Connected TV (CTV) advertising is fast becoming a major force in India’s digital media landscape, with ad spends witnessing a remarkable surge. As per the latest Deloitte-Motion Picture Association (MPA) report, CTV ad investments in India have skyrocketed from Rs 450 crore in 2022 to Rs 1,500 crore in 2024—more than tripling in just two years.

Currently accounting for about 1.5% of all digital advertising expenditures in the country, CTV is poised for even greater growth. The report suggests that its share could expand to 7–8% in the near future, riding on a robust 40% annual growth trajectory.

What’s Driving This Boom?

The growing adoption of smart TVs and widespread availability of affordable high-speed internet are fueling this transformation. CTV advertising refers to ads delivered through internet-connected televisions—smart TVs, dongles, and gaming consoles—and it’s catching the eye of marketers looking to tap into India’s increasingly digital-first audience.

One of the biggest draws of CTV is its ability to offer advanced targeting features. Unlike traditional television commercials, CTV ads leverage data on user behavior, preferences, and demographics, enabling brands to reach the right audience with greater precision and efficiency.

Some of the popular ad formats making waves in the CTV space include pause ads, pre-rolls, mid-rolls, click-to-WhatsApp units, and dynamic billboard placements. These formats are specifically designed to captivate users who are already highly engaged with on-screen content.

A Thriving Entertainment Ecosystem

The growth of CTV is part of a larger narrative—the rapid expansion of India’s film, television, and online curated content (OCC) industry. Together, these segments generated a combined revenue of Rs 1.1 lakh crore (approximately US$13.1 billion) in FY2024, marking an 18% increase since FY2019.

This growth comes in spite of past disruptions like COVID-19-induced lockdowns, theatre shutdowns, and production delays. The Indian market has shown resilience and adaptability, with streaming and traditional formats continuing to coexist rather than cannibalize one another.

Interestingly, while streaming platforms have disrupted television viewership in many global markets, India follows a different path. The Deloitte-MPA report points out that linear TV in India will likely continue to see modest growth, while OTT and digital content will complement rather than replace it—at least in the foreseeable future. Overall, the combined entertainment sector is expected to grow at a CAGR of 6–7% over the next three to four years.

The Bigger Economic Picture

In terms of economic impact, the entertainment industry’s contribution is significant. In FY2024, it generated a total gross output of Rs 5.14 lakh crore (US$61.2 billion), with direct output pegged at Rs 1.41 lakh crore (US$16.8 billion).

Television remains the heavyweight in this equation, contributing Rs 3.17 lakh crore in total output and Rs 87,012 crore in direct output. The film segment followed, generating Rs 1.21 lakh crore in gross output and Rs 33,292 crore directly. Though smaller in scale, the OCC segment added a notable Rs 74,756 crore to the gross output, with Rs 20,470 crore in direct contributions.

When looking at value addition, television again tops the chart with Rs 1.83 lakh crore in total value, of which Rs 51,360 crore is direct. Films contributed Rs 62,283 crore overall with Rs 11,869 crore coming directly, while OCC added Rs 32,203 crore in value, including Rs 1,205 crore direct.

Employment and Future Outlook

The industry not only brings in revenue but also creates jobs. In FY2024, the entertainment sector directly employed 8.2 lakh (820,000) people. When accounting for indirect and induced employment, the total number of jobs supported rises to 2.64 million.

Going Forward, the base-case projection suggests the industry could contribute an additional Rs 1.74 lakh crore (US$20.7 billion) to India’s gross output by FY2029, while generating 3.6 lakh (360,000) new jobs. On a high-growth path, these numbers could rise by 30–40%, highlighting the sector’s strong potential as both an economic and employment engine.