Advanced Television

Study: Demand for AVoD increasing in LatAm

May 30, 2023

Magnite, the independent omnichannel sell-side advertising company, has published its 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 per cent 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 per cent 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, Vice President 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 the study include:

  • More ad-free streamers will likely shift to ad-supported environments; 71 per cent 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 per cent 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 per cent 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. Nearly all (96 per cent) of ad-supported streamers said that streaming TV is a good value as a source of entertainment and 94 per cent said that it offers better programming than traditional TV. Additionally, 83 per cent of this audience said that streaming TV is a ‘must-have’ in their household.

Categories: Advertising, Articles, Consumer Behaviour, Research, VOD

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