CTV advertising not only presents an opportunity to meet the public where they now stream video content, but it provides a tech-forward mainstay for advertisers to reach and mobilize underserved markets.
Despite representing nearly 19 percent of the U.S. population, Hispanic Americans are often left out of advertising initiatives. The Hispanic Marketing Council reports that only six percent of all ad spend is directed at Hispanic audiences, one of the fastest growing segments of the U.S. market.
Hispanic Americans have a purchasing power of $1.9 trillion, which represents 87 percent growth from 2010, per the University of Georgia, and reports show this number will reach $2.6 trillion by 2025. This indicates a significant opportunity for marketers to connect with Hispanic Americans, who often feel underrepresented in media.
Unlike traditional TV advertising, CTV advertising offers precise targeting, dynamic creative, delivery verification, and measurement solutions. This creates a unique and improved experience for both advertisers and consumers. With CTV, advertisers can create a more personalized and intentional connection with defined audience segments, and audiences can finally resonate with ads they’re being served.
The Rise and Appeal of CTV and the Fall of Cable
It’s official. July 2022 marked the first time ever that Americans watched more streaming TV than cable, per Nielsen. While monumental, this change in media consumption comes as no surprise — eMarketer projects that less than half of U.S. households will have a traditional paid TV subscription by the end of 2023.
Hispanic viewers spend more time on streaming than the general market. Of their total viewing time, 34 percent is spent on streaming, six percentage points higher than non-Hispanic White Americans. Hispanic Americans are 17 percent more likely to have CTV streaming apps than the general market, according to App Science.
Advertisers are shifting ad dollars to CTV to accommodate the shift from cable to streaming. In 2023, advertisers are projected to spend 26.6 percent more on CTV ads than they did in 2022 — totaling $23.9 billion, according to eMarketer.
The appeal of CTV advertising extends beyond the positive trend of CTV streamers. Marketers across all verticals recognize the opportunity to utilize CTV to deliver more personalized ads, improving campaign performance and delivering greater ROI.
Sabio, a leader in CTV advertising, leverages first-party, privacy-compliant mobile data to create custom audience segments that are reflective of a viewer’s interests and behaviors. Their ability to reach niche audiences is of particular importance considering the diversity and intersectional experiences within the Hispanic community.
“With our unique approach to audience segmentation, we enable advertisers to reach Hispanic audiences across generations. We can identify users who are Spanish-dominant, primarily bilingual, or English-dominant,” says Simon Wong, EVP of Sabio. “Beyond traditional demographics, we are able to identify consumers’ passions, interests, and life stage, such as parents looking for a new car or newly married couples.”
CTV Enables Representation in Media
While on-screen representation continues to entice Hispanic viewership, as reported by Nielsen, marketing efforts remain behind the curve. This gap represents a clear opportunity for advertisers to better align with these underserved audiences, and CTV offers a worthy medium for alignment.
Sabio, a minority-owned business, understands the value of engaging Hispanic and other underserved markets. As a company, their foundation is rooted in diversity and inclusion with the goal of accurately reaching minority audiences.
“As someone who grew up never seeing myself or diverse colleagues portrayed in mainstream entertainment or advertisements, I know how impactful it is to be represented,” says Aziz Rahimtoola, CEO of Sabio. “CTV advertising must be inclusive, not just culturally but of diverging viewpoints, to be effective.”
Sabio’s CTV platform is powered by sister company App Science’s proprietary household graph of 55 million validated households. Their technology leverages mobile data to create truly customized first-party audience segments, reaching multicultural audiences more effectively across diverse CTV and mobile inventory.
Advertisers can utilize Sabio’s award-winning, in-house creative team to add interactive elements and QR codes. Dynamic creative provides a unique and personalized ad experience for English and Spanish-speaking consumers. They can even add Spanish and English subtitles simultaneously for ideal inclusion across multiple languages.
Sabio’s advanced measurement and analytics give advertisers rich insights into campaign performance, validating their media investment and informing future initiatives.
Sabio Enables Connection with Underserved Markets
Where linear TV capabilities lack in attribution, CTV ads track engagement, such as video completion rate and viewability, leading to greater confidence.
By partnering with Sabio, advertisers can be confident that they are reaching the right audience, with the right message, at the right time. They respect and follow industry, cultural, and ethnic trends while ensuring advertisers reach their target audience more effectively with their end-to-end CTV solution.
To enhance your CTV advertising strategy, schedule a strategy call with Sabio today.
