One of India’s leading media agency, GroupM, has unveiled the second edition of its report-‘The Changing Landscape of India Television‘.
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.
As per GroupM, India is one of the world’s most important TV markets with the second largest number of TV households after China.
In the report, the agency highlighted that while India had 210 million households in 20202 as per BARC, recent data reported by Ampere shows that the total TV households have gone up to 217 million, growing at a 1.1% CAGR over 2020-2023.
“The growth in TV households in India is largely attributable to increased subscriptions to Free TV Services,” the report mentioned.
Furthermore, GroupM’s report also highlighted that even though new, the addressable advertising market has shown huge potential in India, via Connected TV.
“GroupM Nexus reported 9.8% of the total TV advertising revenue in 2023 went towards Addressable TV services, representing INR 45Bn in ad revenue,” it stated.
In the second edition of ‘The Changing Landscape of Indian Television’, GroupM also mentioned that 52% of Indian households are connected and now have internet access up from 36% in 2020. The same is projected to reach 59% by 2026.
According to Ampere’s proprietary consumer survey 65% of Indian internet users, approximately 486 million viewers, watch ad-supported video content.
That being said, India is now the third largest SVoD market by subscription which reaches 88.3 million households, as per Ampere Market Operators forecast.
“In most Western markets, SVoD services such as Netflix and Disney+ have led the transition from
ad-free SVoD to hybrid and ad-supported content. However, in India, most VoD services started with multiple tiers, including a free ad-funded tier, a hybrid ad-supported tier, and an ad-free subscription tier. The vast majority of VoD consumers use the free ad-supported tier,” the report pointed out.
Attributing GroupM Nexus Advanced TV 2023, the report also mentioned that there has been a whopping 117% growth in the number of unique Connected TV devices from 2022 to 2023 and the same is expected to reach more than 45 million households by the end of 2024.
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 & Bihar over 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
Speaking at the launch of the second edition of GroupM’s ‘The Changing Landscape of India Television’ report, 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 characterized by insight and fascination for advertiser and broadcaster alike.”
To this, Atique Kazi, President– Data, Performance & Digital Products, GroupM India, added-
“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.”
Click here to view the full report.
