Nexxen International Ltd: Unlocking High-Conviction Growth in Emerging Markets Through CTV and Strategic Innovation

The global Connected TV (CTV) market is on a meteoric rise, with the Asia-Pacific region poised to dominate growth through 2030. According to Grand View Research, the CTV market size surged to USD 267.67 billion in 2024 and is projected to reach USD 530.90 billion by 2030, driven by 5G adoption, urbanization, and rising disposable incomes in markets like India and Indonesia. For investors seeking exposure to this transformative trend, Nexxen International Ltd (NEXN) emerges as a compelling case study. While the company has anchored its 2025 growth in North America through a strategic partnership with VIDAA, its financial resilience and AI-driven innovation position it to capitalize on emerging markets' untapped potential.

Strategic Partnerships and Financial Resilience: Nexxen's North American Catalyst

Nexxen's renewed partnership with VIDAA in Q3 2025 exemplifies its ability to leverage high-impact alliances. By injecting an additional $35 million into VIDAA-bringing total investment to $60 million-the company has secured exclusive access to ACR data and ad monetization rights in North America through 2029, as reported in a Tremor International release. This partnership is not merely a financial commitment but a strategic bet on CTV's future: VIDAA's North American expansion is expected to amplify Nexxen's data assets, which are critical for targeted advertising in an era where consumer attention is fragmented across platforms.

Financially, Nexxen has demonstrated robust performance. In Q2 2025, the company reported a record Contribution ex-TAC of $87.8 million and an Adjusted EBITDA margin of 34%, reflecting operational efficiency amid macroeconomic headwinds, as noted in a QuiverQuant report. These results underpin its full-year guidance of $380 million in Contribution ex-TAC and $125 million in Adjusted EBITDA, signaling confidence in sustaining growth. Such financial discipline is rare in the volatile ad tech sector and provides a buffer for future expansion. Historically, Nexxen's earnings beats have shown mixed short-term performance but a tendency to generate cumulative gains of ~10% by day 30 post-announcement, suggesting that the market may reward sustained outperformance over time, as shown in the Q4 2024 highlights.

AI and Data-Driven Innovation: A Foundation for Scalability

Nexxen's investment in generative AI and data licensing further strengthens its competitive edge. The launch of nexAI, a suite of AI-powered tools, has streamlined ad performance and user experience, while data licensing revenue is expected to grow significantly in 2025 (see Q4 2024 highlights). These innovations are not just incremental improvements-they are foundational to Nexxen's ability to scale in markets where data is the new currency. For instance, AI-driven ad personalization can unlock value in regions like Southeast Asia, where telecom operators are bundling smart TVs with fiber plans to accelerate adoption, according to a DataInsights report.

High-Conviction Opportunities in Asia-Pacific: The Next Frontier

While Nexxen's 2023–2025 disclosures focus on North America, the company's trajectory aligns with CTV's explosive growth in Asia-Pacific. By 2030, the region is forecasted to account for 4.2 billion CTV devices globally, with India and Indonesia leading adoption due to subsidized smart TVs and 5G infrastructure, according to BroadbandTVNews research. Nexxen's existing expertise in data monetization and AI could be replicated in these markets, particularly as local players seek global partners to navigate complex regulatory environments.

Consider India's case: A 5.1% rise in advertising spend in 2025 was directly linked to operator-bundled smart TVs, according to Mordor Intelligence. Nexxen's model-combining ACR data with AI-driven ad targeting-could resonate here, especially if the company partners with regional distributors or telecom providers. Though no India-specific initiatives were disclosed in 2023–2025, the company's Southeast Asia foray via Nexen Tire (a subsidiary) suggests a willingness to test new markets, as evidenced by a Tyre-Trends article.

Risks and Mitigants: A Balanced Perspective

Critics may argue that Nexxen's focus on North America could delay its entry into Asia-Pacific. However, the company's financial strength and strategic partnerships mitigate this risk. Its $20 million share repurchase program in September 2025, noted in a Nexxen press release, and a curated data marketplace launched in October 2025 in an SEC filing demonstrate fiscal prudence and innovation, both of which are critical for funding future expansions. Additionally, the CTV market's projected CAGR of 12.8% from 2025–2030 (per Grand View Research) ensures that Nexxen's North American success can serve as a blueprint for global replication.

Conclusion: A High-Conviction Play on CTV's Global Ascent

Nexxen International Ltd is not merely a participant in the CTV revolution-it is a strategic architect. Its North American expansion, bolstered by AI and data innovation, has created a scalable model that can be adapted to emerging markets. While India and Southeast Asia remain uncharted territories for the company, the CTV industry's trajectory in these regions offers a compelling case for long-term investment. For investors with a high-risk tolerance, Nexxen's current focus on financial discipline and technological leadership positions it as a prime candidate to capitalize on the next phase of CTV growth.