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The adoption of CTV and streaming in Latam

Written by Kivi | Apr 2, 2024 5:13:26 PM

In Latin America, we are witnessing a digital transformation that has redefined how we consume media content in the last decade.

In this scenario, streaming and CTV are undisputed protagonists and shape the entertainment habits of millions of people in the region.

We will explore the digital evolution of Latin America, from changes in entertainment consumption to emerging trends that are shaping the future of streaming.

CTV adoption in Latin America

Mexico leads the region in CTV consumption with a 67% reach in viewers followed by Argentina and Chile, both with 61%. These data underline the roots of streaming in the region and its central role in the current media landscape.

 

On the other hand, 64% of the population watches CTV content on Smart TV and 18% of homes have all four devices (Smart TV, video game console, decoder, streaming device).

Brazil, for its part, has 50% of the online population who define themselves as "CTV Watchers," and 63% of people watch CTV daily.

However, it is also about consumer preferences regarding streaming services and not only the mode of consumption on CTV.
 

A particularly interesting fact from the Comscore study reveals that more than half of CTV viewers would prefer an alternative that includes some ads in place opting for a subscription with a higher price.

The reach of streaming in Latam

In one of the latest analyses of the streaming market carried out by Comscore, Trends that redefine the landscape of CTV and streaming consumption, Several interesting data come to light to understand the current panorama of connected television and the impact of advertisements on audiences.

Comscore's study reveals fascinating trends in Latin American consumer behavior, highlighting the growing preference for advertising-supported video-on-demand (AVOD) services. Over 95% of households with connected televisions have consumed at least one AVOD service in the last month, evidencing solid demand in this segment.

Likewise, platforms such as YouTube position themselves as market leaders, with digital penetrations exceeding 90% in several countries in the region, according to data collected in November 2023. Podcasting continues as a growing trend in Latin America, as do short videos.

Most popular categories on CTV

With approximately 261 million subscribers worldwide, Netflix was the leading video streaming platform in 2023. Amazon Prime Video and Disney Plus came in second and third, respectively.

The most viewed content in Mexico was movies, series, and sports. Of the people who consume Connected TV, 94% watch movies 86% enjoy watching series, 50% of the CTV audience spend time watching sports, and 48% music.

Digital advertising investment on streaming platforms in LATAM

CTV advertising is undergoing a significant shift in the regional advertising landscape. Factors such as the penetration of devices connected to the Internet and the evolution of consumer habits have contributed to this growth.

The total estimated investment in digital advertising through these platforms amounts to 9 million USD, with a distribution highlighting each market's strategic importance. 

Brazil plans a 40.55% investment, becoming the most attractive platform market. Almost at par, Mexico with 39.83%, underlines its importance. A few steps behind, Argentina will receive 7.46% of the investment, while Colombia will have an investment of 7.18%.

 

 

This growth in advertising investment in Connected TV is due to several factors:

  • Increased penetration of Internet-connected devices, such as smart TVs.
  • Change in the consumption habits of viewers, who are increasingly more likely to watch streaming content.
  • Greater ability for advertisers to measure the return on investment (ROI) of their CTV campaigns.

For large advertisers, CTV is already an important part of their budgets. They allocate between 5% and 8% of their digital budget to CTV on average.

How do CTV ads impact audience behavior?

  • 25% comment with someone about what was advertised, and surprisingly, 20% of the audience buys the product after being impacted by a CTV campaign.
  • Most of the audience learns about a new product and searches online for information about what was advertised in the advertising.
  • Advertising is relevant to the audience when it is consistent with their interests or what they see at a certain time.

For advertisers, the distribution of the advertising budget on CTV represents a unique opportunity to connect with their target audience effectively. CTV's advertising formats allow broad segmentation and longer storytelling, which increases the effectiveness of advertising campaigns and improves the viewer experience.

Kivi offers several tools for measuring your campaigns. It is important to be on the screens and know the real performance of the advertising you show to the audience that discovers and watches your brand through Connected TV.