Exploring CTV (Connected TV) Advertising in Russia: Captivate the Connected Audience

Russia's internet penetration in 2024 remains high. On average, 80% of the population uses one or another device to access the World Wide Web, including for watching streaming TV and reading the online press.

Traditional television is losing its popularity, giving way to the Internet and social networks. By the end of 2023, the pay-TV market in Russia amounted to 106 billion rubles, the same as in 2022. The number of subscribers decreased by 0.1%, while the growth of CTV is about 35-40% annually. Connected TV (CTV) and OTT services are taking over, offering more interesting and flexible options compared to cable TV. They account for 79.7% of total media consumption in Russia.

Types of TV: CTV, OTT and Analog TV

Analog TV is the gold standard of television, offering a diverse range of programs on specific channels. To watch analog TV, you must use an antenna or pay for a cable or satellite TV connection. This type of TV doesn't require an Internet connection and works using traditional signal broadcasting technology.

Digital TV (OTT) and Connected TV (CTV) are two of the most popular ways of watching television and video. They are often confused with each other, but there is a clear distinction between them. Let's cut to the chase and understand the difference between Connected TV (CTV), digital TV (OTT), and analog TV. 

OTT (Over-the-Top) is a premium TV and video content streaming service, usually real-time or on-demand, offered by Internet service providers. Netflix, Hulu, and Amazon Prime Video are just a few examples of popular OTT services. In Russia, the most popular services are Kinopoisk, Ivi, Okko, YouTube TV, and MoreTV. They operate via the Internet, so you don't need traditional cable or satellite connections. We previously discussed their advertising capabilities and the specifics of their work (link). 

Connected TVs (CTVs) are TVs or devices that are connected to the Internet and allow users to watch streaming video through applications and services. These are smart TVs and TV set-top boxes (STB) that connect the TV to the Internet and allow access to streaming platforms such as Apple TV, Xiaomi, and Roku. Game consoles (Xbox, PlayStation) also stream games to large screens. 

These devices can be used to broadcast OTT content, but CTV and OTT are not the same thing. CTV is the platform through which various OTT services can be accessed.

What CTV is available for Russians?

Smart TVs accounted for over 85% of all TV sales last year. In the M.Video-Eldorado network, it has already exceeded 90%. Game console sales in 2023 also showed impressive growth, with each marketplace and specialized store selling more than 1 million devices. Currently, 24% of the population uses the TV to access the Internet, while 4.7% uses game consoles.

Russia has a wide range of connected TV platforms for consumers to choose from. 

For instance, TV sets with a Smart TV function from Rostelecom and Samsung are extremely popular. These devices allow you to watch traditional TV channels and use various streaming services. The Yandex TV Station is especially worth highlighting. This smart TV from Yandex is the ultimate multimedia station, offering a wide range of interesting movies and programs. For example, you can search for movies by voice and turn them on without a remote. This TV also controls your smart home via the Alice voice assistant.

Furthermore, there is a clear trend towards an increase in the number of users with smart devices. Russia has approximately 5.5 million active smart home devices, and this number is expected to grow. This creates a favorable audience for the connected TV (CTV) market. 

Sony, Xbox, Steam Deck, and Nintendo consoles are the most popular game consoles in Russia. Despite the limitations of some devices in payment, users have effective workarounds for purchasing devices.

Switching to Streaming: How Young People and Families are Changing TV Habits in Russia

At the beginning of 2024, 92% of Internet users in Russia watched TV every month, down 3.7% year-on-year. They spent 3 hours and 8 minutes watching TV every day, which is 1.9% more than a year ago. Of those, 82.7% watched streaming content, which took 1 hour and 2 minutes per day, up 7.6% from last year. Streaming accounted for a clear majority of total TV viewing time, at 33.1%.

CTV's audience is made up primarily of young adults aged 18-34 who actively use streaming services, as well as older age groups transitioning from traditional TV to CTV. Connected TV viewers also include families with children, urbanites, and professionals.

Users have the power to choose what and when they watch, whether that's by buying a subscription or watching content for free with ads. They binge-watch series and movies and actively use video streaming applications.

The data on TV and streaming content consumption in Russia confirms the trend that more and more users are favoring streaming, especially the younger generation and active Internet users. This reflects the clear shift from traditional television to more flexible and convenient ways of consuming video content via CTV. This has undoubtedly had an impact on advertising media buying. 

Advertising on CTV: 9 advantages over traditional TV advertising

Connected TV advertising is broadcast on internet-connected devices that can play video content. It offers distinct advantages over traditional TV advertising. 

With the tools available on CTV, you can target your audience precisely, engage them more deeply, and run highly interactive ad campaigns. These are just some of the advantages, but there are many more.

Let's take a closer look at the main ones and create a comparison table with the rest. 

Paid ads

Advertisers can use precise targeting based on viewability data and user preferences, and create personalized ad campaigns that will increase their effectiveness and reduce costs. Analytics and tracking technologies will help you identify target audiences and create relevant content.

Greater audience engagement

CTV audiences are far more engaged than traditional television audiences. Users choose what and when to watch, so they are more likely to be interested in content and advertising messages.

Millennials and Generation Z value comfort, quality, and unique content, and they still choose entertainment platforms. That's why streaming services are in high demand. This group of people is the largest audience in the world, so it is a certainty that they will not return to traditional cable TV.

Opportunities for interactive advertising

CTV's interactive advertising solutions drive engagement and conversions. Users can interact with ads in multiple ways, including clicking for more information, participating in surveys, or navigating to the advertiser's website. These interactions increase engagement and lead to higher conversions.

Follow us in social media