to the internet and include smart TVs, set-top boxes, TV sticks, streaming devices such as Chromecast and game consoles such as Xbox, PlayStation, etc. With CTV, viewers can access video streaming services such as Netflix, YouTube, etc. as well as search for movies, photos and other digital content on the Internet.
Connected TV vs OTT and PTV
Connected TVs support addressable TV advertising capabilities. They thrive on technology and represent the technology-based foundation of Programmatic TV (PVT) support. In contrast, the TVs connected to OTT are the same as Internet TV consumption, but do not require an active cable subscription or TV streaming devices. They help reach the connected TV advertising market using the OTT apps found in the app stores. However, the users would need an internet connection to use their services.
Programmatic TV is a concept that broadcasts Connected TV ads to the target audience, leveraging the benefits of algorithmic ad buying. It includes technology-based automation of scheduling, buying, measuring and optimizing traditional TV shows. Algorithmic procurement is powered by programmatic software that is specifically tailored for brands and exists as programmatic advertising platforms.
PTV is an essential element for the individualization of advertising strategies. With this concept, ads can be displayed on virtually any device with an internet connection. It helps with targeted and targeted advertising as brands can show different ads to different audiences or households. As a result, the users will watch different ads while watching the same show depending on their interests, age, income level, etc.
Performance stats to track Connected TV
CTV is digital programmatic advertising, but contains a TV commercial as an ad unit instead of a banner ad. It uses digital measurements and therefore comes with a promise of precision and accuracy. This feature gives CTVs an edge over linear TVs.
Connected TV ads are bought and sold on private invitation-only marketplaces. This leads to fewer participants and higher win rates. The advertisers can achieve premium inventory in case of such addressable programmatic TV auctions.
When we consider measuring the effectiveness of the Connected TV ad campaign, the number of clicks is not a viable option. Instead, descriptive performance metrics such as cost per view completed, video completion percentage, and cost per mile should be considered. Measuring Connected TV provides insights that allow advertisers to run ads and have a number on how many people have seen the ads along with the exact figure. It also gives advertisers an in-depth analysis of completion rates, detailing how many people saw the ad from start to finish, how many people dropped out, etc.
Today, however, marketers demand 360-degree analysis and measurement of the customer journey so they can measure the impact of CTV campaigns and adjust their strategies accordingly. This is where new-age CTV measurement and campaign management tools come in! These solutions help marketers access information about the success of the ad campaign; the action viewers took after viewing the ads, and they also understand the performance of their marketing efforts across channels. The idea is to find a platform that can help deliver responsible, efficient and reliable results for CTV measurements.
The Present and Future Landscape of the Connected TV Market in India
The Connected TV segment is one of the exponentially growing markets in India. According to Modor Intelligence, the Indian smart TV and OTT market is expected to grow at a CAGR of 5% from 2021 to 2026. The affordability of smart TVs, increasing data penetration and availability of global content are the main factors driving the growth of the televisions with internet access. Together, these reasons will play a major role in replacing the traditional linear variants in the near future. As India has wholeheartedly adopted Smart TV, Connected TV is expected to be the next groundbreaking trend for both the industry and the viewers!
The Exponential Growth of Connected TV Advertising and OTT Market
As reported by Statista, the Indian video OTT market was valued at $1.5 billion in 2021 and is expected to grow significantly to reach $4 billion by 2025 and $12.5 billion by 2030. In addition, EY- projects connecting smart television sets are expected to grow to 14 million by 2023 and 40 million by 2025. This growth will be driven by the proliferation of wireless and wired broadband connections, along with the peak in easy availability and affordability of low-cost smart television sets. These statistics indicate that the future of entertainment is indeed OTT and Connected TVs. Therefore, it would be appropriate to say that the growing preference for OTT platforms is positively impacting the overall growth of the smart TV market in India.
The modern consumer is tech-savvy and increasingly prefers online content. They have a high disposable income and demand useful, targeted and high-quality communication. Advertisers in an effort to tap into the growing Connected TV market and deliver relevant and engaging experiences to the target audience of new age consumers, so rely on Connected TV advertising!
In summary: Connected TV is paving the way for a promising future for the adtech industry
2021 was indeed a transformative period. There has been a significant shift in the way consumers connect digitally and there has been an increase in the number of connected displays. As new age consumers spend more time on Connected TVs and OTT content, and will continue to do so in the foreseeable future; ad revenue will eventually and as a result increase in this domain.
The Connected TV market is currently growing at a brisk pace and appears to have a promising future. Thus, it captures the attention and interest of advertisers as they want to harness the power of digital advertising and reach their target customers effectively yet innovatively. Thus, with the rise of the Connected TV market, CTV advertising will also flourish. This trend will further transform the adtech industry in the near future and hence the future of the sector looks forward-looking.
The author is founder and CEO of GreedyGame. Opinions expressed are personal.
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This post How Connected TV is going to cause ripples in the adtech industry
was original published at “https://www.financialexpress.com/brandwagon/how-connected-tv-is-going-to-create-ripples-in-the-adtech-industry/2465078/”