The Growth of the Indian OTT Market
The Indian OTT market has been phenomenal, and the pandemic further boosted video consumption. Today, video advertising is booming as Indian households rapidly adopt Connected TV (CTV) technology.
According to CII-BCG (2023), India’s media & entertainment industry will grow to $55–70 billion by 2030, at a CAGR of 10–12%. The OTT segment currently accounts for 7–9% of this market but is projected to rise to 22–25% by 2030.
India is witnessing a surge in OTT subscriptions. Between 2019 and 2021, SVoD users grew by 65–70%, with paid subscriber numbers reaching nearly 100 million by 2022 — an impressive 51% growth, according to Exchange4Media.
This growth is driven by the popularity of platforms like Amazon Prime Video, Netflix, and Disney+ Hotstar. Additionally, India’s OTT platforms invested ₹4,900 crore (~$665 million) in original content in 2021, as per Omdia via Exchange4Media.
Improved internet access and smartphone penetration in Tier 2 and Tier 3 cities is also fueling this rise. According to IAMAI-Kantar Cube (2023), India’s active internet user base is projected to grow from 622 million in 2021 to 900 million by 2025. Rural internet growth will outpace urban areas, making OTT a truly pan-India phenomenon.
Connected TV Advertising in India
India is experiencing a steady shift from linear traditional TV to Connected TV (CTV). This shift presents a valuable new advertising opportunity for brands and advertisers.
According to Mediasmart India’s CTV Report (2021), CTV viewership grew 31% in 2021. At that time, 21% of CTV households were cord-cutters, and 22% were cord-nevers.
While global CTV viewership continues to rise, India’s CTV market is still young but full of potential. 78% of CTV owners actively use streaming apps, and 93% of them have internet access, according to the same Mediasmart India report.
Smart TVs now dominate the TV market. Counterpoint Research (2024) reports that 93% of TVs sold in 2023 were smart TVs, even as total shipments declined 16% YoY. Larger-screen formats (55-inch and above) grew 23%, and QLED TV shipments surged 182%, reflecting growing demand for premium in-home entertainment experiences.
Why Opt for Video Advertising with CTV?
1. Booming market
CTV inventory is currently limited but highly desirable. This scarcity creates a premium advertising environment, offering brands strong visibility.
2. Millennial audience
CTV is the future of video ads, especially for millennial and Gen Z audiences. According to 10th Degree, younger viewers are 67% more likely to live in CTV-only households, and 25% say they won’t subscribe to traditional pay-TV.
Platforms like Amazon, Netflix, Disney+Hotstar, and YouTube dominate this space. YouTube alone now captures ₹14,300 crore (~38%) of OTT revenues, according to COTT Report 2025.
3. CTV Ads do not bother the audience
CTV and traditional TV provide a similar viewing experience, but CTV offers far better targeting. Audiences are generally accepting of CTV ads because they understand that ads help subsidize their content.
CTV campaigns typically see 90–95% view-through rates (VTR), indicating high ad engagement. According to Ormax Media, Indian audiences increasingly consider video ads as an acceptable trade-off for free or affordable streaming services.
4. In-depth targeting
CTV allows advertisers to precisely target audiences by city, PIN code, household profile, and interests. This level of control is not possible with traditional TV.
As per FICCI-EY & Exchange4Media, CTV households are expected to grow from ~30 million in 2024 to 80 million by 2025. Advertisers can now reach their exact target audience at scale, whether it’s an affluent metro consumer or an emerging Tier 2 viewer.
Benefits of Connected TV Advertising
Premium audience
CTV viewers typically belong to urban, higher-income households. According to Mediasmart India & VTION, 89% of CTV users are active social media users, 82% use e-commerce platforms, and 44% are gamers.
Reach
India’s CTV audience is growing rapidly, and CTV is on track to surpass traditional TV among younger demographics. Digital ad spending already overtook traditional TV in 2024, capturing 56% of total ad spend, according to FICCI-EY 2025 Report.
Unique opportunities
CTV offers advertisers robust reporting, including real-time campaign analytics and cross-device attribution. Innovations such as clickable and shoppable ads are also emerging, enhancing CTV’s performance-driven capabilities.
SMEs and CTV
What’s stopping SMEs from using CTV advertising?
1. Misconception regarding budget
Many SMEs assume CTV advertising is expensive. In reality, CTV campaigns can start at ₹4 lakh, making it accessible even to local businesses. Additionally, SMEs can run highly targeted campaigns in specific cities or states — avoiding wasteful national spends.
2. Can’t decide between CTV versus linear TV advertising
CTV and linear TV complement each other. Brands can use linear TV for mass reach while leveraging CTV for precise targeting and frequency control.
For example, Apollo 24/7 used CTV ads during IPL cricket to promote doctor consultations, targeting metro viewers. Minimalist ran CTV campaigns for its personal care range. Bajaj Finserv used CTV to promote EMI offers in Delhi and Hyderabad — showing how SMEs and larger brands alike are successfully using this medium.
Why CTV Advertising and SMEs are a Match Made in Heaven
Once you go CTV, you can never go back
CTV adoption is growing because it caters to young, tech-savvy audiences. Gen Z and millennials prefer platforms like Amazon, Netflix, Hotstar, and YouTube — and most no longer see the need for conventional TV subscriptions.
More video ads with CTV
CTV inventory is growing fast, with significant demand from advertisers. Premium formats such as mid-roll cricket ads, category-specific sponsorships, and city-targeted packages are already available.
Drive more sales with CTV ads
CTV drives direct response and sales. According to Magnite Asia CTV Report, over 60% of Indian CTV viewers use their mobile devices to shop while streaming. With emerging cross-device attribution and shoppable formats, CTV is becoming an effective performance channel.
Conclusion
CTV advertising offers Indian SMEs a rare opportunity: the power of television combined with the targeting of digital — at an affordable price.
The time is ripe. According to FICCI-EY and MIQ, India will have ~80 million CTV households by 2025, making it one of the top 3 digital ad channels.
SMEs can start small — running video ads in selected cities, tracking campaign performance in real time, and scaling up based on ROI. Whether you’re promoting a regional restaurant, an e-commerce brand, or a financial product, CTV advertising can deliver high-impact, measurable results.
If you’ve ever dreamed of advertising on TV, now is your moment. With CTV, television advertising is no longer the privilege of large FMCG brands — it’s available to every smart marketer.
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