Latin America. With technological advances and investments in media productions, streaming services have become a source of business expansion. Offering multiple ways for viewers to watch their favorite content, whether at home, at work, or even on the bus, Connected TV (CTV) is becoming increasingly popular in Latin America.
The expansion of CTV not only creates a new user profile, but also new opportunities for brands to deliver their message to viewers in a clear, contextualized and timely manner.
In Latin America, CTV has expanded significantly in recent years. According to a survey conducted by Comscore in collaboration with IAB Argentina, Chile, Colombia, Mexico, Peru and Uruguay, Connected TV reaches more than 150 million viewers, equivalent to 41% of the Latin American population.
CTV consumer behavior is relevant to the industry
Brands that intend to invest in CTV will be able to target young audiences, specific segments and control the amount of advertising that will be exposed to the viewer. This last issue, in fact, helps companies' expenses with advertising, by reducing costs.
In Latin America, Brazil, Mexico and Argentina are the countries with the highest growth in CTV consumption. The Comscore survey also states that 97% of households have at least one smart TV, the device most used by viewers to access content.
"With the rise of young audiences on streaming platforms and the growing presence of smart TVs in homes, brands that invest in CTV have the opportunity to expand their ads to different types of audiences. As a result, they are able to reach a greater number and a greater diversity of viewers," says Gustavo Marra, Revenue Director of TVCoins, a video distribution platform that offers live content and AVOD (Advertising-Based Video on Demand) direct to the consumer.
Therefore, ads also offer opportunities to engage with the viewer, as they are likely to seek more information about the brand and product when presented with a relevant ad. According to a Comscore study, after seeing an ad, 32% of viewers learn about a new product, 31% search for the advertised product, 24% talk about the ad, 19% discuss the ad with someone else, and 15% buy the advertised product.
CTV creates monetization opportunities
With the growth of CTV, the monetization of the platform is a process of sustainable revenue generation through advertising. With Smart TVs, streaming and game consoles, brands have the opportunity to connect with potential consumers in a more effective way.
The efficiency of reach through advertising in the OTT environment is because most CTV ads align with content, which benefits your ad inventory, measurement tools and advanced analytics for additional optimization.
In addition, TVOD (Transactional video on demand) offers access to pay-per-view content; and BVOD (Broadcaster video on demand), a service provided by a broadcaster, usually sponsored by advertisers and free to viewers, can also be explored by brands.
"More and more companies see CTV as a way to capitalize through content, so they focus on audiences directly linked to the brand and also expand their marketing strategies. With the variety of monetization models for CTV, each company can explore the one that makes the most sense for their business," adds Gustavo Marra, from TVCoins.
With the increased use of Connected TV and well-positioned and contextualized ads, brands that invest in CTV will perform well in the advertising industry and an even greater demand from the Latino audience. Considering that the Qatar 2022 World Cup has contributed to the increase in sales of smart TVs and, as a consequence, favored the increase in the use of subscription and advertising applications; Both factors contribute to the increase in investments of advertising companies.
