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India’s media landscape is waking up to the power of addressable TV with the pixels on the screen holding the power to tailor content as per individual needs. Every viewer now is more than just a number in a ratings chart.

According to recent findings by a GroupM report, 64 per cent of people surveyed have watched a TV service with addressable capabilities in the past month versus other OTT services. Going by the numbers and experts, this technology is transforming the way India watches, listens, and engages with screens.

Who is the audience?
Addressable TV has a draw in both urban and rural belts. If 67 per cent of Addressable TV viewership comes from metro cities, 64 per cent comes from the non-metros.

Another interesting revelation the report made was that household incomes of Addressable TV audiences are 1.09x that of households that watch Free TV services. These audiences are also more active spenders for shopping and leisure items.

Advertising avenues
According to Karan Anand, SVP – Strategy, Interactive Avenues, Addressable TV’s rapid growth in India is propelled by the expanding digital infrastructure and a marked shift towards personalised content consumption.

“Advertisers are drawn to Addressable TV due to its higher ROI, driven by efficient ad spend and the ability to gather real-time data-driven insights for more strategic campaign adjustments in a fragmented media landscape.”

The adoption of Addressable TV technology in India has significantly impacted the advertising landscape, offering advertisers precision in targeting their ads to specific demographics, thereby optimising their investment and enhancing ROI.

For consumers, this technology means a more personalised viewing experience, with advertisements that are more relevant to their interests, leading to less ad fatigue and a more enjoyable content consumption experience.

When consumers see ads that are relevant to them, they are more likely to pay attention and engage with the content. This can result in a more positive perception of the advertising and the brand.

The Obstacles
The jury is still out on whether Addressable TV benefits the TV viewer with more focused advertising. As per Vivek Gupta, Managing Director (Research), Ipsos India, there are privacy concerns, but it is still in the early days as the new technology and intelligence of Addressable TV is still to be understood comprehensively.

“If the Addressable TV passes back information to the media and advertisers on the viewership habits and somewhere ties up to their purchase habits, it will get into the GDPR tangle,” he added.

The other challenge would be how would it differentiate between different viewers in the household, each of whom would have their own viewership preferences and habits. In India, TV viewing is a family and not an individual experience.

The IT ministry may have a strong role in framing legislations for this domain, says Gupta, but it is still early days as penetration of these next level of connected TVs may be very low currently.

Rohan Chincholi, Managing Partner – Digital, Havas Media India, highlighted, “Fragmentation across devices and platforms makes consistent and effective audience reach difficult. While it offers precise targeting, achieving scale can be challenging, especially for advertisers aiming at broad or niche audiences.”

Ensuring compatibility between targeted ads and surrounding content is crucial for viewer engagement and brand safety. Additionally, industry collaboration among stakeholders is necessary to standardise practices, address interoperability issues, and drive widespread adoption of Addressable TV.

What lies ahead?
Today, 9.8 per cent of the total TV advertising revenue goes towards Addressable TV services. In the next three years, this number will go up to 16 percent.

Gupta underlined, “Addressable TV is going to grow at a fast clip with the evolving technology and the premiumisation trend. It may help stem the decline of spending on TV which is moving away to digital.”

Addressable TV is driving the evolution of the TV advertising industry, moving away from traditional broad-based advertising to more targeted, data-driven approaches. This shift is influencing how advertisers plan and execute TV campaigns.

“Encouragingly, Smart TV shipment data indicates close to double-digit growth, reflecting increasing consumer adoption. Moreover, India ranks among the top three markets globally with the lowest cost per 1 GB of data, fostering greater accessibility to digital content,” added Chincholi. Campaign Asia