In conversation with Russhabh R Thakkar, Founder and CEO, Frodoh World
As we embrace the digital era, there has been a significant surge in content consumption, giving rise to unprecedented levels. This surge has, in turn, catalyzed the expansion of Connected TV (CTV) advertising. As CTV advertising continues to dominate the landscape, it unveils fresh opportunities for brands, not only amplifying their outreach but also facilitating precise audience targeting through technological tools. To gain insights into the present landscape of CTV advertising, the challenges confronting marketers, and the potential growth prospects and key trends in this domain, we engaged in a discussion with Russhabh R Thakkar, Founder and CEO of Frodoh World.
Agency Reporter – Can you provide an overview of the current state of the CTV advertising industry and its key trends?
Russhabh R Thakkar – The current state of the Connected TV (CTV) advertising industry is marked by a transformative journey in 2023. The surge in Smart TV adoption, especially in India, has significantly impacted connectivity, reaching 68% of households with a 25% increase. Global streaming platforms like Netflix and regional favorites such as Hotstar and Zee5 have played a key role, contributing to users spending an average of 3.5 hours daily on connected TVs. Noteworthy trends include a 30% rise in both the creation and consumption of localized content, emphasizing India’s linguistic diversity. Voice assistants integrated into Smart TVs, like Google’s and Amazon’s, have become integral, embraced by 40% of users. Smart TVs are also evolving into gaming hubs, witnessing a 15% increase in user engagement. The imminent arrival of 5G holds promise for seamless streaming, aligning with the expectations of 82% of connected TV users. Advertisers are capitalizing on this digital revolution, with personalized ad engagement experiencing a significant 20% boost.
Agency Reporter – How has the CTV landscape evolved in recent years, and what factors are driving these changes?
Russhabh R Thakkar – In recent years, the CTV landscape has undergone a significant evolution driven by advertisers recognizing its potential to engage premium and affluent audiences. The shift towards CTV is fuelled by its precise targeted advertising, offering improved engagement with specific demographics compared to traditional methods.
The seamless integration of CTV into smart homes and the proliferation of wireless technology contribute to its increasing appeal. Looking forward, the trends shaping the CTV space in 2023 indicate a continued commitment to innovation, positioning the industry at the forefront of digital ad-tech advancements.
Agency Reporter – What are the main factors contributing to the growth of CTV advertising, both globally and within India?
Russhabh R Thakkar – Connected TV is transforming how we watch TV and making the oldest screen in our homes new again.
In recent years, a quiet revolution has been unfolding in our living rooms. The ascent of digital video has coincided with a decline in linear TV viewership. However, Connected TV has breathed new life into the oldest screen in our homes. Nearly half of all global video impressions now occur on Connected TV, drawing people away from individual small screens back into the shared space of the living room.
So, why this return to the living room?
One compelling reason is moments of connection. While linear TV once brought families together for their favorite shows, Connected TV takes it a step further, allowing us to connect with communities and passions both inside and outside our homes. Livestreaming concerts, participating in fitness classes, and engaging in religious ceremonies are now commonplace on Connected TV.
The living room remains the central gathering place for families to enjoy their favorite content. However, with Connected TV, the television transforms into a gym, a gourmet restaurant, a concert hall, and even a place of worship. Mood-based content, a popular concept for years, takes on a new dimension on Connected TV. The big screen and enhanced sound create an immersive experience, enabling people to set the mood for their families or guests, whether it’s tranquil, focused, or inspiring.
Connected TV has not only supplemented linear TV but also substituted it. Content that was once exclusive to linear TV, such as news and sports, thrives on Connected TV. This platform delves deeper into topics that traditional media may not cover due to bandwidth limitations. The focus shifts from programmed linear TV to personalization, as people use Connected TV to be transported, alter their moods, and break away from the structured nature of linear TV programming.
This represents a fundamental shift in consumer behavior, making Connected TV an indispensable part of their viewing journeys. In 2023, Connected TV emerged as the fastest-growing screen for Digital Ad-Tech growing to upwards of 33 Mn households. The combination of many OTTs exceptional content and the dynamic living-room viewing experience cements the notion that this quiet revolution is here to stay.
Agency Reporter – How are consumer behaviors impacting the CTV advertising market, and how is the industry adapting to these changes?
Russhabh R Thakkar – The streaming boom has landed us back into our living rooms. Globally, casting watch time just for YouTube grew by over 75% over a year. More CTV converts means more ads are being watched on the big screen at home – even unreachable audiences like cord-cutters and cord-nevers. And it is not just quantity, CTV viewers are also more engaged & emotionally invested.
Here’s why they’re hooked: Today’s viewers are moving from ‘me’ to ‘we’ in the living room. They’re streaming their favorite content as a communal activity and sharing the magic together with their loved ones. And they’re even more engaged when watching as a group. The average percentile rank of emotional response to ads: 37% Solo viewers, 71% Co-viewers. During an ad, co-viewers experience a stronger response than solo viewers.
Sometimes, bigger is just better! CTV setups are all about enhanced audio & visual quality, creating a more immersive experience that keeps audience coming back to their favorite content. Across APAC, CTV viewers are sitting down to watch for longer periods of time, and choosing to watch longer videos. +60% rise in Japan when compared to mobile & desktop. Audiences watch longer videos too, +30% rise in Australia and +200% in India in the last one year. For people who value both comfort and quality, CTV is a perfect match.
Agency Reporter – How are changing patterns in content consumption influencing the strategies adopted by advertisers in the CTV space?
Russhabh R Thakkar – The way we watch stuff is changing, and this is affecting how advertisers do their thing on Connected TV. Advertisers are moving their money to digital platforms and streaming services because that’s where more people are watching, leaving traditional TV behind. They’re using lots of data to figure out who to show ads to and make it more personal. Ad placement is getting automated with programmatic advertising on CTV, making things smoother. Advertisers want their messages to be consistent, so they’re making sure you see the same stuff whether you’re on your phone, tablet, or TV. Tools for measuring how ads perform are getting more important, and so is keeping ads safe from fraud. Lastly, they’re putting personalized ads in shows in real-time to make what you watch even more interesting. All these changes show that advertisers are trying hard to keep up with how we watch things nowadays
Agency Reporter – How important are collaborations and partnerships in the CTV advertising industry, and can you share any notable examples of successful collaborations?
Russhabh R Thakkar – Strategic collaborations and partnerships are indispensable in the ever-evolving CTV advertising industry. Imagine a scenario where a CTV advertising platform aligns with industry leading OTT platforms. This synergy not only opens doors to premium content but also provides advertisers with unprecedented access to a vast and engaged audience, catering to the preferences of modern consumers.
In this landscape, affiliations with prominent FAST channels and SSPs become crucial, offering advertisers a diverse and optimized ad inventory. The seamless integration with smart TV manufacturers ensures capturing the expanding market of smart TVs.
These collaborations are strategic imperatives for platforms, also for advertisers seeking innovation, extensive reach, and measurable impact in the CTV advertising domain. They empower advertisers to deliver targeted, immersive, and brand-safe experiences to their audiences, shaping the narrative of success in this space.
Agency Reporter – What challenges do advertisers commonly face when transitioning to CTV advertising, and how can these challenges be mitigated?
Russhabh R Thakkar – Advertisers more often than not may run into some common challenges when making the shift to CTV advertising. First off, there’s the complexity of dealing with new technology and understanding how CTV platforms operate. Then there’s the challenge of measuring the success of CTV ads accurately, as traditional metrics might not apply the same way. Another hurdle is ensuring that ads reach the right audience and are seen by genuine viewers. Privacy concerns are also a big deal, with advertisers needing to navigate the rules around collecting and using viewer data. But there are ways to tackle these challenges. Advertisers can invest in training to get the hang of CTV tech, use advanced analytics for better measurement, leverage data for precise targeting, prioritize user privacy, and stay updated on industry standards. It’s a bit of a learning curve, but these steps can make the transition to CTV advertising smoother.
Agency Reporter – What do you foresee as the future of CTV advertising, and are there any emerging technologies or trends that could shape the industry in the coming years?
Russhabh R Thakkar – We’re likely to see even more personalized and interactive ads, making the viewing experience more engaging. Targeting capabilities are expected to become even more sophisticated, with advertisers getting better at reaching specific audiences. The integration of artificial intelligence (AI) could further enhance ad personalization and efficiency. Additionally, as more people cut the cord and shift to streaming services, advertisers might explore innovative ways to integrate ads seamlessly into the content. So, buckle up for a future where CTV advertising becomes more dynamic, immersive, and finely tuned to individual preferences, leveraging the latest tech trends to capture audience attention.
Agency Reporter – How can advertisers prepare for and stay ahead of upcoming changes in the CTV landscape?
Russhabh R Thakkar – Flexibility is crucial. The CTV space evolves rapidly, and advertisers need to be adaptable. Being open to trying new ad formats, technologies, and strategies can give them a competitive edge.
Collaboration is another key aspect. Working closely with technology partners, CTV platforms, and industry experts fosters a collaborative environment. Advertisers can gain insights, share best practices, and collectively navigate changes in the CTV landscape.
Lastly, preparing for changes in privacy regulations is essential. Advertisers should stay compliant with evolving privacy standards, ensuring responsible use of viewer data and maintaining trust.