Latin Americans consolidate CTV consumption over traditional TV

LATAM CTV Report 2022 shows that ads on free-to-air platforms’ consumption and attention rates already exceed those of traditional TV.

Mexico City, November 2022 - mediasmart, the omnichannel platform for programmatic advertising, together with Logan, a mobile technology and big data company for agencies and enterprises, and eMarketer | Insider Intelligence, a subscription-based market research company that provides insights and trends related to digital marketing, media, and commerce, launch an unprecedented study on the exponential evolution of CTV and user preferences in this device, across Latin America.

LATAM CTV Report 2022 compiles market trends data as well as data from a primary research conducted along with Logan in June 2022, across an opt-in CTV user base from Logan; one of the biggest in the region.

According to the LATAM CTV Report 2022 an average of 84% of Latin Americans preferred CTV compared to traditional TV, this preference is driven by the exponential growth of Connected TV penetration in recent years and also by the increasing offer of services, either through subscription or freemium type of subscription-supported by ads.

"Connected TV is transforming the way we consume content, people have started using their TVs as an all-in-one device and the definition of TV will continue to expand and change the perception of content viewing with the emergence of new addressable platforms that will strengthen the overall position of the streaming industry," said Juan Carlos Göldy, CEO of Logan.

“As expected, usage correlated with higher income in countries like Brazil, but the availability of cheaper CTVs and internet plans has also fueled growth among its middle and lower economic classes,” commented Matteo Ceurvels, senior analyst for Latin America and Spain at eMarketer | Insider Intelligence. “While CTV data is more limited for other countries, it stands to reason that similar trends would be found elsewhere in Latin America.”

Another important fact that the LATAM CTV Report 2022 shows is that, on average, 59% of users in Latin America indicated that they mainly watch ad-supported platforms like Vix TV, Pluto TV, and others. And it is these same platforms that hold a 36% higher rate than traditional TV in the attention devoted to advertising when buying a product, especially in Brazil, where this figure reached 88.9%—the highest in the region.

"CTV is still in a growth curve, but it is clear the increase in consumption by users and also in advertising investment, consolidating more and more the power of this device,” said Taísa Pereira, Regional Director at Mediasmart LATAM. “This growth challenges the market to discuss the best ways to measure it and which are the best models for CTV attribution in campaigns. The report shows that this is the moment to create branding and performance strategies fully integrated with the online and offline world, adapting the planning according to the users' real behavior.”