In a constantly evolving landscape, CTV is expected to remain a key tool for brands and advertisers looking to connect with their audiences more directly and effectively by 2025.
Connected TV (CTV) has emerged as one of the most impactful platforms for digital content consumption and targeted advertising in Latin America. In a constantly evolving landscape, CTV is expected to remain a key tool for brands and advertisers looking to connect with their audiences more directly and effectively by 2025.
According to Comscore data, 59% of adults in Latin America already actively participate in the CTV ecosystem, spending an average of four hours a day watching content. This phenomenon is even more notable between 7:00 p.m. and midnight, a key time slot for brands looking to impact consumers at strategic moments.
Here are five key trends that will dominate the near future of CTV.
According to Statista, the global market for ad-based streaming services (AVOD) will reach US$38.4 billion by 2027. AVOD models, which offer free content with the inclusion of ads, and FAST channels (free channels with advertising), will be booming. The use of AVOD and FAST platforms is expected to grow by 37% in the coming years, with an increasing number of consumers opting for services that offer free content in exchange for relevant ads.
This trend promises to further strengthen the supply of entertainment options for users.
By 2025, 75% of CTV advertising interactions are expected to use artificial intelligence (AI). This technology will be key to optimizing the personalization of ad campaigns and improving ad effectiveness. According to McKinsey, the use of AI can generate an improvement of up to 20% in customer satisfaction. This will allow brands to create ads more tailored to user preferences, improving relevance and impact.
Commerce through interactive ads is projected to grow by 30% annually. According to IAB data, it is estimated that by 2025, around 70% of consumers will prefer to make purchases directly from their TV sets. This shift represents a significant opportunity for brands looking to capitalize on direct interaction with users during content consumption, transforming the connected TV experience into a more dynamic commercial space.
One of the big bets for 2025 is metrics standardization and attribution in CTV. According to AdExchanger, 85% of advertisers will prioritize standardized metrics, making it easier to compare results with other digital channels. This uniformity will allow advertisers to more accurately measure the impact of their campaigns and make decisions based on more reliable data.
Latin America is a key market for CTV's expansion. Brands that are able to adapt to these trends will be better positioned to build strong and relevant relationships with their audiences.
As CTV continues to evolve, the opportunities for advertisers and content creators will multiply, and brands that capitalize on these trends will stand out in an increasingly competitive digital environment.