Hispanic CTV Advertising provides brands the positive audience features of linear TV (co-viewing, large screen engagement) and the targeting and interactivity of digital marketing. Hispanics are one of the highest growing cohorts in CTV adoption. What do advertisers need to take into account when it comes to target U.S. Hispanic consumers through CTV?
“CTV can be used as broad video impressions to replace or complement television or it can be a part of a digital campaign and have the same KPIs as that campaign. It can offer a deeper level of audience targeting vs. television and you can overlay interactive elements on an ad to create viewer interaction as well,” says Darcy Bowe, SVP, Media Director at Starcom USA, where she is involved with video media planning and buying for cients.
CTV can offer a deeper level of audience targeting vs. television and you can overlay interactive elements on an ad to create viewer interaction as well.
Nielsen’s recent Total Audience Report revealed that 17% of connected TV (CTV) device users in the U.S. are Hispanics. 52% of Hispanics watched CTV in Q3 2020, the second-highest cohort. Asian Americans, 54%, lead in CTV consumption followed by White Americans (49%) and Black Americans (46%). Reach of traditional TV among Hispanics is the second-lowest at 76%, after Asian Americans (65%). Hispanic CTV viewing increased 25% to 54 minutes a day in Q3 of 2020.
Hispanics over-index versus most other cohorts in CTV consumption and under-index in traditional TV consumption.
Opportunities for Brands
Where do opportunities for brand marketers lie when it comes to engage the U.S. Hispanic consumer through CTV?
Isabelle Rafferty, CEO & Founder Canela Media, notes that “the advertisers best positioned to engage Hispanics via CTV are the ones who recognize Hispanics as a social, cultural and economic force. Brands who understand this fact possess detailed knowledge of the diverse backgrounds, passion points and types of messaging that resonate best with Hispanic audiences. For example, McDonald’s has consistently used its Hispanic-focused advertising to showcase experiences and situations that resonate deeply with Hispanic viewers, which not only creates an emotional connection but also demonstrates how well the company understands the audience.”
“Interestingly, while cord-cutting has become increasingly prevalent amongst Hispanic audiences, there is still an incredible lack of Spanish-language news shows and current affairs programming available on streaming services. We set out to bridge that gap by launching Canela News, which gives Spanish-speaking cord-cutters access to the latest in current events, sports and weather,” Rafferty adds.
Hispanic CTV Advertising: QSR, Auto, Energy, Alcohol and Tech
For any brand looking to make a meaningful connection with Latinos, CTV/OTT is a must . Rafferty notes that on Canela.TV, “”we’ve seen the greatest growth in ad spend from QSR, Auto, Energy, Alcohol and Tech and look forward to helping other brands and verticals define their footprint with US Hispanics.”
Precisely for reaching a market as heterogenous as the Hispanic market, with its many language, country of origin and cultural nuances, Hispanic CTV Advertising provides targeting capabilities via a myriad of data triggers that can provide customized ads – by making a reference to cultural customs (e.g. food, music, sports etc.) – in order to make the ad experience much less standard than it usually is on linear TV.
We’ve seen the highest growth in ad spend from QSR, Auto, Energy, Alcohol and Tech.
Plus, brand recognition tends to be lower by multicultural consumers therefore increasing the potential for advertising campaigns. Nielsen’s latest Annual Auto Marketing report found that driving connections with the multicultural consumer is key to the automotive industry. According to the study, consumers from multicultural groups – Hispanic, Black and Asian Americans – are aware of 10-20% fewer car brands than the general U.S. population. The reports adds that “automotive brands are less top-of-mind for multicultural consumers, and there is an imperative for marketers to close that gap because most purchase decisions can be traced back to brands that consumers already have in mind before starting out on the path-to-purchase. Another category that over-indexes in terms of Hispanic consumer demand are telecommunications, consumer electronics, money transfer as well as certain parts of the grocery and retail sector.”
Canela.TV differs from most OTT offerings because it was truly one of the 1st AVOD streaming entertainment platforms built exclusively for Latinos by Latinos. With Canela.TV, Latinos are no longer an afterthought or “subsection” of a larger offering. “Our entire platform was build with diverse Hispanic audiences in mind, offering culturally relevant content from around the world in Spanish and English. We cater to the complex origins groups, tastes and language preferences of the modern Hispanic landscape in America,” Rafferty emphasizes.
About 50% of Canela TV’s viewership occurs on connected TVs.
Canela.TV has attracted a total of 3.2MM unique users in less than a year of being in-market, and is pacing to achieve over 8MM unique users by the end of 2021. Canela.TV is 100% over-the-top, and about 50% of its viewership occurs on connected TVs.Canela.TV uses audience data to enable brands to determine where they should be advertising, as well as the best way of establishing meaningful and in-depth relationships with U.S. Hispanics. “We also use audience data to figure out what types of content resonate most with our audiences, which in turn influences the programming that we decide to add to our library as well as the recommendations we offer to our advertisers,” CEO Rafferty adds.
Neccessary Ad-Tech Stack for Hispanic CTV Advertising
For its star product, Canela.TV, and its related Hispanic CTV Advertising, Canela Media uses SpringServe as video ad server and use Google Ad Manager for Display & Video solutions across their O&O properties. Canela Media’s ever-growing OLV (Pre-Roll & Outstream) Network we relies on SpotX and FreeWheel. Canela Media is also integrated withf DSPs and SSPs, like Beachfront, Conversant, district m, e-Planning, EMX Digital, Freewheel, Google, Gum Gum, Index Exchange, InMobi, Magnite DV+ (Rubicon/Teleria), Mobfox, MoPub, OpenX, Pubmatic, Pulsepoint, Roku, Sabio, Simpli.fi, Smaato, Smart AdServer, SpotX, SuperAwesome, TappX, The Trade Desk, TripleLift, Unruly (RhythmOne), Verizon Media, Zypmedia. Additionally, Canela Media is connected for header bidding via VAST and Ad Tags.