CTV in LATAM: The Future Forward - How CTV delivers on the promise of TV for today's advertisers
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CTV in LATAM: The Future Forward How CTV delivers on the promise of TV for today’s advertisers A Magnite Proprietary Research Study
Connected TV (CTV) is the future of TV, providing
scale and reach at a level rivaling traditional TV. Definitions
The working, staying and playing at home that
Connected TV (CTV)
2020 unexpectedly brought about has accelerated A TV set that has built-in internet capabilities (e.g., Smart TV)
the adoption of streaming TV in Latin America. or is connected to the internet via a streaming device such as
a streaming box/stick, gaming console or Blu-ray player; all of which
can access a variety of long-form and short-form content.
Increasingly, viewers are turning away from
Over-the-Top (OTT)
traditional traditional TV, with 74% of LATAM
Video content that is delivered over an internet connection through
respondents that we surveyed streaming more now an app or connected video device (TV, PC, tablet, or smartphone).
than they did a year ago.
Ad-Supported Video-on-Demand (AVOD)
A free or low cost streaming service that gives users access
What is it about the streaming experience that to a variety of premium content in exchange for watching ads
(e.g., Pluto TV, Tubi, Samsung TV Plus, Sling TV).
is attracting a growing number of viewers? And
how can advertisers best take advantage of the Subscription Video-on-Demand (SVOD)
immense marketing opportunity at hand? A subscription-based streaming service that gives users access to a
wide range of premium, usually ad-free, video content for a monthly
or annual fee (e.g., Disney+, Netflix).
Magnite‘s ”CTV in LATAM: The Future Forward”
Traditional TV (aka Pay TV, Traditional TV)
research provides some answers to the important Broadcast, cable, satellite, telco, MSO or MVPD operators that
questions marketers are asking. distribute TV programming at a scheduled time.
Confidential | @ Magnite 2021 NOTE: All the averages contained in this report reflect weighted averages by country. Source: Video Ad Bureau 2THE OPPORTUNITY
Streaming
Rivals the
Reach of
Traditional TV
Any Streaming Weekly
Usage by Country
AVOD Weekly
Magnite’s research found
widespread adoption of Net
91%
streaming TV services (three countries)
63%
amongst the three largest
LATAM markets. 81%
AVOD usage is especially Argentina
33%
strong in Brazil.
91%
Brazil
80%
92%
Mexico
62%
Confidential | @ Magnite 2021 3THE ENGAGED VIEWER
Streaming Is Preferred Streaming Audiences
Over Traditional TV Are More Engaged
Respondents watching CTV are more attentive to the content Respondents watching streaming content
than those watching traditional TV. Higher attention levels are far more attentive to the programming
coupled with shorter ad pods and non-skippable ads can lead than traditional TV shows, leading to higher
to higher engagement with advertising as well. engagement with the advertising.
Always/Frequently: Streaming Traditional TV
Watch a show all 82%
the way through
in one sitting
68%
85% 76%
Argentina
87%
Brazil
89%
Mexico
prefer CTV
over traditional TV
80%
Pay full attention
to the show
If they could only keep one service, 63%
80% would keep streaming vs.
20% for traditional TV
Confidential | @ Magnite 2021 4THE VALUE OF CONTENT
International Content Prevails Willing to Spend More
Internationally produced content is watched more than content for Premium Content
produced locally. This is primarily a function of what‘s available to
watch. International programs provide a way to improve language In all three countries, the amount that people are
$
skills and learn more about other cultures, but there is a strong desire willing to pay for streaming is greater than the
for content that is more native to their own location and language. amount they are currently paying, indicating that
the budget has room for more services, up to a limit.
“I am interested “I am interested
in international in international
content to learn content to improve Average amount spent Maximum willing
80% about different
cultures” 62% my foreign
language skills”
on streaming services to spend
ARS 549 ($6) ARS 926 ($10)
Locally Produced
% of TV Content Viewed Argentina
International Content
67% BRL 86 ($15) BRL 115 ($20)
65% 64% 64% Brazil
36% 36% MXN 363 ($18) MXN 533 ($26)
60%
35% 33% Mexico
want more locally
Average
Argentina Brazil Mexico
produced content
71% plan to subscribe
to another service
Confidential | @ Magnite 2021 5THE ADVERTISING EXPERIENCE
The Advertising Relevant Advertising
Value Exchange Provides a Better Ad
Respondents have a hunger for content, but have a finite budget Experience for Consumers
they are willing to spend on streaming subscriptions. They will
watch advertising in exchange for low-cost access to premium Respondents understand the value exchange of advertising, but they
content. They understand the value of advertising in subsidizing also want a better ad experience. When asked about the types of ads
the costs of producing premium content, and making that that are acceptable within streaming content, respondents showed a
content available to them on AVOD platforms. clear preference for ads that are personalized around context, lifestyle
and even their search history. This preference for relevance means
that smaller brands can leverage the power of personalization within a
premium TV environment.
Respondents 81%
prefer ads 75%
86%
relevant to: The show 80%
74% 26% 83%
77%
68%
83%
Interests/hobbies 78%
Prefer to watch Prefer to pay Wish there
Average
free or reduced for ad-free were more free 75%
Argentina
cost ad-supported content streaming video 68%
Brazil 80%
content services Search history
Mexico 75%
Confidential | @ Magnite 2021 6THE ADVERTISING EXPERIENCE
High Level of Ad Receptivity Leads to Consumer Action
Linking Engagement to Ad Receptivity Behavioral Impact
Viewer engagement, fueled by preference and Advertising in CTV has the power to activate
attentiveness, translates to strong ad receptivity. viewer response both offline and online.
{ {
73% 45%
79% 52%
Argentina Argentina
78% Brazil 52% Brazil
of all respondents indicated of all respondents took
that they are receptive to
CTV advertising: 84% Mexico
some kind of action:
58% Mexico
Agree with two or more of the following: Always/frequently do one or more of the following after viewing CTV ads:
Open to watching ads on streaming TV because there are fewer of them Searched online for the products/services advertised
Open to watching ads to get access to high quality programming Recalled the ads later
Discovered new products from ads in streaming shows Discussed the ads with someone
Considered brand/product ads in favorite shows Bought advertised product or service
Confidential | @ Magnite 2021 7Key Takeaways
CTV Is Mainstream
With reach that rivals traditional TV, marketers need to include
CTV in their media strategy to reach coveted audiences they
are missing on traditional TV.
CTV Works Hard for Brands
Preference, attentiveness, and ad receptivity are helping
to drive behavioral outcomes.
Consumers Want a Personalized Advertising Experience
For more information or to see results by country,
Utilize first and third party datasets for more efficient CPMs please contact corpcomms@magnite.com.
against the campaign’s target audience.
Small Brands, Big Screen
Primetime is all the time in CTV, giving smaller brands an opportunity
to shine within premium, low-clutter TV programming.
Methodology: Magnite engaged Harris Interactive
→ Online survey among adults age 18-64 with home
internet access who watch 1+ hours of TV a week.
→ 4,049 Total Sample
> Argentina = 1,125
> Brazil = 1,648
> Mexico = 1,276
→ Fieldwork: 8 Jan 2021–21 Jan 2021
Confidential | @ Magnite 2021 8You can also read
