Hispanic Americans embrace CTV: 78% prefer streaming

LG Ad Solutions yesterday released a report titled The Inclusive Screen: Hispanic Americans, shedding light on the Connected TV (CTV) viewing habits and preferences of Hispanic Americans. The study, which surveyed over 1,400 US Hispanic CTV users, reveals a significant shift towards streaming platforms, with 78% of respondents preferring CTV to traditional television.

LG Ad Solutions, a player in CTV and cross-screen advertising, conducted this research to provide advertisers with valuable insights into connecting with Hispanic audiences while prioritizing user experience. The report comes at a time when Hispanic buying power is projected to surpass $2.5 trillion by 2026, representing more than 12% of the total buying power in the United States.

According to the study, Hispanic Americans are drawn to streaming platforms for several key reasons. 82% of respondents cited the ability to watch content at their own pace as a primary factor. Additionally, 69% appreciated the wider range of content options available on streaming services, while 62% found content discovery easier on these platforms.

Monica Longoria, Head of Marketing Insights at LG Ad Solutions, emphasized the importance of these findings for marketers. "Hispanic audiences are increasingly turning to streaming platforms, not just for the breadth of content, but for the personalized, on-demand experience CTV offers," Longoria stated. She added that brands prioritizing these preferences are well-positioned to forge stronger, more meaningful connections with Hispanic viewers.

The report delves into various aspects of Hispanic Americans' CTV usage, revealing several noteworthy trends:

1. Content Discovery: While 43% of Hispanic CTV users rely on recommendations from family and friends to find new content, a significant portion turn to technology-driven solutions. 37% of respondents use specific app home screens, and 33% utilize TV screen homepages as primary sources for content discovery.
2. Language Preferences: The study highlights the bilingual nature of Hispanic households' media consumption. Four out of five Hispanic households watch a mix of Spanish and English language TV networks. However, when it comes to TV and video content, 70% of Hispanic CTV users express a preference for English-language material.
3. Ad-Supported Streaming: There's a strong inclination towards ad-supported content among Hispanic CTV users. Nearly 69% of respondents prefer streaming free video content with advertisements rather than paying for ad-free subscriptions. This preference suggests an opportunity for advertisers to reach this audience through strategically placed ads on free streaming platforms.
4. Post-Ad Engagement: The report also provides insights into viewer behavior after exposure to streaming TV ads. 41% of Hispanic CTV users reported conducting online searches following an ad, while 40% visited the advertised brand's website. These statistics underscore the potential for CTV advertising to drive tangible actions and engagement among Hispanic viewers.
5. Representation in Advertising: The study highlights the importance of diversity and inclusivity in advertising content. 64% of Hispanic American CTV viewers reported paying more attention to ads that accurately portray diverse groups of people. This finding emphasizes the need for advertisers to create culturally relevant and representative content to effectively engage with Hispanic audiences.

The "Inclusive Screen" report is part of a larger initiative by LG Ad Solutions to explore the streaming behaviors of diverse audiences in the United States. This particular study focuses on Hispanic Americans, forming the second part of a three-part series that also examines the CTV preferences of Black and Asian American viewers.

LG Ad Solutions positions itself as a global leader in connected TV and cross-screen advertising. The company leverages LG's extensive experience in smart TV manufacturing and combines it with big TV audience data and Video AI technology. This approach aims to help brands reach unduplicated audiences across the fragmented streaming TV landscape, with a focus on optimal frequency.

The release of this report coincides with the growing recognition of the Hispanic market's economic influence in the United States. With Hispanic buying power expected to represent over 12% of the total U.S. buying power by 2026, marketers are increasingly seeking ways to engage this influential demographic effectively.

For advertisers and marketers looking to tap into the Hispanic CTV market, the report offers several key takeaways:

• The prevalence of CTV usage among Hispanic Americans (94% have access to CTVs) suggests that these platforms are strategic channels for reaching Hispanic viewers.
• While 69% of Hispanic CTV users prefer English TV content, 51% pay more attention to ads in Spanish. This insight can inform language strategies for both content creators and advertisers.
• The strong preference for diverse and representative content underscores the importance of creating advertising that reflects the Hispanic American experience.

As the media landscape continues to evolve, studies like "The Inclusive Screen: Hispanic Americans" provide valuable insights for advertisers, content creators, and streaming platforms. By understanding the preferences and behaviors of Hispanic CTV users, industry stakeholders can develop more effective strategies to engage this growing and influential audience.

Key facts

• 78% of Hispanic Americans prefer streaming to traditional TV
• 82% cite watching at their own pace as a primary reason for preferring streaming
• 69% appreciate the wider range of content options on streaming platforms
• 62% find content discovery easier on streaming services
• 43% rely on family/friends for content recommendations
• 37% use app home screens for content discovery
• 33% utilize TV screen homepages to find new content
• 80% of Hispanic households watch a mix of Spanish and English language TV networks
• 70% prefer English content for TV and video
• 69% prefer free, ad-supported content over paid ad-free subscriptions
• 41% conduct online searches after seeing a streaming TV ad
• 40% visit a brand's website after viewing an ad
• 64% pay more attention to ads that accurately portray diverse groups
• Hispanic buying power is expected to exceed $2.5 trillion by 2026
• 94% of Hispanic Americans have access to CTVs
• 51% pay more attention to ads in Spanish