Magnite’s latest research study, “The Rise of Ad-Supported Streaming: An In-Depth Look at How Ads Are Powering Streaming TV in Latam,” found that 75% 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 Latin American market, the study finds that demand for ad-supported content is increasing. Among those who watch streaming TV, 83% 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, Magnite noted.
“Streaming is revolutionizing the way audiences consume television content globally, and we completed this study to better understand how this trend is taking shape in Latin America. It is 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,” said Rafael Pallarés, Vice President of Latin America at Magnite.
Magnite’s study also revealed that more ad-free streamers will likely shift to ad-supported environments. In fact, 71% of paid, ad-free Latin American streamers said they would use a new ad-based streaming service for a free or reduced cost.
Furthermore, the report assures that Latin American streaming TV viewers are cross-device consumers, and exposure to brands across multiple devices drives purchasing intent. According to Magnite, 88% of ad-supported streamers are more likely to make a purchase from a brand that they engaged with across multiple devices. At the same time, ad-supported viewers place a high level of trust in the ads they see: 83% of this audience in Latin America find the ads to be trustworthy within TV.
Meanwhile, Latin American audiences have a positive view on the value of streaming TV, as 96% of ad-supported streamers said that streaming TV is a good value as a source of entertainment, while 94% said that it offers better programming than traditional TV. Moreover, 83% of this audience said that streaming TV is a “must-have” in their household.
Magnite engaged Harris Interactive to execute an online survey of 4.991 respondents across Latin America: Argentina, Brazil, Colombia, and Mexico. The respondents are people ages 16-74 who watch more than seven hours of television a week with internet access in their homes. Fieldwork was completed from March 28 to April 12, 2023.