New Delhi: Despite 600 million Indian consumers spending half their digital time on the open internet, marketers still allocate 5.5 times more of their advertising budgets to paid content, according to a report by The Trade Desk and Kantar.
The report, which analyzes the digital behavior of consumers in India and across Asia, suggests that although open internet users outnumber those reaching walled gardens, paid content is most effective at capturing consumer attention .
According to the report, consumers with access to walled gardens are 33% more likely to engage with ads on premium OTT and CTV platforms compared to open platforms such as YouTube. This group is also 22% more likely to recall ads on closed platforms. The report estimates that India’s OTT/CTV market will grow from $3.76 billion in 2023 to $5.51 billion in 2027, at a compound annual growth rate of 10.1%. A walled garden occurs when a user signs up or logs into an app to view content. This includes the discontinued services of Google, Facebook and Youtube.
The report states that with the decline of linear TVs, 65% of consumers prefer CTV over its linear counterpart, and nearly 80% of linear TV users plan to switch to CTV within the next year. Linear TV programming is when consumers watch predetermined or scheduled shows, unlike OTT platforms where they choose what to watch.
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