Addressing India’s biggest misconceptions about CTV
Anyone following CTV over the last few years could be forgiven for experiencing a bit of whiplash. The way many watch TV or even how we plan and buy TV today is totally unrecognisable from even just a decade ago.
What’s more, the TV industry has evolved so much. With mergers, acquisitions, and new technology constantly changing the state of play, advertisers are finding it challenging to keep up with consumer habits.
Amidst all this transformation and explosive growth, it’s not surprising this has given rise to some common misconceptions about CTV. So let’s debunk some myths.
Misconception #1 – TV is Dead
It is true: traditional TV viewing is declining in India with the rising popularity of streaming services and the adoption of Smart TVs. Like mobile before it, TV today is going through a similar digital evolution. Once a very analog device, the TV has become more personalised, with better interfaces and more connectivity. This is fueling growth. Indian smart TV shipments grew 38% YoY in Q3 2022, with 90% of total TV units sold being Smart TVs.
As technology evolves, so does viewing behaviour. Audiences aren’t watching less TV, they are just watching across more services. You only need to look at the recent IPL viewership to see the major shift in viewing behaviour from linear to streaming.
So it is important to note – TV is here to stay – it is just smarter, more connected and more addressable than ever before.
Misconception #2 – There is no scale in CTV
According to KPMG, TV penetration in India is expected to reach 76% in 2026 – that’s more than 1 billion viewers. What’s more, GroupM expects CTV to grow at a CAGR (Compound Annual Growth Rate) of 47% in the next 5 years to reach $395 million by 2027. These figures highlight just how the experts see CTV scaling in the next few years.
When it comes to Smart TV ownership too, million of Indians already own a Samsung Smart TV and wider Smart TV adoption is rapidly becoming the new normal as more people upgrade their devices
Kohler used this to their advantage recently. In a first of its kind partnership they were able to retarget their website users with high frequency on Samsung Smart TVs delivering over 2m impressions. By redefining how advertisers use CTV, they can target with all the precision of digital or the scale of TV.
Misconception #3 – OTT CTV is the same as OEM CTV
More than anywhere else in the world, advertisers in India are aware of how much more they can do to reach audiences through CTV services delivered over-the-top (OTT), via the internet. However far fewer are aware of how else they can use CTV that is accessed in original-equipment-manufacturer (OEM) environments.
One of these benefits is Automatic Content Recognition (ACR). By using ACR data, it’s possible to identify exposed audiences and their environments, enabling advertisers to see the total TV picture and helping them to adjust campaigns to reach missed audiences and drive incremental reach.
Advertisers also have an opportunity to reach highly engaged audiences before they jump into their OTT app on the big screen. OEM native Smart TV ad solutions are the first things viewers see when they turn on their TV and offer a unique way to reach audiences.
Let’s not forget about the improved ad waste prevention too. Last year, GroupM found that CTV ads were being counted as viewed even when the TV was off, resulting in ad waste to the tune of $1 billion. OEM CTV ensures that apps that stream through OEM operating systems are shut down when the TV is turned off, ensuring more accurate viewability insights.
Misconception #4 – FAST does not equal AVOD
Free Ad-Supported TV, or FAST, is the latest development in India’s rapidly evolving streaming landscape and many are still getting to grips with its capabilities.
FAST is also ad-supported, but this doesn’t make it AVOD. Advertising-based Video On Demand (AVOD) is, as it sounds, on demand, whereas FAST combines the best aspects of the traditional linear TV experience with streaming. It offers scheduled channels for free within a lean back viewing experience as well as the ability to watch more on demand. So, users can sit back and watch hours of scheduled content without spending precious time choosing what to watch. Samsung’s FAST platform, Samsung TV Plus, provides users with non-stop access to premium live sports, news, dramas and more across channels like NDTV, 9x Media and more.
Misconception #5 – Ads are perceived differently on streaming
If ease of access is driving audiences towards connected TV, addressability is now driving advertisers to CTV. There are some people that believe ads on CTV are perceived differently than those on linear channels.
However, research has shown that advertising is generally viewed similarly across platforms.
We commissioned a study last year with VERVE, to better understand viewers’ engagement with advertising across viewing platforms and understand if there was a difference across different platforms.
The results showed that broadly, viewers are just as likely to engage with ads in streaming environments compared to linear.
Consumers appreciate the value exchange in viewing ads with 3 out of 4 (81%) Indian customers willing to watch ads in exchange for free content. Consumers today understand and are open to the value exchange of free content in exchange for ads, as long as those ads are relevant, which the data led approach of CTV advertising delivers.
Challenging preconceived notions
As an industry, we need to challenge and re-evaluate our own preconceptions.
The internet and technology are causing things to shift at unthinkable speeds. With the combination of OEM advantages, CTV’s place in the marketing landscaping is evolving and advertisers can now get a lot more from their CTV investment in terms of insight and performance.
The insights Smart TVs offer advertisers are shining a light on the reality of the CTV landscape and empowering brands to get closer to audiences through these channels.
Author: Vikram Chande, General Manager & Sales Lead – India at Samsung Ads