Luxury advertisers will leverage connected TVs
2 min read 17 Jan 2023, 06:35 PM ISTConnected TV is very important to reach the difficult, media cluttered affluent audience. For this, brands now need to make creatives for the CTV ecosystem with far more personalisation and interactivity, unlike linear TV
PremiumNEW DELHI: The spread of connected televisions in India is likely to grow two times over the next two years, from the existing 20-22 million connected television homes, which is approximately 10% of TV homes. Urban cities could see the maximum growth till 2025, as per ‘Spotlight23’, report by GroupM-owned marketing firm Wavemaker India.
A connected TV is a device that connects to or is embedded in a television to support video content streaming.
“The growth in cord-cutters has led to its rise and is also being contributed to by an increase in smart TV sales. Their shipments grew by 38% in Q3 2022 alone. There is also a growth of players who are offering faster and cheaper broadband like JioFiber which is aiding the growth," said Vishal Jacob, the company’s chief transformation & digital officer.
Jacob said there could be several segments in the luxury space, like automobiles for instance, which only focuses on premium customer. There are also categories, like in the BFSI segment such as banks and mutual funds, which may want to specifically target such ‘behind the paywall’ customers.
Currently, the audience that consumes connected TV is an affluent, metro skewed, with more premium lifestyle preferences. The programming consumed is remarkably comparable to linear TV consumers, with a high skew towards romance, comedy, action, and live sports.
“CTV (connected TV) is very important to reach the difficult, media cluttered affluent audience. For this, brands now need to make creatives for the CTV ecosystem with far more personalisation and interactivity, unlike linear TV," he added.
While there has been a start, in some ways with some sponsorships emerging and there is a segment of advertisers that are beginning to cater to this type of advertising--like in the case of the Fifa World Cup or the Indian Premier League broadcasted on this medium--several companies are not finding it a viable proposition since it is a far more focused approach. A typical 30-second advertisement strategy will not work for this medium and will require a mature ad ecosystem, he said.
The company said since CTV is expected to become an important element in the integrated video planning, it needs to be considered for all TV plans for brands which target the new customer classification system or the NCCS AB audiences or the top two segments.
“The thing with the connected TV medium is that it has a premium audience with a high disposable income and that’s a segment that many advertisers want to connect with since they are behind a paywall. Anyone who is buying a television today is only picking up a smart TV and with the internet connection and connectivity growing very well in the country, it means more and more personalised content. Once customers get hooked onto personalised content, it’s difficult to go back to an analogue TV," said Jacob.
