What advertisers paying premium for news on CTV means for broadcasters

New Delhi: If the digital world is a crowded soup dominated by big tech, then Connected TV (CTV) is the new spoon for news channels, offering a fresh and essential way to serve up content.

India’s digital advertising market is currently worth Rs 397 billion. For several top news broadcasters, CTV makes up 20-25% of the total digital revenue. 

It should be no surprise that CTV could be the next source of revenue for news channels in India as they continue to charge a premium for CTV advertising, according to industry experts. 

Delphin Varghese, Co-founder & Chief Revenue Officer of AdCounty Media, “News channels usually charge more for their services on CTV than cable or broadcast TV. In some instances, the premium may run at a range of 20-30%, depending on the specificity of a platform, audience demographics, and ad placement.”

The premiums being charged indicate advertisers’ increasing interest in CTV, said Russhabh R Thakkar, Founder and CEO at Frodoh. 

“Advertiser interest in CTV news has grown alongside this trend, thanks to its ability to combine TV’s immersive storytelling with digital’s targeting precision and analytics. Moreover, regional OTT platforms emerging on CTV have become pivotal in connecting advertisers to audiences outside metro cities. These platforms enable hyper-localized advertising, unlocking opportunities to tap into regional and vernacular audiences that were previously harder to engage on traditional platforms,” Thakkar said.

Mandeep Malhotra, Founder and CEO of Srishti Media, added, “CTV advertising rates can be more premium than traditional linear TV due to the sophisticated targeting capabilities and the higher level of engagement with viewers. While exact premiums vary depending on the specific news channel and audience reach, news channels that offer premium, high-quality content typically charge a higher rate for CTV placements. 

The premium reflects the ability to serve highly targeted ads and the increased effectiveness of those ads in reaching a specific demographic or psychographic group, which leads to a higher ROI for advertisers. Additionally, advertisers are willing to pay more for the contextual relevance of news content, especially when the audience is actively engaged with current events and media consumption is often less interrupted.”

Moving forward, CTV has often been viewed as a space for targeting premium audiences with higher spending power only. Busting this myth that CTV is a space only for the premium audience, Amit Sinha, Chief Strategy Officer at India TV, said, “Brands from automobile, electronics and gadgets, retail, FMCG, and e-commerce, everyone is interested in CTV. The audience targeting capabilities have attracted premium, mid-tier, and mass-market brands. Connected TV (CTV) has now reached approximately 48 million Indian households, offering advertisers a significant boost in viewer engagement.”

When asked if India TV has developed any specific advertising solutions tailored for CTV, Sinha said, “As a traditional linear broadcaster, our advertising format was initially very specific. We sold inventory on a spot-based model, with ads running at predetermined times and schedules. However, with advancements in technology, we’ve transformed the way we offer advertising solutions. 

Now, we provide diverse options for selling ad inventory, including impression-based models, spot-based placements, targeted advertising, and ad exchange deals. These advancements have made advertising more efficient, refined, and tailored to meet specific audience needs, offering greater flexibility to advertisers.”

The shift from traditional TV news to Connected TV (CTV) highlights changing viewer habits driven by digital convenience. People now favour on-demand, personalised content and a flexible viewing experience, often without ads or with interactive options. This transformation is prompting broadcasters to adopt digital-first strategies to maintain audience engagement.

Commenting on how India TV has changed its offerings to match the changing consumer behaviour, Sinha said, “To adapt to these changes, India TV has introduced innovative content offerings. For example, India TV Speed News provides quick updates 24/7, catering to viewers who want all the important news in less time. Similarly, Aap Ki Adalat, a favourite among audiences, is now available on-demand. To meet the growing interest in health and wellness, India TV Yoga shares lifestyle tips around the clock. These efforts show how India TV is evolving to match changing viewer preferences while staying ahead in the digital era.”

Thakkar of Frodoh said, “Events like state elections in Haryana, Jammu & Kashmir, and the ongoing Maharashtra elections provide fertile ground for broadcasters to attract advertisers seeking high-impact opportunities. Key moments such as exit polls, counting, and government formation are particularly valuable for brands looking to associate with real-time, high-attention content.

To capitalise on this, news broadcasters can develop exclusive packages for CTV, such as special L bands or fixed commercial time (FCT) slots at premium rates during these events. Additionally, channels can collaborate with FAST providers to raise awareness about their availability on these platforms, offering preferential rates to OEMs to drive adoption. This dual strategy can position news broadcasters to grow CTV revenue while gradually increasing their pricing to approach linear TV levels.”

News channels can offer a variety of content to their audience but what strategies can news channels adopt to attract more advertisers to CTV? How can they enhance its appeal?

Malhotra of Srishti Media said, “To attract more advertisers to CTV, news channels should focus on two key strategies: content quality and data-driven innovation. Firstly, news channels should continue to produce high-quality, trusted journalism that resonates with audiences while expanding their digital offerings to ensure they stay competitive. Secondly, leveraging advanced data analytics to offer highly targeted ad solutions will be essential. Advertisers are looking for precision and relevance, so news channels that provide these capabilities will have a competitive edge.”

“Embracing new ad formats such as interactive ads, shoppable TV, or short-form video content could help attract a broader range of advertisers, especially brands in sectors like e-commerce and technology. Offering advertisers seamless cross-platform campaigns, and integrating TV with digital content across social media or mobile apps, will also enhance the overall appeal of CTV news advertising. Finally, educating advertisers on the value of CTV’s ROI, in terms of both brand exposure and consumer action, will be crucial to solidifying its place in the media mix,” Malhotra added.