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 traditional traditional TV, with 74% of LATAM Over-the-Top (OTT) 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 is attracting a growing number of viewers? And (e.g., Pluto TV, Tubi, Samsung TV Plus, Sling TV). 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 2 THE OPPORTUNITY Streaming Rivals the Reach of Usage by Country Any Streaming Weekly Traditional TV 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 3 THE 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% 76% 87% 89% 85% Argentina Brazil Mexico prefer CTV over traditional TV 80% Pay full attention to the show If they could only keep one service, 63% would keep streaming vs. 80% 20% for traditional TV
Confidential | @ Magnite 2021 4 THE 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 about different my foreign on streaming services to spend 80% cultures” 62% language skills” ARS 549 ($6) ARS 926 ($10) Locally Produced % of TV Content Viewed Argentina International Content
BRL 86 ($15) BRL 115 ($20) 65% 67% 64% 64% Brazil
MXN 363 ($18) MXN 533 ($26) 35% 33% 36% 36% 60% Mexico want more locally produced content plan to subscribe Average 71% to another service Argentina Brazil Mexico
Confidential | @ Magnite 2021 5 THE 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%
77% 68% 74% 26% 83% 83% Interests/hobbies 78% Prefer to watch Prefer to pay Wish there Average free or reduced for ad-free were more free Argentina 75% cost ad-supported content streaming video 68% Brazil content services 80% Mexico Search history 75%
Confidential | @ Magnite 2021 6 THE 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.
79% 73% Argentina 52% 45% Argentina 78% Brazil 52% Brazil of all respondents indicated of all respondents took that they are receptive to some kind of action: 84% Mexico 58% Mexico CTV advertising: { { 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 7 Key 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 [email protected]. 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 8