Streaming TV growth in Latin America driven by ad-supported viewing
Magnite, an independent omnichannel sell-side advertising company, has unveiled its latest research study, “The Rise of Ad-Supported Streaming: An In-Depth Look at How Ads Are Powering Streaming TV in LATAM.”
The research finds that 75% of internet-connected TV viewers across Argentina, Brazil, Colombia and Mexico watch ad-supported streaming TV, which includes television content streamed on any device.
As streaming reaches a new level of maturity in the LATAM market, the study finds that demand for ad-supported content is increasing. Among those who watch streaming TV, 83% are watching content with ads. Importantly, ad-supported streaming TV viewers are watching just as many hours of programming as ad-free viewers (15 hours) each week, showing that advertising does not negatively impact the viewers’ engagement.
“Streaming is revolutionising the way audiences consume television content globally and we completed this study to better understand how this trend is taking shape in Latin America,” said Rafael Pallarés, VP of LATAM at Magnite. “It’s clear from the results of our research that Latin Americans are embracing streaming TV. The overwhelming popularity of streaming TV and viewers’ acceptance of ad-supported models signal future growth of advertising in this format and more opportunities for both publishers and advertisers”.
Key findings from Magnite’s study include:
– More ad-free streamers will likely shift to ad-supported environments. 71% of paid, ad-free LATAM streamers said they would use a new ad-based streaming service for a free or reduced cost.
– LATAM streaming TV viewers are cross-device consumers and exposure to brands across multiple devices drives purchasing intent. 88% of ad-supported streamers are more likely to make a purchase from a brand that they engaged with across multiple devices.
– Ad-supported viewers place a high level of trust in the ads they see. 83% of this audience in LATAM find the ads to be trustworthy within TV.
– Audiences in LATAM have a positive view on the value of streaming TV. 96% of ad-supported streamers said that streaming TV is a good value as a source of entertainment and 94% said that it offers better programming than traditional TV. 83% of this audience said that streaming TV is a “must-have” in their household.
