By 2024, global spending on CTV advertising is projected to reach US$29.6 billion, propelling the fast development of OTT platforms. CTV ads viewers were engaged 71% of the time, driving the ROI of CTV 30% higher than other marketing channels, as reported by Adjust.
In India, over 90% of TVs sold in the past year were Smart TVs, driving growing CTV advertising spend. The GroupM forecasts a CAGR of 47% in CTV ad spend until 2027, reaching nearly $86 million in 2023 and $395 million by 2027. With the rise in Smart TV penetration, OTT captures viewers transitioning from traditional TV. Today, Smart TVs bring OTT to the largest screen in the house, claiming one-third of all OTT viewing hours, approximately 3 billion every month, according to the report of The Trade Desk.
Many brands purely turn to OTT without CTV due to the higher cost per impression compared to OTT. According to a MediaScience/Effectv study, viewers exposed to TV and digital ads, as opposed to digital ads alone, spent 3 times more time with the ads, had a twice better brand recall, and saw a 15% increase in their purchase intent. Moreover, The report of The Trade Desk (TTD) also found that the ads on big screen is more effectively to build consumer trust, compared to mobile ad and user-generated content (UGC) channels, which are often skipped and less trusted. Based on the campaigns data in The Trade Desk , the search conversion rate (without CTV ad exposure) was 6%, but when coupled with a CTV ad, that conversion rate increased to 14%. The emotional responses to CTV show lead to a 48% recall of associated ads.
In the United States and the United Kingdom, CTV boasts impressive penetration rates of 81% and 85%, respectively, as revealed by a recent Amagi report. Even so, CTV advertising is still at initial development in Asia market. Intense competition among OTT players in Asia is unfolding, characterized by strategic moves such as securing prime placement on TV homepages, claiming shortcut keys on TV remotes, and vying for user attention. This rivalry extends to bundling high ARPU users through VIP services and capturing user engagement through compelling content.