Last week, at Netflix’s upfront event, they announced several interesting things that got me thinking about the future of TV advertising in Latin America.
Netflix, one of the streaming giants, has taken huge strides in its advertising business. Its ad-supported plan now has 40 million monthly active users globally (considering that only 12 countries have this ad-integrated plan available), which represents an impressive increase from just 5 million a year ago. Moreover, more than 40% of new subscribers in markets with advertising are opting for this plan. This demonstrates the great potential and acceptance of advertising on streaming platforms.
Netflix is expanding its partnerships with programmatic partners such as The Trade Desk, Google’s Display & Video 360, and Magnite, which will allow advertisers to buy ad space more efficiently and with better targeting. They even plan to launch their own internal advertising platform to provide even more options for advertisers.
Although these advancements are not yet available in our region—in fact, in our continent, it’s only available in Mexico and the United States—I believe it’s just a matter of time before it becomes a reality, and we can access these audiences through global platforms like DV360. Transparency and the ability to measure campaign impact will be key aspects driving the adoption of streaming advertising in our region.
Netflix audiences have an attractive profile for advertisers: more than 70% watch content for over 10 hours a month, 15% more than the closest competitor, according to Nielsen. Furthermore, more than half watch content for over 20 hours a month. With a median age of 37 and higher household income, these audiences are highly desirable for brands.
Another relevant fact is that Netflix members are approximately twice as likely to respond to an ad on the platform compared to other streaming services and linear TV, according to EDO. This highlights the potential for engagement and effectiveness of advertising on Netflix.
Streaming content platforms have already won the content battle to traditional TV by a wide margin, what else do they need? Their advertising business. The television industry is experiencing significant changes globally, and Latin America will be no exception. Although we don’t yet have advertising systems like the ones Netflix is implementing in our region, it’s only a matter of time before these innovations arrive and transform the way advertisers reach their audiences.
I’m not saying this will replace open TV advertising, which, despite its serious measurement and transparency issues, will continue to operate. However, I believe it will gradually take a piece of its investment when we want to reach highly engaged TV audiences with higher purchasing power and younger than traditional TV audiences. That’s the potential that advertising on platforms like Netflix will offer. Moreover, with measurement partners like Nielsen, EDO, and DoubleVerify, advertisers will be able to verify and quantify the real impact of their campaigns.
It’s exciting to think about how these changes in the TV industry will affect the advertising landscape in Latin America. As more streaming platforms adopt advertising models and expand into our region, advertisers will have new opportunities to reach their audiences more effectively and measurably.
Although it will take some time for these changes to fully materialize in Latin America, it’s important to be prepared and attentive to the opportunities that will arise. Streaming advertising promises to be more transparent, targeted, and effective than traditional methods. As advertisers and marketing professionals, we must be ready to take advantage of these new tools and adapt to the evolving television landscape.
The future of TV in Latin America is about to change, and digital advertising will be the protagonist of this transformation. Let’s stay on top of global innovations and prepare to incorporate them into our strategies when they reach our region. Streaming and digital advertising will open up a world of possibilities for us to connect with our audiences in more impactful, measurable, and, above all, transparent ways.
You can read all about what was announced at Netflix’s Upfront here: https://about.netflix.com/en/news/netflix-upfront-2024-the-year-of-growth-and-momentum
Stay hungry,
Jose Guzmán, an award-winning marketer with 15+ years’ experience, combines his passion for tech and innovation to drive revenue growth and market expansion. With a rich academic background and numerous honors in marketing, he’s deeply committed to continuous learning. In this blog, Jose shares the latest marketing trends, tips, and strategies, inspiring readers to #StayHungry for knowledge.
