55% Surge in Small Towns Drives India's Connected TV Boom

India's connected TV (CTV) market has witnessed a significant surge in growth, driven primarily by small towns. The country now boasts an estimated 62-65 million CTV households and 207 million viewers, with non-metro India accounting for the majority of the CTV audience.

The growth in CTV audiences has been substantial, with a 55% increase in small towns, outpacing the 21% growth in metros and 46% in mini metros. Rural India has seen the highest growth, with a 110% increase in CTV audiences. This trend is attributed to the lower base in smaller markets, which are recording significantly higher growth.

The CTV audience has grown three times since 2022, with viewers spending an average of 2.9 hours a day on the platform. About 67% of CTV viewers are either new to the medium or spending more time on it than a year ago. Bihar, Jharkhand, Rajasthan, Kerala, and parts of the Northeast have recorded higher than average growth.

CTV penetration is around 47% in urban markets, indicating continued headroom for growth. The expansion of CTV is not translating into a simple replacement of linear television, with about 68% of CTV viewers also consuming linear content. In fact, 54% of CTV homes are either cord cutters or light linear viewers.

## What it means for advertisers The growth of CTV in non-metro India requires advertisers to rethink their strategies. With the majority of CTV viewers consuming both linear and connected content, advertisers need to consider cross-screen frequency management and unified measurement. This shift in viewer behavior presents an opportunity for advertisers to reach a wider audience and increase their brand's visibility.

The CTV market in India is expected to continue its upward trajectory, driven by the growing demand for connected devices and the increasing availability of high-speed internet. As the market evolves, it will be interesting to see how advertisers and content providers adapt to the changing viewer landscape.