TV ad spends pegged to grow 15% to reach Rs 42,388 cr in 2022

Though Digital is expected to overtake TV to become the largest medium in 2022 in India, TV will continue recording positive growth and is estimated to grow by 15% in 2022 vs 2021. According to GroupM futures report, ‘This Year, Next Year’ (TYNY) 2022, TV will garner a 39% share of the total India ad spends of Rs 107,987 crore in 2022. TV ad spends in 2022 are estimated to be Rs 42,388 crore, as compared to Rs 36,929 crore in 2021.

Giving a break-up of the television universe in India, the GroupM TYNY report reveals that the TV homes in the country comprise 210 million homes comprising 892 million TV viewers. There are 101 million cable homes, while pay DTH homes number at 67 million. There are 40 million DD Freedish homes.

Connected TV homes have also been showing a steady rise in the last few years, but are estimated to show a sharp leap in 2022 to reach 17-20 million, from 12 million connected TV homes in 2021.

The report further states that there are 50 million SVOD subscribers in India; 4 in 5 homes that subscribe to SVOD, also consume pay TV.

Addressable TV becomes mainstream

According to the GroupM TYNY report, with Smart TV, TV Advertising will become smart. From smartphones to smart TVs, the Indian market is seeing a massive shift in how households are replacing their living room colour TV box with Internet-enabled Smart TV. Now, it’s time for TV advertising to become smart. A sizeable NCCS A household has completely cut the cord, or swap between on-demand viewing and linear feed, hybrid viewing in the new normal.

By end of 2022, GroupM expects 12% of Indian TV households to have a smart TV, truly connected to broadband and watching on-demand broadcast-quality content either freemium, AVOD or subscription-based.

Marketers and agencies will demand the best combinations of TV and Connected TV plans depending on the targeting. Connected TV advertising plays a big role in ad experience, where 1 or 2 ads are stitched in the steam, unlike Linear that has a longer ad break; which has the risk of losing viewers attention and engagement.

Connected TV is the first step in making even linear TV feeds addressable. There is a huge impetus by distributor economy, middleware and tech companies to make linear TV addressable. With the success of Connected TV, broadcasters will have to embrace the tech that offers household targeting on linear feed too.