In recent years, the television advertising landscape has witnessed a remarkable transformation with the advent of addressable TV. Addressable TV, a technology that enables advertisers to target specific households or audience segments with tailored ads, has been gaining significant traction globally. In India, this trend is particularly pronounced, with projections indicating that by 2024, addressable TV will cover 21 pc of television homes, surpassing 45 million households – a growth of 32% over 2023, according to the GroupM report launched recently.
The emergence of addressable TV can be attributed to several factors, according to the report. One key driver is the increasing popularity of connected smart televisions, which offer viewers access to a wide range of content from both traditional broadcasters and over-the-top (OTT) streaming platforms. Major sporting events like the Indian Premier League (IPL) and Cricket World Cup have played a crucial role in accelerating viewership on connected TVs, with peak moments attracting up to 11.8 million concurrent viewers.
Moreover, the proliferation of OTT content across various geographies, including Hindi-speaking markets (HSM) and Kannada-speaking markets (KN), has contributed to the growth of addressable TV. Additionally, the rise of FAST (Free Ad-supported Streaming Television) Channel services has further fueled this trend, with over 110 FAST channels offering a diverse array of content and generating billions of ad opportunities (OTS).
Addressable TV is not limited to connected TV platforms; it is also extending its reach to linear TV through direct-to-home (DTH) and cable services. This expansion means that advertisers now have the capability to deliver targeted ads across a broader spectrum of television viewing experiences.
Furthermore, there is a notable shift in TV advertising towards programmatic methods, enabling advertisers to automate the buying and selling of ad inventory based on data-driven insights. This shift is driving the adoption of dual measurement approaches for total TV planning, allowing advertisers to optimize their campaigns across both traditional linear TV and addressable TV platforms. The report revealed that Addressable advertising accounted for 9.8% of Total TV ad revenues in India 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.
