In 2023, Connected TV (CTV) will embark on a new era of efficiency for advertising. TV has been a mainstay of advertising for many years while the advent of connected TV has fundamentally changed the nature of television advertising and how success is measured. According to the IAB 2022 Video Ad Spend report, 73% of video buyers expected to fund increases in CTV spending by moving dollars away from linear TV. The IAB 2023 Outlook Survey projected CTV to lead 2023 digital ad spend growth at 14.4%. In India, a GroupM Finecast and Kantar report forecast that brands will spend $395 million on CTV advertising by 2027, as reported by The Economic Times.
How is CTV different from traditional TV?
To understand how CTV shapes digital advertising, it is important to understand the difference between traditional TV and CTV. A traditional TV or linear TV is the classic system with scheduled TV programs airing on the original channel, through which viewers can only watch content at specific times that’s available only on particular channels, while CTV is an internet connected TV device. With CTV, user is able to watch linear TV content and stream video based on personal interests and subscription at any time they want. In this way, CTV offers interactive solution for brands with track-able data and analysis, making placement more cost-effective.
What is the difference between CTV and OTT?
There is another TV available in the market: OTT. Many users are confused CTV with OTT. The simplest way to differentiate the two is: OTT is a way to deliver video content while CTV is an internet connected device to watch the content. In terms of advertising, OTT can help widely cover audience as it is available in different devices. It is a double edged sword as wide coverage will result high placement cost due to same user may appear in different devices. CTV doesn’t have such problem as it targets users with unique ID based on device, making spending more effectively.
Why is CTV growing in India?
In recent years, Indians have had an insatiable appetite for video content. According to DataReportal’s Digital 2022: India report (We Are Social and Kepios, February 2022), 95% of internet users aged 16 to 64 watch videos online each week, 97.2% stream TV content over the internet, and streaming accounts for 54.5% of their total TV viewing time. Bain & Company reported that India’s online video user base had grown to more than 350 million people, growing 24% over 2018 to 2020, nearly twice as fast as markets such as China and Indonesia.
Younger generations are particularly fond of connected TV, while traditional TV is becoming increasingly associated with older age groups.
According to KPMG in India (November 2022), TV penetration in India stood at around 70%, including 87% of urban and 61% of rural households. Another prime factor for the growth of CTV is the affordable smart TV brands available in the market. The market is dominated by MiTV, followed by Samsung and LG.
Where will new CTV audiences in India come from?
The IAMAI and Kantar ICUBE 2020 report estimated that India will have more than 900 million active internet users by 2025. A substantial amount of growth in TV households is anticipated to stem from the rural markets, including 61% penetration contributed by all rural households. According to KPMG, this growth will primarily take the form of both Pay TV and Free to Air (FTA). All indications point to DD FreeDish reaching up to 52-55 million households, while an augmented offering of fresh content and increasingly reasonable prices mean more households than ever are expected to subscribe to Pay TV services, creating a host of attractive opportunities for advertisers targeting a broader consumer base.
For later coverage, see how India’s smart TV boom is transforming CTV ads (2024) and CTV and influencer strategies for IPL 2025.
Frequently Asked Questions
What is CTV advertising?
CTV advertising is advertising shown on internet-connected TV devices. Unlike linear TV, which airs scheduled programs on fixed channels, CTV lets viewers stream content on demand, and it gives advertisers trackable data for targeting and measurement.
What is the difference between CTV and OTT?
OTT is a way of delivering video over the internet, so it can reach the same viewer on phones, laptops and TVs. CTV is the internet-connected TV device itself. Because CTV targets a unique device ID, it avoids paying to reach the same viewer several times across devices.
Why are advertisers in India moving budget to CTV?
Indian audiences watch a large and growing amount of online video, younger viewers favor connected TV over traditional TV, and affordable smart TV brands have widened access to connected TVs.
Where will new TV audiences in India come from?
According to the KPMG figures cited when this article was published in 2023, much of the growth in TV households was expected to come from rural markets, through both Pay TV and Free to Air services.
First published March 20, 2023. Updated October 17, 2026 with a clearer structure, a summary and an FAQ. Figures are as reported in 2023; source links added and wording aligned with the original reports in October 2026.