Rs 4,500 crore of total TV ad revenue went to addressable advertising services in 2023: GroupM

9.8% of the total TV advertising revenue in 2023 went towards total addressable advertising services, representing Rs 45 billion in ad revenue, as per the GroupM’s second edition of “The Changing Landscape of Indian Television” report on the state and potential of Addressable TV in India.

The report indicates that addressable advertising is set to surpass 13% of total TV (linear TV and digital extensions of TV) ad revenues in India by 2025. 

GroupM Nexus expects that by 2026, 16% of TV ad spend will be devoted to Addressable TV products and services on Connected TVs.

GroupM said that it reflects on the growing importance of targeted and personalised approaches in the Indian marketing mix. 

Key takeaways for brands and advertisers from this report include: 

• 9.8% of total TV ad revenue was from long-form streaming video in 2023, and this is expected to surpass 13% by 2025 with free, ad-funded services and subscription hybrid products expected to generate most of this growth
• Addressable TV homes to surpass 45 Mn by end of 2024, covering 21% of Indian TV Homes; a growth of 32% over 2023
• 117% growth in delivery of paid media to CTV devices from 2022-2023
• CTV growth emerges from HSM markets, witnessing 4X growth in impressions from Maharashtra, Haryana, UP, MP, Jharkhand, Uttarakhand, Chhattisgarh and Bihar over the last 12 months. Karnataka leads growth in South with 7X growth
• The survey stated that two-thirds of the respondents expressed that they found ads on OTT services more appealing and relevant than their linear TV counterparts, and 41% declared willingness to view ads on OTT Service to reduce subscription costs
• Two-thirds of the respondents co-view while watching addressable TV services, making it comparable to traditional TV viewing patterns
• 11% of respondents are of cord-cutters but 54% of those cord-cutters continue to watch addressable TV services
• India is the third largest SVOD market by subscription. SVoD services have grown rapidly in India and assuming for households with multiple SVoDs reach 88.3Mn households according to Ampere Market Operators forecast

Addressable TV covers the TV services capable of simultaneously serving different advertising to distinct sub-groups within an audience base, allowing advertisers to target specific audiences. TV services considered addressable in GroupM’s report includes AVoD and FAST services, Connected TV-based streaming platforms and Hybrid subscription/ ad-funded products. 

GroupM noted that Linear Addressable TV products do exist among a small selection of Pay TV operators in mature TV markets but is currently expected to be minimal in India.

The report survey by Ampere Analysis that graphed responses from 4000 respondents delves into the significant transition from linear TV to CTV within the Indian TV industry, highlighting the subsequent transformation in audience media consumption patterns. 

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 and Digital Products – GroupM India, said, “As we navigate the dynamic landscape of television advertising in India, the forecast of a 10% CAGR growth over the next five years signals a remarkable evolution. The surge in Connected TV advertising, anticipated at an impressive 31% CAGR, underscores the pivotal role it plays in reshaping our television ecosystem. Recognizing 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.”

The report further mentioned that, nearly half of the respondents possessed a smart TV, and a quarter of those who did not possess one expressed intent to buy one within a year. Among respondents in the NCCS A&B grades, 67% recently watched addressable TV and respondents watching addressable TV reported average household incomes 9% greater than respondents watching Free TV. 

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