K for Kaleidoscope: The elusive quest for CTV measurement in India

As advertisers in India push for greater transparency in media measurement, the media industry remains hesitant to provide clear answers. Nowhere is this more evident than in the realm of Connected TV (CTV), where measurement remains an elusive goal.

Despite its growing importance, CTV measurement continues to face significant hurdles in the country. 

Comscore's ambitious plan to launch India's first-ever CTV survey in September 2024 has stalled due to a lack of participation from broadcasters. With only four broadcasters on board, the initiative falls short of the required ten sponsors.

The primary obstacle appears to be financial, with broadcasters citing economic constraints as a key reason for their reluctance to invest. Each broadcaster is required to contribute about Rs 10 lakh for the survey. It’s not a big amount considering the industry size. The apprehensions over outcomes are believed to have made them drag their feet. 

Notably, the Broadcast Audience Research Council (BARC) India had also planned to start CTV measurement in the country about two years ago. The council is believed to have ordered panels and even identified premium households for the survey a few months ago. However, the measurement is yet to kick off for reasons well-known to the council.  

In contrast, other countries have made significant strides in CTV measurement. In the US, Comscore's CTV measurement solution provides insights into viewer behavior and ad effectiveness, demographics of audiences, such as age and gender and YouTube audiences across all digital devices in the US. 

Similarly, in the UK, BARB (Broadcasters' Audience Research Board) launched a CTV measurement tool that provides detailed insights into viewer behavior. Barb has also begun to measure TV co-viewing data for linear and streaming. 

The European Broadcasting Union (EBU) too has launched a CTV measurement initiative that aims to provide a standardized framework for measuring CTV audiences across the region.

While it's true that developed countries have a higher penetration of CTV viewers, with approximately three-quarters of the population in the US and UK owning CTV devices, India's sizable and rapidly growing market cannot justify the lack of robust measurement standards.

A market of 40 million consumers?

With an estimated 40 million Indian households now embracing CTV, a growing trend of cord-cutting is underway. This seismic shift has led to a significant surge in engagement on CTV platforms, where viewers actively select content, resulting in a more attentive and receptive audience.

For marketers, this presents a unique opportunity to target specific, highly-engaged segments with precision and accuracy. By harnessing data-driven insights, advertisers can tailor their ads to align with viewer behaviors, preferences, and demographics, maximizing the effectiveness of their campaigns.

Advertising experts note that TV buyers utilize CTV to achieve incremental reach beyond linear TV, as well as to target niche audiences that would be harder or more costly to reach via broadcast TV. Additionally, CTV provides the big-screen experience necessary for achieving brand goals. Furthermore, CTV offers potential for performance-driven activities through targeted and interactive ad formats.

“CTV measurement is crucial for several other reasons as well. Firstly, it enables advertisers to understand the reach and effectiveness of their campaigns. Secondly, it provides valuable insights into viewer behavior and preferences. Besides, it gives broadcasters a clear idea about their digital reach and impact which will eventually help them to assert ad rates,” marketing head of a top FMCG player said. 

At the same time, ad spends on CTV are rising exponentially. According to Omdia's report "Alternative Revenue Streams in the Connected Era", by 2029, CTV is expected to account for over 40% of global TV screen advertising revenue, outpacing traditional linear broadcasts. 

India's CTV advertising expenditure is also poised for significant growth, with projections indicating it will reach $400 million (approximately ₹3,280 crore) by 2027, according to a MiQ survey. To put this into perspective, India's linear TV ad spend stood at ₹35,000 crore in 2023. 

Furthermore, the report highlighted that a staggering 82% of Indian viewers engage with TV ads, making CTV an increasingly attractive platform for advertisers.

Given the promising growth trajectory, it is essential that the Indian media industry draws inspiration from global best practices and prioritizes robust CTV measurement frameworks to unlock the full potential of this emerging platform.