VP of Magnite for Latam, Rafael Pallares talks about the gaps for programmatic advertising with the growth of connected TV
Latam Vice President of Magnite, a sell-side programmatic advertising platform, Rafael Pallares highlights that the main opportunity at the moment for the market is the space that streaming opens up for increased investment in advertising.
A proprietary study by Magnite, entitled The rise of ad-supported streaming 2023, shows that 83% of users in Latin America watch content with advertisements, while only 17% prefer to subscribe to an advertising-free streaming service. The rate in Brazil is similar: 81% prefer content with advertisements, with 38% watching streaming supported only by advertising and 43% using a mix of subscriptions. 19% have subscription services that do not display advertisements.
The programmatic market is growing across different channels, each of which has its own flow. The first channel to adopt programmatic was online display/video. This area has migrated a lot to programmatic. We’ve also seen strong growth in audio and, over the last two years, in digital out-of-home. The channel that is growing and adopting programmatic at the same rate is video streaming, says Pallares.
The executive highlights that the audience is increasingly migrating to streaming and there is accelerated growth in Brazil of streaming services with advertising models. It is worth remembering that Netflix recently announced the end of the basic ad-free plan, a measure seen by experts as a way of encouraging the plan with advertising.
The distribution of content via streaming is expanding a lot. The product gains escape velocity. This generates a very large adoption of the service, which creates an opportunity for brands to communicate with customers. It’s a challenge/opportunity to expand our presence in this space, he says.
According to the study, 45% of Brazilians are happy to see advertisements as a way to reduce the costs of streaming services. Furthermore, nine out of ten users trust the advertisements they see on connected TV. Overall, 73% of Brazilians watch content via streaming together with two or three people.
Read the full story in the November 27, 2023 edition
(Credit: Foto de Rodion Kutsaiev on Unsplash)
