200 Million and Growing
Latin America’s CTV audience grew by 34%; average viewer subscribes to 8 different streaming services, says new report from Comscore
Miami, Fla., Oct. 31, 2023 (GLOBE NEWSWIRE) -- Latin Americans subscribe to an average of eight streaming services, according to a new survey conducted by Comscore, with sponsorship from Siprocal. The report focuses on the connected TV (CTV) landscape in seven Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, Peru and Uruguay.
Of the subscriptions, a little more than half are to paid services (subscription-based video on demand, SVOD), while a little less than half are subscriptions to free ad-supported services (ad-based video on demand, AVOD), and free ad-supported streaming services (FAST). The number of total subscriptions grew 72% compared with 2022 numbers. Free services were the highlight, jumping 125% in one year.
Despite CTV being considered a developing business with technological acceleration and significant investments in the sector, its user base is already quite substantial: 200 million in Latin America. The biggest numbers are those related to Brazil and Mexico: 66 million and 58 million, respectively. Compared to 2022 figures, there has been an increase of 34% in the number of users in the region.
The Connected TV category considers technologies that broadcast any video, movie or TV series through Smart TVs (TV with internet access), streaming devices (Roku, Apple TV, Chromecast, among others), set-top boxes (often part of internet providers’ offering) or video game consoles (PlayStation or Xbox). Among Latin American viewers, 94% consume CTV content through a Smart TV, 21% through a streaming device, 28% via a set-top box and 17% on a video game console. Households may consume content through more than one device.
Comscore also analyzed consumption formats and types of content sought. While in the whole region 35% of viewers want more content produced in their countries, that number jumps to 40% among Brazilian and Mexican audiences. This desire is also more common among those under 35 years old, with 37% expressing it. In addition, binge-watching - i.e., watching several episodes consecutively - remains one of the most common formats of content consumption among users, with 62% of viewers frequently engaging in it.
"The growth of Connected TV and streaming continues to impress those who follow this market closely," says Ivan Marchant, Sales VP for Mexico, Colombia, Peru and Central America at Comscore. He points out that "as the market matures, new trends are consolidating. We are already past the phase of discovering new platforms. We now see consumers with the power to choose, among several options, what is really most convenient for them. Advertisers are monitoring this shift, understanding and leveraging opportunities to impact their audience. There is still a lot of potential for advertising expansion in CTV".
Relationship between CTV advertising and new market opportunities
During the emergence of streaming services, the absence of advertising was an appealing factor for CTV viewers. However, with changes in business models, advertising has become more prevalent even on paid platforms. According to Comscore data, Latin American viewers tend to remember - in 61% of cases - having seen advertising before the show they watched on their Connected TV. Nevertheless, 72% of the respondents feel that there is less advertising on CTV than on traditional TV.
For 48% of the respondents, it is better to pay more to avoid ads than to have access to free or lower-price content with ads. On the other hand, younger audiences (from 18 until 24 years old) are the most demanding when it comes to watching ads: 46% expect advertising to be related to their interests/hobbies, and 40% believe it should be related to what they are watching. In the general population, these numbers are 41% and 35%, respectively.
Sam Berenato, General Manager of Streaming at Siprocal, stresses that variations in distribution and business models can have a direct impact on advertisers' strategies, but that the use of contextual data will be increasingly decisive in delivering targeted advertising according to users' tastes and preferences.
"The responsible use of data not only allows precise access to the audience of interest to the advertiser, but also favors other major differentiators of CTV, such as brand safety, transparency, and accuracy in analyzing campaign performance. Although a barrier to adoption of the format still needs to be overcome, as it is less known than others already consolidated in the market, CTV expects solid growth in the next five years, with increasing popularity, new technologies and, undoubtedly, more brands using the space to communicate with their consumers," says Berenato.
EDITOR’S NOTE: For any questions on CTV growth in Latin America or to schedule an interview with Sam Berenato, General Manager of Streaming at Siprocal, please contact André Bain, Vice President of Marketing at Siprocal, at +55 11 99102 8108
- or via email at andre@siprocal.com. Or contact Jim Minge, PR Liaison at Bozell (402-740-8188 and jminge@bozell.com).
About Siprocal
Siprocal is a next-gen platform that offers solutions for the distribution, monetization and engagement of games and applications. Siprocal uses direct audience access and insights from first-party data to promote new connections and conversions. Present across the Americas, Siprocal impacts hundreds of millions of individuals every month on their favorite channels, whether cell phones, Connected TVs, streaming services or gaming.
For more information, visit www.siprocal.com
About Comscore
Comscore (NASDAQ: SCOR) is a trusted partner for media planning, transaction and evaluation across all platforms. With data that combines intelligence from digital, linear TV, cinema and over-the-top (OTT) viewers with advanced audience insights, Comscore enables media buyers and sellers to quantify their multiscreen behavior and make business decisions with confidence. A proven leader in digital, television and advertising audience measurement on a large scale, Comscore is the industry's emerging third-party source for reliable and comprehensive multiplatform measurement. For more information about Comscore, please visit www.comscore.com
About the Comscore Connected TV Latam 2023 Study
This is the second annual edition of the region-wide study that provides the CTV and OTT industry with relevant insights on user behavior and preferences to inform more precise decision-making and optimize advertising investment on CTV and OTT platforms. This study was conducted by Comscore in partnership with IAB Argentina, Chile, Colombia, Mexico, Peru and Uruguay and with the support of the CIM Mexico. The study has Platinum sponsorship from Siprocal, Gold sponsorship from OMG, Pluto TV and Roku, and Main sponsorship from Canela Media, Kivi, Mercado Libre, Samsung Ads, Televisa Univision and Totalplay.
Attachments
