The Growth of the Indian OTT Market
The trajectory of India’s OTT market continues its meteoric rise, fueled by affordable mobile internet, smart devices, and a surge in regional content consumption.
In 2025, India is on track to host approximately 100 million paid OTT subscribers, up from 90 million in 2024—showing sustained growth despite rising streaming fatigue among some demographics. More strikingly, the total OTT user base (including free users) has climbed to 600 million, a 10% increase year-over-year .
On the revenue front, the Indian OTT video segment is expected to generate €4.09 billion (~₹36,800 crore) in 2025, growing at a CAGR of 7.1% between 2025 and 2029. This robust performance reflects a well-balanced expansion across subscription (SVoD) and advertising (AvoD) tiers.
In 2023, AvoD led with a 21% growth, while SVoD subscriptions dipped 2%, illustrating a market shift toward free/ad-supported models. Looking forward, industry forecasts (CII‑BCG/EY) suggest SVoD revenues will rise sharply—projected to account for 60% of OTT revenue by 2030, supported by bundled offerings and tiered pricing .
Furthermore, Smart TV adoption—now over 90% of new TV sales—is repositioning OTT from mobile-first to living room-first, with over 40 million CTV households and climbing . The merger of JioCinema and Hotstar into JioHotstar in February 2025 further accelerates this trend, creating content synergies across sports, original series, and regional languages.
Industry analysts predict the market will double by 2028, with SVoD constituting 65% of total OTT revenue and advertising revenues growing with AVOD and hybrid models
Connected TV Advertising in India (2025)
India is undergoing a rapid transformation from traditional linear TV to Connected TV (CTV)—a shift that offers a dynamic and data-driven avenue for brands and advertisers.
CTV Adoption & Consumer Behavior
- CTV households in India are set to reach 50–60 million by end-2025, up sharply from around 45 million in 2024.
- Nearly 23% of Indians now consume only digital content, reflecting a broader shift away from conventional television .
- CTV viewers spend on average more time than traditional TV, with up to 25% of users streaming more than linear networks .
CTV Advertising Market: Scale & Spend
- CTV ad revenue is projected at ₹1,500 crore in 2024, having tripled since 2022
- Forecasts for end-2025 place ad spend between ₹2,300–2,500 crore, growing at a 45% CAGR from 2023 .
- Advertisers are attributing CTV as approximately 5% of total digital ad spend, expected to reach 7–8% soon, and about 12.6% of overall TV ad revenue.
Driving Forces Behind CTV’s Momentum
- Smart TV penetration now exceeds 90% of TV sales, with affordable broadband fueling adoption.
- Expansion into Tier‑2/3 cities is significant—non-metro markets constitute much of the new growth.
- Advertiser finesse: brands use geo-targeted, cohort-based, and interactive ad formats (pause ads, overlays, click-to-WhatsApp), delivering both branding and performance outcomes.
Why Brands Are Betting Big on CTV
- It combines the emotional impact of big-screen TV with digital precision and accountability .
- High ad-view rates: over 90% completion and 95% viewability, often outperforming mobile or desktop channels
- Becoming core to holistic and programmatic media mixes, including synergistic campaigns across screens and retail activations.
Future Projections
By 2026, CTV households in India are expected to cross 65 million, accounting for nearly 30% of all TV households. In 2025 alone, advertising revenue from CTV is projected to reach between ₹2,300 and ₹2,500 crore, growing at an annual rate of approximately 45 percent. CTV is also anticipated to account for 5 to 7 percent of India’s total digital advertising spend, and around 12.6 percent of overall TV ad revenue.
Connected TV in India is no longer an emerging category—it is evolving into a key channel that blends the emotional power of television with the precision of digital. For advertisers and marketers, the opportunity now lies in making the most of this powerful hybrid medium to reach a new generation of screen-first audiences.
India’s CTV space is no longer a niche—it’s a full-fledged, performance-and-branding power channel. As streaming content becomes mainstream, smart TV adoption becomes ubiquitous, and ad tech matures, CTV is set to be a central vehicle in India’s future media strategy.
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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