Trends in CTV and OTT in 2024

Hello Readers,

The digital media landscape is continuously evolving, and the rise of Connected TV (CTV) and Over-the-Top (OTT) platforms is a testament to this transformation. As advertisers seek new ways to reach their audiences, understanding the dynamics of these platforms is crucial. This newsletter delves into the key insights from the Cosmcore CTV and OTT Quick Guide, focusing on the Indian market.

Key Points and Statistics

1. Global Trends in CTV and OTT

• Cordless Households: A significant 58% of households globally are cordless, emphasizing the potential of CTV to deliver incremental reach.
• Viewing Time: On average, each household accessed five streaming services, resulting in 122 hours of video consumption per household.
• Market Penetration: In March 2023, 89 million households streamed OTT content on CTV devices, accounting for 80% of U.S. households.

2. Demographic Profile of CTV Viewers

• Age Influence: Younger households (ages 1-17) are the highest consumers of CTV, averaging around 160 hours per household per month.
• Household Size: Larger households consume more CTV, with those having five or more members watching nearly twice as much as single-member households.

3. Cord-Cutting and Cord-Nevers

• Growth in Cordless Households: There has been a 19% increase in cord-cutters and a 30% rise in cord-nevers over the past year, indicating a shift away from traditional cable subscriptions.

4. Popular CTV Devices and Services

• Device Usage: Smart TVs remain the most popular CTV devices, used by 57 million households. Streaming boxes and sticks, such as Roku and Amazon Fire TV, are also widely used.
• Top Streaming Services: Netflix leads with the highest number of CTV households, followed by YouTube, Hulu, Amazon Video, and HBO Max.

India Market Focus

1. Growth of OTT Platforms in India

India is witnessing a rapid adoption of OTT platforms, driven by affordable internet access and the proliferation of smart devices. The Indian market is characterized by a diverse range of content catering to various regional languages and preferences.

• User Base: India's OTT market has grown exponentially, with platforms like Disney+ Hotstar, Amazon Prime Video, and Netflix leading the charge.
• Content Consumption: Indian audiences prefer a mix of local and international content, with a growing interest in original web series and movies.

2. Advertising Opportunities on CTV and OTT

With the decline of traditional TV viewership, advertisers in India are increasingly turning to CTV and OTT platforms to reach their target audiences.

• Targeted Advertising: CTV and OTT offer advanced targeting capabilities, allowing advertisers to reach specific demographics based on viewing habits and preferences.
• Interactive Ads: Interactive and shoppable ads on CTV provide a unique opportunity for brands to engage viewers directly.

3. Challenges and Future Outlook

While the growth of CTV and OTT in India presents numerous opportunities, some challenges need to be addressed.

• Data Privacy: Ensuring user data privacy and compliance with regulations is crucial for the sustained growth of these platforms.
• Content Monetization: Finding the right balance between subscription models and ad-supported content is key to maximizing revenue.

Conclusion

The shift towards CTV and OTT platforms represents a significant change in the media landscape globally and in India. As more households cut the cord and embrace streaming services, advertisers have a unique opportunity to engage with their audiences innovatively. Understanding the demographic profiles, viewing habits, and preferences of CTV viewers is essential for crafting effective marketing strategies. As the market continues to evolve, staying abreast of these trends will be crucial for success in the digital age.

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References: Cosmcore. (2023). CTV & OTT Quick Guide: Key Insights Every Advertiser Should Know on the Impact of Streaming.