Long-form Videos To Contribute 13% TV Ad Revenue By 2025: GroupM

GroupM has introduced the second edition of ‘The Changing Landscape of Indian Television’, focusing on the status and potential of Addressable TV in India. Conducted by Ampere Analysis and gathering insights from 4000 respondents, the report explores the significant shift from linear TV to CTV in the Indian TV industry. It sheds light on the resulting changes in audience media consumption patterns and examines how advertisers and broadcasters can capitalise on these shifts to optimise ad spend and enhance audience engagement.

The findings of the second edition indicate that addressable advertising offers unprecedented opportunities for refining audience targeting. It is projected to surpass 13 per cent of total TV ad revenues (including linear TV and digital extensions) in India by 2025, signalling a significant transformation in the advertising landscape. The report underscores the increasing importance of a targeted and personalised approach in the Indian marketing mix.

Prasanth Kumar, CEO, GroupM South Asia said, “Embracing the transformative tide of technology, our evolving TV landscape in India, from terrestrial to Connected TV, embodies a journey of perpetual adaptation. Serving as the adhesive in Indian households, TV not only unites families but now, with newfound digital capabilities, empowers brands to engage meaningfully. In this age of attention economy, where convenience meets engagement, our commitment is to unlock the power of TV advertising through Advanced TV solutions, fostering a future characterised by insight and fascination for advertiser and broadcaster alike."

Atique Kazi, President – Data, Performance & Digital Products, GroupM India said, “As we navigate the dynamic landscape of television advertising in India, the forecast of a 10 per cent CAGR growth over the next five years signals a remarkable evolution. The surge in Connected TV advertising, anticipated at an impressive 31 per cent CAGR, underscores the pivotal role it plays in reshaping our television ecosystem. Recognising the importance of engaging with elusive cord-cutters and cord-nevers, this report delves into the transformative factors and societal influences driving this evolution. Our aim is twofold: to dissect the growth drivers and to provide a profound understanding of addressable TV viewers and their evolving preferences, illuminating the path forward in this exciting era of television.”

Key insights for brands and advertisers from this report are as follows:

• Long-form streaming video contributed to 9.8 per cent of total TV ad revenue in 2023, and this is anticipated to exceed 13 per cent by 2025. Most of this growth is expected to come from free, ad-funded services, and subscription hybrid products.
• Addressable TV homes are projected to surpass 45 million by the end of 2024, covering 21 per cent of Indian TV homes. This marks a 32 per cent growth over the figures from 2023.
• There has been a 117 per cent growth in the delivery of paid media to Connected TV (CTV) devices from 2022 to 2023.
• CTV growth is prominently observed in HSM markets, with a 4X increase in impressions from states like Maharashtra, Haryana, UP, MP, Jharkhand, Uttarakhand, Chhattisgarh, & Bihar over the last 12 months. Karnataka leads growth in the South with a 7X increase.
• According to the survey, two-thirds of respondents find ads on Over-the-Top (OTT) services more appealing and relevant compared to their linear TV counterparts. Additionally, 41 per cent express a willingness to view ads on OTT services to reduce subscription costs.
• Two-thirds of respondents engage in co-viewing while watching addressable TV services, mirroring traditional TV viewing patterns.
• While 11 per cent of respondents identify as cord-cutters, 54 per cent of these cord-cutters continue to watch addressable TV services.

Furthermore, almost 50 per cent of the participants owned a smart TV, and 25 per cent of those without one indicated their intention to make a purchase within the next year. In the NCCS A&B grades, 67 per cent of respondents had recently viewed addressable TV. Among those who watched addressable TV, the average household incomes were reported to be nine per cent higher compared to respondents who watched Free TV.