Will programmatic CTV media buying overtake linear TV? Exploring future scope

In recent years, programmatic CTV media buying in India has experienced a rapid surge, driven by key trends and statistics. The increasing adoption of affordable Smart TVs and high-speed Internet has led to a notable shift in consumer viewing habits towards digital streaming and on-demand content.

According to the EY-FICCI 2022 report, India’s CTV base is predicted to quadruple by 2025, showcasing significant growth potential in the Indian market. The India smart TV industry’s market value was estimated at $9.88 billion in 2022, with a projected CAGR of 16.7% from 2023 to 2030, indicating the rapid expansion of connected TV devices in Indian households.

The success of major events like the Indian Premier League (IPL) on streaming platforms, like JioCinema, further demonstrates the growing appetite of Indian audiences for CTV.

Advertisers in India are quickly adapting their strategies to harness the potential of programmatic CTV. By utilising advanced technologies and data-driven approaches, brands can enhance ad targeting, personalisation, and measurability, making their campaigns more effective and engaging.

Amitt Sharma, CEO, VDO.AI, pointed out that the rising popularity of streaming services and the increasing adoption of connected TV devices have fueled the growth of programmatic CTV media buying. He said, “In recent years, the rise of streaming services and the increasing number of connected TV devices have contributed to the popularity of programmatic CTV media buying.”

According to industry statistics, programmatic CTV ad spending is projected to reach $25.9 billion by 2023, reflecting its significant growth and potential in the advertising landscape.

Sharma further said, “These figures demonstrate the growing importance of programmatic CTV as a powerful advertising channel. The targeting capabilities and data-driven approach of programmatic CTV have further attracted advertisers towards this medium. With the ability to reach precise audiences and gain valuable insights, advertisers find programmatic CTV a compelling option to connect with their target customers effectively.”

Santosh Ghosh, Head of Digital Strategy, Investment & Advisory, Tencom Ventures, highlighted the trends and statistics supporting programmatic CTV’s growth. He said, “One notable trend is the decline in the number of paid Cable and Satellite (C&S) households.”

According to reports, the number of paid C&S homes dropped from 153 million in 2018 to just 130 million in 2020. In contrast, the number of connected TV households reached 25 million in 2022 and is projected to increase to 40 million homes by 2025.

Additionally, Ghosh noted, the growth of the Indian smart TV market is another key indicator. “In 2022, the market was valued at $9.88 billion, with an expected compound annual growth rate (CAGR) of 16.7% from 2023 to 2030. As consumers adopt advanced smart TVs, it is reasonable to assume that traditional cable and DTH connections may decrease in favour of internet-based streaming options.”

Tencom Ventures’ Santosh Ghosh further added, “In light of these trends, the future of linear TV appears uncertain. Analogous to the decline seen in the print industry with the rise of digital media, linear TV could face a similar fate. The growing Internet penetration and the rapid spread of smart gadgets across even remote areas in India are likely to accelerate the decline of linear TV at a faster pace. While not a fortune teller, the evidence suggests that linear TV’s traditional model may struggle to compete with the convenience and personalisation offered by programmatic CTV media buying in the evolving media landscape.”

Elaborating on how programmatic CTV is capturing a larger share of the Indian media landscape, Nikhil Kumar, Vice President, Mediasmart, said, “Industry estimates peg spending on programmatic at upwards of $500 million this year, having already more than doubled since pre-Covid years. The recently concluded IPL tournament on JioCinema’s OTT app was a testament to the growing reach of digital screens in India and the appetite for Indian audiences on CTV. In comparison to linear TV, CTV’s audience is smaller at around 40-45 million households, but it continues to grow at an accelerating pace. And while there may be stark differences between both the mediums, the rise of affordable Smart TVs, high Internet penetration, lower cost of data plans, and wide variety of on-demand content continue to make CTV a larger phenomenon. Industry reports like the EY-FICCI 2022 report predicts India’s CTV base will quadruple by 2025. So, we are likely to witness a greater number of cord cutters and cord nevers, who are consuming content on their CTVs.”