The connected TV market is currently growing at a considerable pace and there seems to be a promising future.
By Arpit Jain
Technology has dominated every aspect of our lives since the digital turmoil was at the forefront. From when we wake up and work all day, to when we hit the bed, whether at work or in joy. Every aspect of our lives is digital. One such prominent example is when you say goodbye to a traditional TV set for smart TVs and are currently using Connected TV.
Connected TV: New Age Concept
Consumers are gradually moving towards connected TV (CTV). Technically defined, CTV is a new generation of TV sets that integrates the capabilities of the Internet and Web 2.0. Simply put, the connected TV can be supported by any device designed to be multimedia compatible. Once connected to the internet, it includes smart TVs, set-top boxes, TV sticks, streaming devices such as Chromecast, and game consoles such as Xbox and PlayStation. CTV allows viewers to access video streaming services such as Netflix and YouTube. You can also search the web for movies, photos, and other digital content.
Connected TV and OTT and PTV
Connected TV supports addressable TV advertising features. They thrive in technology and represent the technology-based foundation of programmatic TV (PVT) support. TVs connected to OTT, on the other hand, consume the same amount of Internet TV, but do not require an active cable subscription or TV streaming device. They help you reach the connected TV advertising market using the OTT app in the app store. However, users need an internet connection to use the service.
Programmatic TV is a concept that leverages the benefits of algorithmic ad purchases to broadcast Connected TV ads to a targeted audience. This includes technology-based automation of planning, purchasing, measuring, and optimizing traditional TV shows. Algorithmic purchases are especially tailored to the brand and are made possible by programmatic software that exists as a programmatic advertising platform.
PTV is an integral part of personalizing your advertising strategy. This concept allows you to deliver ads to virtually any device connected to the Internet. Brands can display different ads to different target groups or households, which is useful for targeted and focused ads. As a result, users will see different ads while watching the same show, depending on their interests, age, income level, and so on.
Performance metrics for tracking Connected TV
CTV is a digital programmatic ad, but it constitutes a TV commercial as an ad unit rather than a banner ad. Because it uses digital measurements, accuracy and accuracy are guaranteed. This attribute is an advantage over linear TVs in CTVs.
Connected TV ads are bought and sold in an invitation-only private marketplace. This will reduce the number of participants and increase the winning percentage. Advertisers can reach premium inventory for such addressable TV programmatic auctions.
Clicks are not a viable option when considering measuring the effectiveness of Connected TV advertising campaigns. Instead, you should consider descriptive performance indicators such as cost per watch completed, rate of video completion, and cost per mile. Connected TV measurements provide insights that allow advertisers to place ads and see how many people have seen them, along with accurate numbers. It also provides advertisers with a detailed analysis of completion rates, including details such as the number of people who saw the ad from start to finish and the number of people who dropped out.
However, today’s marketers want a 360-degree analysis and measurement of their customer journey so they can measure the impact of their CTV campaigns and change their strategies accordingly. This is where a new era of tools for CTV measurement and campaign management comes in! These solutions help marketers access information about the success of their advertising campaigns. Understand what your viewers do after seeing your ad and the performance of your marketing efforts across the channel. The idea is to find a platform that helps provide accountability, efficiency, and reliable results for CTV measurements.
Current and future outlook for the Indian connected TV market
The Connected TV segment is one of India’s exponentially growing markets. According to Modor Intelligence, India’s smart TV and OTT markets are projected to grow at a CAGR of 5% from 2021 to 2026. Affordable smart TVs, increased data penetration, and global content availability make for internet-enabled TV sets. These reasons will play a major role in co-replacement of traditional linear variants in the future. Given India’s sincere adoption of smart TVs, Connected TV is expected to become a game-changing trend not only for viewers but also for the industry.
Exponential growth in connected TV advertising and OTT markets
India’s video OTT market is valued at $ 1.5 billion in 2021 and is expected to reach $ 4 billion by 2025 and $ 12.5 billion by 2030, according to Statista’s report. In addition, the EY project with smart TVs will grow to 14 million by 2023 and 40 million by 2025. This growth is driven by the availability of low-cost smart TVs, the surge in affordability, and the increase in wireless and wired broadband connections. These statistics show the fact that the future of entertainment is certainly OTT and connected TV. Therefore, the growing preference for OTT platforms has a positive impact on the overall growth of the smart TV market in India.
Today’s consumers are tech-savvy and are increasingly fond of online content. They bring high disposable income and demand useful, targeted and high-end communication. Advertisers who want to open up a growing connected TV market and provide relevance as well as a compelling experience for their target new era of consumers rely on connected TV advertising.
Summary: Connected TV paves the way for a promising future for the ad tech industry
2021 was certainly a period of change. There has been a major change in the way consumers connect digitally, and the number of connected screens is skyrocketing. Given that New Age consumers spend a lot of time on connected TV as well as OTT content, we will continue to do so. In this domain, advertising revenue will eventually spike.
The connected TV market is currently growing at a considerable pace and there seems to be a promising future. In this way, it is attracting the attention and interest of advertisers who want to harness the power of digital advertising to reach their target customers effectively and innovatively. Therefore, as the connected TV market is booming, CTV advertising will also flourish. This trend will further transform the ad tech industry in the future, and therefore the future of this sector seems to be progressive.
The author is the founder and CEO of Greedy Game. The views expressed are personal.
Also read: How Indian brands fuel influencer marketing tools
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