According to Luis Romero, EVP of Sales at Canela Media, several factors are driving the growth of AVOD in the U.S. Hispanic market:
-Large and Growing Population: Hispanics, numbering 64 million, are the largest ethnic group in the U.S., contributing 51% of the population’s growth from 2010 to 2020, according to the Census.
-Increased Penetration: Rapid growth in internet and smartphone usage has made streaming services more accessible, increasing AVOD usage among U.S. Hispanics from 17% in 2022 to 45% in 2023, based on Nielsen’s Digital TV Research.
-Preference for Streaming: 51% of Hispanics prefer streaming services over traditional TV, which appeals to just 16% of them, as stated in Nielsen’s National TV Panel in Q1 2023.
-Cultural Relevance: Hispanic viewers seek culturally relevant programming, which drives viewership and leads to higher engagement.
– High Engagement: Hispanics spend 49% of their media consumption time on connected TV (CTV), compared to 37% for the general population, according to Nielsen’s National TV Panel in Q1 2023.
-Demand for Free Content: Research by LG Ad Solutions revealed that 63% of consumers prefer free, ad-supported content over paid subscriptions, with many planning to switch to ad-supported services shortly.
HISPANIC AUDIENCES SHOW STRONG RECEPTION
While Romero acknowledges that streaming consumption is growing across all demographics, he highlights that U.S. Hispanic audiences have shown a particularly strong reception to AVOD platforms.
According to Nielsen, more than 50% of Hispanic viewership is now through streaming services, which is notably higher than the 36% for the general population. “U.S. Hispanics exhibit higher affinity and usage due to the culturally relevant content. 57% of Hispanics feel that the Spanish language has become more significant to them over the past five years, and 60% prefer content that reflects their identity group. Additionally, some AVOD platforms offer family-friendly content, making it more likely for Hispanic families to watch together,” he noted.
DIVERSE RANGE OF CONTENT PREFERENCES
U.S. Hispanic audiences have diverse content preferences on AVOD platforms. In the 2023 Hispanic Consumer Report, Nielsen reported that Hispanics particularly enjoy comedies, dramas, and crime thrillers, with comedies leading at 68%, followed by dramas at 63%, and crime thrillers at 59%.
“Telenovelas and other scripted content continue to be popular, but there is a noticeable shift towards reality TV and documentaries. For instance, Canela Media responded to the growing interest in reality shows by creating Secretos de Villanas, which has become a pop culture phenomenon, generating significant buzz in the entertainment industry and among audiences,” Romero commented.
Secretos de Villanas
He adds that sports programming, especially soccer and boxing, is also gaining traction. “Canela Deportes, our sports vertical, just experienced its best summer ever across our VOD with exclusive content, live channels, and our social platforms. We provide Latino sports fans with comprehensive news and coverage on everything that matters to them across our entire ecosystem,” he highlighted.
He mentioned that there is a growing demand among viewers for lifestyle content related to well-being, food, travel, beauty, and cultural traditions. Recently, Canela launched a brand-new daily lifestyle show, Café con Canela, which aims to inform, inspire, and entertain, featuring a fresh and positive tone from three Latinas with unique personalities: Luz Blanchet, Suly Castillo, and Natalia Valenzuela.
Romero also cited Variety’s Hispanic Streaming TV Report, which states that 71% of U.S. Hispanics actively seek out Latino-produced content, showing a strong preference for shows featuring Hispanic actors or storylines that resonate with their cultural background.
“For the past five years, Canela Media has been at the forefront of delivering culturally relevant video content to Hispanic audiences. We have not only worked diligently to acquire such content but have also developed original programming for viewers of all ages. This includes our vertical, Canela Music, which gives a platform to Latino artists who might otherwise lack the opportunity to shine,” he said.
While not providing specific figures for AVOD revenue from U.S. Hispanics, Romero indicated that “brands love our growth in the space, our engagement, and our advertiser-friendly audience. I can say that as the only AVOD pure player in the Hispanic market, we have experienced substantial growth and interest from advertisers who want to work with us.”
INTENSE COMPETITION
Romero mentioned that one challenge is the intense competition within the streaming market, which requires platforms to continuously innovate to capture and retain Hispanic viewers’ attention.
“Another challenge, or perhaps more of an opportunity, is the need to develop culturally relevant content that resonates with Hispanic viewers, who have specific preferences and expectations. At Canela Media, we are committed to investing in technology, data solutions, and culturally relevant content to be the leader in this competitive landscape,” he stated.
Regarding strategies to increase and retain audiences, Romero noted that they include offering their existing and growing audiences a diversity of content, including more originals. “We also continuously work on improving the experience for audiences who watch us. This summer, we are relaunching our Canela.TV app with new features that will not only enhance our user experience but also have a significant impact on audience engagement and retention. One of the key additions is our Canela Rewards program, designed to create deeper engagement by providing our users with ways to accumulate points through their viewership and brand interactions to exchange for rewards,” he mentioned.
MEASUREMENTS
AVOD platforms measure the effectiveness of their advertising campaigns targeting the U.S. Hispanic market through a combination of data analytics, audience feedback, and performance metrics.
They use detailed data analytics to track viewer engagement, ad interactions, and conversion rates, allowing them to assess how well their ads resonate with the target audience.
Additionally, platforms gather audience feedback to understand viewer preferences and perceptions of the ads. Performance metrics such as click-through rates, view-through rates, and return on investment (ROI) are also analyzed to gauge the success of the campaigns.
“Canela Media is built on tech, and we are committed to delivering results to our advertisers, which is why we created Canela Audience Solutions, our exclusive and unique proprietary OTT-first data product that uses deterministic first-party data to deliver scale with accuracy and precision, reaching U.S. Hispanics across OTT. Additionally, we work with several measurement and verification partners like Nielsen One, UpWave, DoubleVerify, LiveRamp, MOAT, IAS, and many more,” Romero concluded.
