Authored by Prabhvir Sahmey, Senior Director, Samsung Ads

In the land of a billion screens, streaming entertainment is a daily habit for India’s internet users. As our TVs become smarter, larger, offering better content, and hold a more central position in our households, Indians are recognising that connected TV (CTV) is the ultimate device for OTT viewing - as are advertisers. 

Forecasts suggest there will be more than 40 million CTVs in Indian households by 2025; more than double what the current CTV penetration is today. Furthermore, CTV ad spend in India is also predicted to reach $395 million by 2027, up from $57 million last year, making India the third largest global market for CTV.

With advertising set to play an integral role in the continued growth of the Indian CTV market, it’s imperative that audience behaviours and attitudes towards advertising on this format are examined and taken into consideration.

At Samsung Ads India, we’ve endeavoured to understand this on both a global and market-specific level. We recently partnered with research company Verve to explore what drives Indian audiences to engage with advertising experiences across the TV landscape, and how this compares to other markets.

Our new global report, launched this week, found that ads on ad-funded and free streaming TV (FAST) services are more likely to be watched compared to linear or broadcast (BVOD) and subscription video on demand (SVOD) services - a finding consistent across India, Australia, Germany, and the UK.

Ads within FAST/AVOD environments were perceived by global audiences in the study as shorter and therefore less disruptive, contributing to their greater likelihood of being watched. 

When asked specifically about ad characteristics, such as trustworthiness and enjoyment, FAST/AVOD scored higher than cable, challenging some of the existing misconceptions advertisers might have around the perception of advertising within FAST and AVOD environments.

As with the other regions surveyed, the most significant factor driving Indian audiences to watch ads is if they receive free content in exchange. Four out of five (81%) Indians in the study said they’d be happy to watch ads if this was the case. Similarly, Indian audiences are very willing (80%) to watch ads that are relevant to them. In contrast, in other regions, respondents happy to watch relevant ads fell to an average of 72%. 

Positive attitudes towards FAST/AVOD by Indian audiences shouldn’t come as a surprise to those who know that India is an AVOD-first market. Disney+ Hotstar, which already has an-funded subscription tier, is the largest streaming app in India. Other local streaming services, like MX Player, Zee5, and AltBalaji also offer these types of ‘hybrid’ models. Our own FAST service, Samsung TV Plus, has also seen significant growth in India, thanks to these more positive attitudes towards advertising on CTV.

But that doesn’t mean it’s a home run for advertisers. These attitudes towards CTV advertising are hinged on the ads themselves being relevant and entertaining, reiterating the need to deliver premium ad experiences. 

With the benefit of insights, such as this report, advertisers and publishers can ensure they have a finger on the pulse when it comes to audiences attitudes towards CTV advertising, and better work towards delivering the best-in-class CTV experience to even more eager Indian streamers.