How the Open Internet is redefining premium advertising, latest news, india news, open internet, digital evolution

India’s digital landscape is undergoing a transformation, one that is not only reshaping how consumers interact with content but also providing marketers with unprecedented opportunities to engage with audiences. The rise of the open internet is perhaps one of the most significant trends in this evolving space, challenging the dominance of walled gardens like Facebook, Google, and YouTube. For marketers, the open internet offers a more dynamic, flexible, and precise avenue to connect with a large and engaged audience.

The open internet is defined as a collection of digital platforms, apps, websites, and media outlets that allow consumers to access free content supported by advertising. This includes over-the-top (OTT) streaming services, connected TV (CTV), music streaming platforms, online gaming, mobile apps, news outlets, and blogs. In India, this ecosystem has already captivated a staggering 640 million users, with that number expected to grow as the country’s internet penetration deepens.

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One of the most notable aspects of this shift is the rise of OTT/CTV platforms as the primary destination for premium content consumption. These platforms, which include services like Zee5, Voot, and JioTV, have become the go-to for younger audiences, particularly Gen Z and millennials. This age group, aged between 18-34, is increasingly favouring professionally produced content on OTT/CTV over social media platforms like YouTube. They trust the content more but also perceive the ads on OTT/CTV as more premium compared to those on other platforms. Research shows that younger users are 55% more likely to view brands that advertise on OTT as premium compared to YouTube advertisers.

Despite the high engagement levels on the open internet, there remains a glaring disconnect when it comes to ad spending. Indians spend 52% of their digital time on the open internet, yet only 15% of ad dollars are allocated there. This presents a massive opportunity for advertisers to better align their spending with consumer behaviour, particularly as ad spending trends in India are expected to follow in the footsteps of more mature markets like the U.S. In the U.S., walled gardens accounted for less than half of all digital ad spending by 2023, and a similar shift is anticipated in India.

The key to tapping into the open internet lies in understanding the changing digital habits of younger audiences. These users are spending more time on platforms like OTT/CTV and music streaming services and are actively engaged when using these platforms. Unlike social media, where users tend to passively scroll through auto-generated feeds, on the open internet, they are in “lean in” mode, actively seeking out content, shopping, or interacting with media. This heightened level of engagement makes them more receptive to ads, and brands have a unique opportunity to capitalize on this attention.

Online gaming is another hotspot for young adults, with 7 in 10 younger Indians expecting to spend more time playing games in the future. Not only do gaming platforms offer a highly engaging environment, but they also generate the highest ad recall among younger users. A quarter of young adults remember ads from online gaming platforms, compared to just one-sixth who recall ads on YouTube. This highlights the potential of gaming as a powerful advertising channel for brands looking to make a lasting impression.

Music streaming platforms, such as Spotify, Wynk Music, and JioSaavn, have also emerged as trusted environments for advertising. Younger users are 41% more likely to find ads on music streaming platforms less intrusive compared to older adults, making these platforms a valuable space for brands to engage with a younger, more receptive audience.

In this new landscape, trust is a critical factor in advertising success. The open internet, particularly OTT/CTV, has emerged as the most trustworthy digital channel among young adults in India. They are 16% more likely to trust ads on OTT/CTV compared to social media platforms, and 43% of them find ads on these platforms trustworthy. This trust extends to music streaming platforms, which also score higher in ad trustworthiness compared to social media.

For marketers, the implications of these findings are clear: to reach and engage younger audiences effectively, it is essential to meet them where they are spending their time and attention. The open internet, with its diverse range of platforms and channels, offers a premium environment for brands to connect with these highly engaged users. From OTT/CTV and music streaming to online gaming and news websites, the open internet provides marketers with a powerful tool to drive deeper engagement, build trust, and foster brand loyalty.

The open internet also offers greater precision and transparency in advertising compared to walled gardens. Brands can use their own first-party data to target audiences more precisely, ensuring that ads are not only seen but resonate with the intended audience. Unlike walled gardens, which offer limited insight into campaign performance, the open internet allows advertisers to gain a comprehensive understanding of consumer behavior across a wide range of channels. This transparency helps brands optimize their campaigns, making advertising efforts more efficient and effective.

As India’s digital consumption patterns continue to evolve, it is clear that the open internet will play an increasingly important role in the country’s advertising landscape. Marketers who embrace this shift and adjust their strategies accordingly will be well-positioned to capitalize on the immense opportunities that lie ahead. Whether it’s reaching younger audiences through OTT/CTV, engaging them through online gaming, or building trust through music streaming, the open internet is the new premium for advertisers looking to make a lasting impact in India’s dynamic digital ecosystem.

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