CTV gains ground as advertisers shift budgets from traditional TV
CTV
) is rapidly emerging as a critical growth engine in media plans, with advertisers reallocating traditional linear television budgets to reach more targeted and measurable audiences. Industry leaders confirm that the shift is well underway, accelerated by the growing penetration of smart TVs and broadband access across Indian households.
Globally, CTV advertising revenues are projected to reach INR 4.26 lakh crore by 2029, equivalent to 45 percent of traditional broadcast TV advertising, according to PwC. India, while still in the early stages, is catching up fast. As per industry estimates, CTV advertising in India grew from INR 450 crore in 2022 to INR 1,500 crore in 2024. Projections suggest it could reach INR 3,500 crore by 2027.
Within overall TV advertising budgets CTV currently represents approximately 4.4 percent of India's total TV advertising market. However, the growth trajectory is accelerating rapidly. Industry projections suggest that by 2026, 35 percent of all TV advertising budgets in India will be allocated to CTV. Another forecast indicates CTV will constitute 42 percent of total TV ad spend by 2027.
Surge in CTV consumption
Anil Pandit
, managing partner at
Publicis Media India
, said smart TVs are now the default choice in both urban and non-metro markets. 'The accessibility factor cannot be understated. We're witnessing democratisation of premium video consumption,' he said.
This shift has prompted a change in media planning strategies. 'We have developed integrated TV and CTV planning frameworks that combine traditional TV's reach with digital's precision targeting,' Pandit added. 'Our research shows that integrating CTV delivers a seven percent uplift in metro markets and 4 percent higher reach in Hindi-speaking markets when combined with
linear TV
. This data-driven approach helps optimise cost efficiency and maximise audience engagement.'
The EY-FICCI 2025 report estimates that India had 50 million monthly active CTV sets by the end of 2024, with about 30 million used weekly. This reflects a 30 percent year-on-year increase, supported by 46 million broadband-connected homes and the rising availability of smart TVs priced under INR 10,000.
Deleise
Ross
, senior vice president and head of business at Mudramax, said smart TVs are expected to reach 40 million units by 2025. This, she noted, is moving digital video consumption from handheld devices to larger screens. 'CTV combines the experience of television with the targeting capabilities of digital. We are allocating dedicated budgets to CTV to better engage younger and more connected audiences.'
CTV closing gap with broadcast TV
Advertisers are increasingly leveraging CTV to target affluent, urban households, a demographic previously reached via high-definition (HD) linear television. Mayank Shah, VP at
Parle Products
stated, 'If you want to target that segment today, CTV is a very effective medium. Unlike HD TV, where you're still dependent on BARC data, with CTV, you know the actual numbers and you can track exactly how many people you're reaching.'
Parle now allocates 10 to 15 percent of its combined TV and digital budget to CTV, with roughly 15 to 20 percent of the CTV spend redirected from HD linear TV and another 20 to 25 percent from digital video. 'It's a mix,' Shah added. 'Earlier, that entire budget might have gone to TV or digital separately. Now, a portion from both funnels into CTV.'
According to Ross, CTV currently accounts for a small portion of overall television advertising but is growing at three to four times the pace of traditional TV. 'It could account for one-fourth of all TV ad spending in India over the next few years,' she said, adding that this will depend on smart TV penetration and the evolution of programmatic buying infrastructure.
Pandit agreed that India's CTV trajectory is robust, though it is starting from a lower base compared to mature markets. Industry projections suggest that 35 percent of TV ad budgets in India will go to CTV by 2026, increasing to 42 percent by 2027. While the global target of $51 billion by 2029 may be ambitious for India, Pandit said the market is following a similar path with a 2–3 year lag. 'A projected annual growth rate of 47 percent suggests we'll reach scale faster than expected,' he added.
According to
Media Partners Asia
, CTV ad revenues accounted for 11 percent of total TV revenues in India in 2024. EY-FICCI data also indicates that the adoption is no longer metro-centric. Five of the bottom ten states by GDP per capita ranked among the top ten in CTV impression growth. Forecasts indicate that the number of connected TV homes could rise to 48 million by 2027.
Pandit said budget reallocations are following three patterns: direct migration from linear TV; incremental digital investments; and consolidation of scattered digital video spends into CTV for better impact and measurement.
While linear TV still delivers scale, its role is evolving. As per the reports, the segment saw a six percent drop in ad revenues in 2024, led by a fall in ad volumes and over 10 percent decline in advertiser count. Subscription revenues also fell 3 percent, with six million Pay TV homes switching to Free TV or CTV.
Road ahead
CTV's targeting capabilities are a key factor behind its rising adoption. Pandit said brands can now target audiences by age, income, and interests. 'For example, brands can specifically reach users aged 25 and above with annual incomes above INR 6 lakh, something traditional TV cannot offer.' The platform also provides comprehensive measurement tools, real-time optimisation, and attribution models, which have gained traction among performance-focused marketers. It allows for regional and linguistic targeting, making it valuable for brands looking to go beyond urban markets.
FMCG, automotive, e-commerce, B2B services, financial services, and consumer tech are currently leading CTV spending in India. Ross said categories such as automobiles, smartphones, and large appliances are using CTV for household-level targeting and visual storytelling.
Shah added that as smart TV sales grow, CTV viewership will expand. 'Most new TVs today are smart TVs. With bundled broadband and TV services from providers like
Jio
and Airtel, more households will shift to connected platforms.'
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