From Broadcast to Targeted: CTV is reshaping FMCG advertising

Authored by Arun Raghav, Founder of BE Global

Media consumption has changed significantly over the past five years, especially in FMCG advertising. People no longer rely solely on traditional advertising channels like TV. Today, a strong FMCG advertising strategy includes television, digital platforms, social media, audio, and outdoor advertising. The main goal remains simple: "delivering the right message to the right audience at the right time." However, achieving this is quite challenging.

For a long time, TV was the top choice for FMCG advertisers, consuming a large share of ad budgets. It was preferred for its massive reach, but it had limitations. TV ads had to appeal to a broad audience, making it difficult to track their direct impact on purchases. With digital technology, advertising has changed dramatically. Now, marketers can track campaign success, link ads to sales, and even enable direct purchases. Despite these advantages, TV remained attractive due to its wide reach and cost-effectiveness. However, things have started changing in recent years. 

Fewer households are using traditional cable TV. Since 2019, millions of homes have switched to Connected TV (CTV). In 2024, the CTV base has surpassed 40 million homes in India, accounting to 20% of total Indian households, as reported by BARC. While BARC data may not be recently updated, a recent report from TRAI indicates a decline of 3.28 million DTH subscribers in 2024. This clearly represents an audience that is tech-savvy, modern, and possesses high buying power, having shifted to CTV. Nielsen IQ’s report states that premium FMCG brands are growing at twice the rate of non-premium brands. The CTV audience is the right target for premium brands, as this audience pays a premium for quality content. 

The large audience that TV once provided is shrinking. Meanwhile, CTV aligns well with today’s digital advertising methods, allowing brands to collect data and improve targeting. People who still watch traditional TV exhibit varied viewing habits; some watch for long hours, while others tune in only for special events. This makes it harder to deliver ads effectively. At first glance, TV ads seem cheaper, but they come with hidden costs. Let’s explore these.

There are three major problems with traditional TV advertising:

• Viewability Waste: Many ads play in empty rooms, so brands must pay for extra exposure to reach actual viewers.
• Frequency Waste: Some viewers see the same ad too often, while others don’t see it enough.
• Audience Waste: Ads reach many people who aren’t interested in the product.

Because of these inefficiencies, the real cost of TV advertising is often much higher than it appears, sometimes three to four times more. CTV, on the other hand, reduces these issues by targeting the right audience more precisely. 

CTV is becoming the future of advertising, but it still doesn’t have the massive reach that traditional TV once had. To maximize the potential of CTV, FMCG brands need to focus on targeted advertising rather than simply reaching large audiences. While CTV ads may cost more per impression, they are more effective because they reach the right people at the right time. 

Additionally, CTV provides better data tracking and accountability, which is especially important as data privacy rules become stricter. This helps brands prove the impact of their ad spend, something that traditional TV and many social media platforms struggle to do. To achieve optimal results from CTV, FMCG marketers can utilize BEglobal’s rich media solutions, which are designed to connect, interact, and transact with highly targeted audiences.

The FMCG advertising world is changing rapidly. Traditional TV is losing its dominance, and CTV is emerging as a smarter, more targeted alternative. While TV still plays a role, its effectiveness is decreasing. CTV allows advertisers to reach the right people with measurable and impactful campaigns. Brands that embrace this shift will stay ahead in the evolving digital landscape.