Growth of streaming resulting in revival of TV: GroupM’s Ashwin Padmanabhan

New Delhi: The digital advertising landscape is undergoing a significant transformation, moving beyond traditional social media and content platforms towards transaction-driven platforms, Ashwin Padmanabhan, Chief Operating Officer for South Asia, GroupM, said in an interview with BestMediaInfo.com. 

Explaining how the shift in spends is taking place on the digital medium, he said, "We've always looked at digital as one block. But today, one can't call digital as one medium anymore. The first wave of digital ad spending, primarily focused on platforms like Facebook and Instagram, is giving way to a new wave driven by transaction data."

This shift, he noted, is evident in the rise of retail media, where advertisers are leveraging purchase data to target consumers on platforms like Amazon, Nykaa, Big Basket, and Flipkart. 

“Even payment apps like Paytm and Google Pay are emerging as advertising channels,” he added.

Growing at a 40% CAGR since 2019, retail media’s share in overall digital media is set to surge exponentially, highlighted GroupM’s “This Year Next Year” report released earlier this month. 

“Last year, it already accounted for 22% of digital advertising,” said the report.

India currently has the third-largest e-commerce shopper base globally and is projected to surpass the US by 2030. The online digital commerce market is expected to reach Rs 1,67,000 crore by 2028, comprising 9-11% of the total retail GMV (Gross Merchandise Value).

It’s not performance vs brand building but a full-funnel approach

With the rise of commerce platforms, many in the industry predict a shift toward performance marketing over brand building. However, advertisers speaking to BestMediaInfo.com have consistently emphasised the need for a balanced approach rather than prioritising one over the other. They believe that, beyond a certain point, neither performance marketing nor brand building can sustain growth on its own.

Padmanabhan contradicted the notion of adex shifting more towards performance over brand building. In fact, he highlighted the opportunity brands have for a complete full-funnel environment. He said that we can now leverage transaction data to advertise on a content-based digital platform and complete the loop on a commerce platform.

He illustrated this concept with an example: "Imagine leveraging Blinkit or Zepto data to advertise on Instagram, targeting specific cohorts of audiences. When users click on that post or reel, it takes them back to the quick commerce platform to complete their transaction."

This approach, Padmanabhan argued, enables marketers to create a "full-funnel, attributable environment" by merging the worlds of commerce and content consumption.” 

TV growth driven by streaming

Padmanabhan highlighted the significant evolution of television, driven by the rise of streaming. 

According to GroupM's recently launched annual TYNY report, 26% of global TV ad spend now goes to streaming, while in India, streaming accounts for 13% of total TV adex.

While India's advertising spend on streaming platforms is currently lower than the global average, Padmanabhan's insights suggested that this segment is poised for significant growth. As internet penetration increases and consumer preferences shift towards on-demand content, broadcasters and advertisers in India are likely to invest more heavily in streaming platforms.

He attributed this evolution to the changing distribution landscape of TV content. "TV first started as terrestrial, then cable came, then satellite, and now you have the internet," he explained. "Distributing broadcast content through the internet is resulting in a revival of TV."

Padmanabhan also highlighted the advantages of internet-based distribution, such as wider reach, targeted delivery to specific geographies, and enhanced measurement capabilities. This, he argued, allows broadcasters to connect with larger audiences and gain deeper insights into their viewing habits.

According to GroupM’s latest TYNY report, the spending on TV stood at Rs 42,859 crore in 2024, which is expected to degrow by 1% to reach Rs 42,431 crore in 2025.

Padmanabhan attributed the challenges faced by linear TV to factors like growth challenges in the FMCG sector and stress on urban middle-class consumption, which are impacting TV ad spends. 

He emphasised the need for the TV industry to adapt and innovate. "Clearly, the TV industry has to invest in new forms of distribution, unifying measurement, and targeting to really find new avenues of growth," he explained.

When asked about the shift in ad spending from linear TV to streaming and the lower revenue potential of digital compared to traditional TV spots, Padmanabhan emphasised that the evolution of television—especially with the rise of Connected TV (CTV) and streaming—will lead to new commercial models and measurement metrics.

He cited Jio's approach to selling IPL advertising on CTV last year, where they used a per 10-second rate instead of the traditional CPM (cost per mille) model.

Padmanabhan also noted that emerging distribution models are creating new opportunities for broadcasters, allowing them to expand their reach and monetise content more innovatively.

The evolution of CTV buying: FCT or CPM?

While retaining the CPM rate at Rs 480 for IPL advertising on CTV, JioStar floated an FCT rate of Rs 8.5 lakh, up 30% from Rs 6.5 lakh charged by JioCinema last year. The hike is attributed to the fast-expanding base of CTV users in India.

Ultimately, Padmanabhan argued, marketers are focused on ROAS (return on ad spend) and the impact on their brand and audience engagement. "I may use a different currency to finally buy a particular spot or impression," he said, "but I'm also measuring ROAS and saying, what is it doing to my brand? What is it doing to the way audiences are engaging with my communication? And how does it lead to my business metrics?"

He further emphasised that it’s a wrong notion to think that buying ads on a CPM basis is cheap. It involves additional costs like paying for targeting, premium environments, audience engagement, and measurement. “So, it’s wrong to say digital advertising is cheaper than TV.”

According to Padmanabhan, selling advertising on an FCT (Free Commercial Time) basis is viable only for streaming/live content such as live sports, concerts, or news streaming. However, it is not suitable for Video on Demand (VOD), as VOD is not streaming in the literal sense and allows viewers greater control over their viewing experience.

Padmanabhan emphasised that this evolution is driven by a more sophisticated approach to measurement and evaluation. "There are metrics for buying and selling media and impressions," he explained, "and there are metrics for measuring the outcome of what that buy is doing for my business. Both of these come into play."

High-impact properties going only-digital

When asked about advertisers’ growing interest in associating with high-impact properties like Shark Tank and MasterChef going fully digital, Padmanabhan highlighted that advertisers value content quality and targeted reach.

“Advertisers are increasingly drawn to high-impact digital-only shows like Shark Tank and MasterChef due to the power of their content and the ability to reach specific audiences,” he said. 

"There are so many clients out there who have chosen to partner with those shows," Padmanabhan observed. "It's because of the power of the content."

He explained that brands want to associate with premium content that enhances their own brand image and resonates with their target audience. "Shark Tank is an example of content that is not a commodity," he stated. "The brands that are present on Shark Tank want to associate with that content because it adds to their own brand's sheen and shine."

Furthermore, Padmanabhan pointed out that digital platforms provide access to specific audience segments that may not be readily available through traditional television. 

"I could distribute Shark Tank on cable and satellite and also on digital," he explained, "but probably, I will see more consumption happen on digital because the kind of audiences that will consume that content are present more on digital or streaming content."

He emphasised that this doesn't necessarily mean viewers are only watching on mobile devices. "They're still watching it on a large-screen TV," Padmanabhan noted.

This trend, he argued, reflects a shift in how advertisers make decisions. While traditional digital advertising often focuses on buying impressions and ensuring brand safety, associating with high-quality content like Shark Tank allows for a more targeted and impactful approach.

"Here, you make a choice to be a part of a content," Padmanabhan explained. "So, that's where the big difference is really in making decisions."

Adex to improve in H2

India’s adex is expected to grow by 7% in 2025, taking the overall ad revenue to Rs 1,64,137 crore, with an incremental Rs 10,730 crore compared to 2024, said GroupM India in its annual This Year Next Year (TYNY) report. In 2024, Indian advertising spend grew 8.8% to reach Rs 1,53,407 crore, said GroupM.

India's advertising market is poised for stronger growth in the second half of 2025, fuelled by increased consumption driven by factors like reduced interest rates and income tax cuts, according to Padmanabhan. 

Sharing insights from the GroupM TYNY Report 2025, the forecast predicts a 5% growth in ad spending for H1 2025, followed by a stronger 9-10% growth in H2 2025.

"We expect this H2 to grow at about 9 or 10%," Padmanabhan stated, citing the anticipated increase in consumption as a key driver. He explained that reduced interest rates and income tax cuts are likely to boost consumer spending, which in turn will fuel higher ad spending.

Digital is driving the adex growth at about 11.5%, followed by cinema at 10% and OOH at 8%. In contrast, TYNY projects a decline of 1% for both linear TV and radio, marking a significant shift in the media landscape.

Despite the decline in linear TV and radio, Padmanabhan highlighted that India's overall ad market growth is outpacing global trends. "India's growth rates on each medium are still better than what we saw at the global level," he observed. He also pointed out that print media continues to grow in India, unlike in many other markets.

The report revealed that digital media now accounts for the lion's share of the Indian ad market, capturing 60% of total ad spends and 95% of incremental spends. "The digital adex is expected to be at about Rs 99,137 crore in 2025 and has taken the lion's share," Padmanabhan stated.

However, he emphasised that "digital is not a monolith" and highlighted the rise of retail media as a key driver of growth within the digital advertising landscape. "Retail media advertising will be about 13.2% of all advertising in India by 2025," he projected.

Shift in content consumption influences purchasing behaviour

As consumer behaviour undergoes rapid transformation, marketers must rethink how they connect with audiences in a fragmented media landscape, said Padmanabhan. 

"The biggest learning for us has been the pace at which consumers are evolving," he noted. The distinction between “media and transaction points is blurring,” with “touchpoints becoming media and media becoming transaction hubs.”

The “fragmentation of consumer attention” poses a significant challenge for marketers. "Earlier, I could advertise on one big TV show and be confident that people were watching. That’s no longer the case," Padmanabhan explained. 

As a result, marketing strategies must evolve. "To connect meaningfully with consumers, we need to understand where they are, how often they engage, and what kind of content resonates with them," he emphasised.

With digital engagement often lasting just seconds, brands must tailor their messaging for instant impact. "If people watch content on their phone for five seconds, my ad needs to make an impression in that time," he pointed out.

Padmanabhan underscored that this shift in content consumption also influences purchasing behaviour, requiring a fundamental change in marketing planning, measurement, and execution.

"The way consumers engage with content and transactions has changed dramatically. The sooner we recognise this, the sooner we can adapt our marketing strategies to stay relevant," he concluded.