Magnite’s “CTV in LATAM: The Future Forward” study explores the evolving consumer attitudes and consumption trends around connected TV across Latin America
Magnite (Nasdaq: MGNI), the world’s largest independent omnichannel sell-side advertising platform, released its “CTV in LATAM: The Future Forward” report. The study of over 4,000 consumers across the region’s largest markets – Brazil, Argentina, and Mexico – identifies how audiences are consuming TV and explores the opportunity for marketers seeking to connect with engaged audiences as the shift to CTV accelerates and consumer behavior evolves.
Marketing Technology News: AnalyticsIQ Hires Marshall to Lead B2B Data Business Growth
CTV rivals the reach of broadcast
The results of the study show that there is widespread adoption of CTV streaming platforms across Brazil, Argentina, and Mexico. Across the three markets, 91% of respondents said they tune into streaming TV weekly. Mexico leads in this metric, with more than nine in ten (92%) Mexican respondents reporting that they used a streaming service at least once a week. Brazilian respondents followed closely behind in weekly streaming consumption (91%) followed by Argentinian respondents (81%).
Demonstrating consumers’ preference for streaming, 85% of viewers said they preferred streaming over broadcast TV, and 80% would keep streaming over broadcast if they had to choose. In all three countries, respondents spent a majority of their time watching streaming TV over linear TV. In Mexico respondents spent 65% of their TV viewing time on streaming. Brazilians and Argentinian respondents reported 63% and 58% of their TV viewing time was spent streaming, respectively.
“Although CTV advertising is still in its early stages in Latin America, the findings in our research study suggest there are huge opportunities to be uncovered in this newer format,” said Rafael Pallarés, Head of LATAM at Magnite. “The clear preference for streaming over broadcast coupled with consumers’ receptivity towards ad-supported models should signal confidence in future growth of ad-supported CTV for both streaming publishers as well as advertisers.”
Streaming audiences are more engaged and open to advertising
Viewers streaming content are far more attentive to programming than when watching broadcast shows, leading to higher engagement with advertising. The survey found that 79% of respondents stated they were receptive to advertising on CTV and willing to watch ads in exchange for free or reduced-cost programming. Those surveyed also enjoy discovering new products from ads in streaming shows and will consider brand or product ads in their favorite shows, with 52% taking an action, such as searching for the product online or buying the advertised product, after exposure.
Marketing Technology News: MNI Targeted Media Introduces Proprietary Bookazine Cover Wrap Ad Format
Additional key findings from the study include:
- In all three countries, the amount that people are willing to pay for streaming TV is still greater than the amount they are currently paying, indicating there is room to layer on additional services. In Argentina, the average consumers pay is US$6 per month, while the maximum amount they are willing to pay is US$10. In Brazil, the average amount paid is US$15 per month, while the maximum is US$20; and in Mexico, consumers spend an average of US$18 per month, but are willing to spend up to US$26. A majority (71%) of consumers stated that they plan to subscribe to another service.
- While LATAM consumers have not yet reached their subscription limits, they still want to maximize access to streaming content within their budget. A majority of respondents (74%) would prefer to watch free or reduced cost ad-supported content and 83% said they wish there were more free streaming video services.
- Among those who prefer to view internationally produced content, 80% report a desire to learn about different cultures, and 62% want to improve their foreign language skills. Across the region, international content is watched more than locally produced content, but 60% of respondents said they want more locally produced content.
Marketing Technology News: SpotX Expands Privacy-Compliant Audience Data Technology for CTV