Q+A: How Samsung Ads Is Unlocking CTV Growth in LATAM

Magnite Team

June 3, 2024 | 6 min read

The way people watch TV is changing, and LATAM is no exception. Consumers are increasingly moving away from linear TV in favor of Connected TV (CTV). Viewers are also interested in free or reduced-cost ad-based streaming services.

According to Magnite’s research study, 83% of people in LATAM across Argentina, Brazil, Colombia, and Mexico who watch streaming TV are watching content with ads. Ad-supported viewers also place a high level of trust in the ads they see. In fact, 83% of this audience in LATAM find the ads to be trustworthy within TV.

We recently spoke to Essio Floridi, senior director of sales and operations at Samsung Ads LATAM, about the booming CTV market in the region, the challenges and opportunities for Samsung TV Plus, and how programmatic plays a crucial role in maximizing its potential. 

1. In what ways is CTV growing in LATAM?

As everywhere else in the world, there is a noticeable shift from linear TV to on-demand content and FAST services in LATAM as well. In the region, traditional TV and video have always played a crucial role in both entertainment and advertising. CTV and streaming have brought another perspective to TV as a medium, which is why it is experiencing significant growth in LATAM. 

The key factors for this growth are the increased internet penetration and the growing adoption of Smart TVs, the popularity of global and local streaming services, as well as FAST services that continue gaining traction, and advertisers recognizing the potential of CTV for targeted advertising.

2. What are the benefits of working with an SSP like Magnite as CTV evolves in LATAM?

At Samsung Ads, we sell both directly through our sales team via insertion orders (IOs) and programmatically. Working with an SSP offers several key benefits, the most important being the ability to scale our business and expose our inventory to a wide range of potential buyers—something that would be unthinkable without this technology.

By connecting Samsung Ads with multiple demand sources, we can enhance monetization and maximize revenue. The SSP also automates the ad buying process, reducing manual work, streamlining operations, and allowing for more efficient and scalable selling. This automation enables us to focus on the quality of our content and data, differentiating ourselves even more from our competitors and bringing benefits to our clients.

3. What are the biggest challenges Samsung TV Plus faces with CTV advertising?

Samsung TV Plus is the biggest free, ad-supported (FAST) service in the region, with more than 200 channels – and it keeps growing month after month – and great penetration and engagement with the audience. So, from an audience perspective, we are very well positioned, also taking advantage of the great market share our hardware business has in LATAM.

Talking about challenges they are all related to the natural pains of implementing a new business and offer, but among them, two are very specific for each one of our targeted audiences. One is related to the consumers and their experience with our platform, where we need to maintain growth while managing the ad load to ensure the overall user experience while consuming our service. The second one is to show advertisers the uniqueness and added value that curated, professionally produced content in a brand-safe environment can bring to their brands and campaigns. 

4. How does Samsung TV Plus use programmatic technology to benefit your clients?

This technology enables the delivery of highly targeted ads based on viewers’ demographic and behavioral data, ensuring that advertising messages reach the right audience, thereby increasing engagement and ROI.

The automation provided by programmatic technology simplifies the buying and selling of ad spaces, reducing the need for manual intervention and making the process faster and more efficient. 

Ultimately, the relevance of ads delivered through programmatic technology enhances the user experience by making ads less intrusive and more engaging, contributing to viewer satisfaction and retention.

5. Give an example of an advertiser you’ve worked with and how they’ve utilized your services and relationship with Magnite for maximum growth.

Our partnership with Magnite has been crucial in expanding our operations in Brazil and Mexico. Magnite covers the market, agencies, and brands we need for local growth. Recently, for example, we closed a deal with Bradesco through our Google partnership that was executed via Magnite as our SSP. This deal included selling video from Samsung TV Plus, all managed programmatically. This approach allows the industry to handle media operations with us according to their preferences, strengthening our collaboration and success.

6. How has the growth of FAST channels in LATAM contributed to the need for programmatic advertising in the region?

The growth of FAST channels in LATAM has significantly increased the demand for programmatic advertising in the region. As FAST channels gain popularity, they attract diverse audiences with varied viewing habits, which, in turn, calls for more precise and efficient ad targeting. Programmatic advertising meets this need by leveraging data-driven insights to deliver tailored ads to specific viewer segments, maximizing engagement and ROI for advertisers.

Besides that, programmatic technology’s scalability and automation streamline the ad-buying process, making it more cost-effective and accessible for advertisers looking to tap into the growing FAST channel viewership. The rise of FAST channels in the region will make programmatic advertising an essential tool for effectively reaching and engaging this expanding audience.

7. How will CTV evolve within your overall media planning strategy in the next few years?

CTV will play an increasingly pivotal role in the overall media planning strategy. As consumer behavior continues to shift towards digital and streaming platforms, CTV offers a unique opportunity to reach audiences in a more targeted and engaging manner.

One key aspect of the media buying strategy will be to leverage the insights from recent studies conducted by Samsung Ads, such as the Rule of 30, in Brazil. This study’s outcome emphasizes the importance of balancing reach and frequency in advertising campaigns, ensuring that ads are seen by a broad audience while also being relevant and impactful.

After balancing the media buying investments, professionals will focus on maximizing the capabilities of CTV for personalized advertising. By utilizing data-driven insights and advanced targeting options, we can deliver tailored ads to specific audience segments, increasing the effectiveness and efficiency of ad campaigns.

All in all, CTV will evolve to become a central component of the media planning strategy, offering unparalleled reach, targeting, and engagement capabilities that align with the evolving digital landscape.

Tags: CTV, FASTs, Publisher, Q+A

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