
The global Connected TV (CTV) market is expanding. Connected TV growth rates and viewership patterns vary across regions, including an impressive 47% year-on-year increase in India, reaching 70 million viewers. This is leading investors to look at the CTV market for opportunities to invest.
The following insights offer retail investors critical information, aiding in informed decision-making for investments in the media, entertainment, or technology sectors.
#What is Connected TV (CTV)?
CTV refers to any TV that can connect to the internet and access content beyond what is available via the normal offering of cable providers. This includes Smart TVs, devices like Roku, Amazon Fire TV Sticks, or Apple TV, gaming consoles like Xbox and PlayStation, and internet-enabled Blu-ray/DVD players. CTV offers viewers access to streaming content and allows internet-based advertising.
Following on from the streaming wars that saw Netflix battle with Amazon Prime, Disney Plus and many more entrants vying for viewer eyeballs, CTV has generated intense competition among tech giants and manufacturers to launch smart TVs and devices that blend hardware with revenue-driving software.
Companies like Sony (NYSE: SONY), Microsoft (NASDAQ: MSFT), and Roku (NASDAQ: ROKU) are key players in the Connected TV (CTV) hardware market, while open-source operating systems like Coolita are gaining traction in India, used by brands such as Panasonic and Thomson.
#Evolving Viewer Preferences and the Rise of Connected TV
With the shift from traditional TV to CTV, investors need to note the changing habits, preferences, and expectations of viewers, especially regarding content consumption and advertising.
The rise of Connected TV (CTV) brings personalized, interactive, and on-demand entertainment, enabling businesses like QYOU Media to establish a strong presence in the Indian entertainment sector.
Advertisers are adapting to this new landscape, crafting strategies that effectively reach and engage audiences on CTV platforms, which differ significantly from traditional linear TV. That’s because TV advertising has long been a hugely lucrative business tool, and now there is increasing scope for money-making and branding opportunities for all business sizes. TV ads are becoming more interactive and tailored, boosting conversion rates. With Connected TV (CTV), there are even more options to personalize these ads.
#The Connected TV Advertising Evolution
For instance, artificial Intelligence (AI) is revolutionizing CTV, with recommendation engines tailoring content and Automatic Content Recognition (ACR) identifying what's being watched. This is being further extended to TV advertising with precise targeting, real-time insights, programmatic ad-buying, content optimization and more.
The impact of television advertising on society and the continuously evolving branding opportunities it brings are remarkable. This data-driven TV era is reshaping viewing habits and is expected to dominate TV viewership and ad revenue growth.
Convenience attracts viewers to Connected TV (CTV), while advertisers are drawn by its addressability. Viewers often maintain multiple connections for flexibility and to accommodate different family members' viewing preferences. According to a Finecast and Kantar study, despite having various options, 65% of survey respondents prefer Connected TV, including Smart TVs and internet-enabled devices, over the 35% who favor linear TV (Cable + DTH).
#The Indian Market: Consumer Behavior and Brand Strategy
Meanwhile, consumer behavior and market trends in India point towards a growing preference for the personalized, on-demand content offered by Connected TV.
Indeed, consumers believe CTV ads strongly influence their buying decisions, with higher viewership than linear TV ads. Consumers prefer CTV because of its flexibility to suit their needs, a broader range of content options, and ease of searching for content. They value the flexibility to watch content at their convenience, the uninterrupted nature of content, and the presence of fewer ads.
Why Connected TV Outshines Linear | CTV Audience | Linear TV Audience |
---|---|---|
Time-Flexible Viewing | 78% | 74% |
Personalized Viewing Suitability | 78% | 70% |
Wider Content Variety | 76% | 69% |
Simplified Content Search | 74% | 64% |
Continuous Viewing Experience | 51% | 58% |
Fewer Ad Interruptions | 46% | 58% |
On the other hand, brands such as Plum Cosmetics, Dell Technologies (NYSE: DELL), and IGP.com value CTV for its immersive, precisely targeted advertising, effectively reaching digital natives and global Non-Resident Indians, thus boosting their growth and engagement strategies.
India's Connected TV market is not just reshaping domestic media consumption but is also positioned to make a significant impact on international television markets.
#CTV's Role in the Global Marketing Landscape
Connected TV (CTV) provides the opportunity for viewer interaction and personalization, which offers huge potential to increase conversion rates. As television adapts, it remains a vital global marketing tool, building trust and offering unique opportunities to brands and viewers alike.
Complementing CTV is Addressable TV (AV) which allows advertisers to show tailored ads to different households even if they’re watching the same content.
Thus, advertiser interest in TV is at an all-time high, positioning India to emerge as the third-largest TV market worldwide by 2026. That’s because interactive advertising on Connected TV platforms allows brands to engage with Indian viewers more dynamically and personally.
Also, in India, Free Ad-Supported Television (FAST) platforms on Connected TV are becoming popular, merging traditional TV's broad reach with digital targeting capabilities. The rise of FAST caters to the Indian market's appetite for diverse and accessible content.
The future looks promising, with technological advancements like the evolving CTV landscape presenting lucrative opportunities for media and entertainment businesses, particularly small and medium-sized ones, by broadening the audience reach as viewers shift from traditional TV to CTV platforms.
#Why This Is Important for Retail Investors
India is fast becoming an attractive investment hub, with widespread growth fueled by rising incomes, improved internet connectivity, and widespread smart TV adoption. That’s why the investing opportunity in India’s Connected TV market is highly promising. As viewers shift from traditional TV to CTV, the move creates business opportunities in the entertainment sector.
One such business at the forefront of this considerable opportunity is QYOU Media Inc. (TSXV: QYOU) (OTCQB: QYOUF), a fast-growing creator-media company. QYOU’s expertise lies in producing, distributing, and monetizing content created by social media influencers and digital content creators while significantly expanding its Connected TV (CTV) distribution.
This strategic approach aligns with the tremendous potential that the Indian CTV market holds. As the number of CTV households continues to climb, QYOU is well-poised to cater to the evolving preferences of viewers. By offering a wide range of engaging content and harnessing the power of CTV, QYOU aims to be at the forefront of this transformative media landscape, shaping the future of entertainment in India.
This US-based stock holds significant potential as it aims to tap into India's tech-savvy population of 1.4 billion.
India is currently experiencing a rapid increase in internet and social media adoption, boasting the world's largest youth population, with over 650 million individuals under the age of 25 and 850 million under 35. With improving economic opportunities and educational prospects, India presents a fertile ground for digital engagement and growth.
All-in-all the global CTV market is thriving, driven by strong performance in the U.S., significant growth in India and Brazil, and considerable yearly gains in established markets like Europe, indicating a shift in consumer habits worldwide.