There is a growing “unreachable” segment of the Latinx population that is skipping traditional broadcast TV and watching TV via linear-programmed OTT apps.
According to Nielsen’s Total Audience Report, 84% of Hispanic Americans consume their favorite content on connected TVs (CTV), more so than the total U.S. population (77%). Free ad-supported TV (FAST) services, made popular by the likes of Roku, Xumo and Pluto TV, are just one of the more popular internet-enabled TV viewing formats that offer premium content to consumers at no cost in exchange for them giving up the ability to skip ads. The result is unprecedented attention from previously unreachable audiences.
Additionally, FAST provides a plethora of content to a variety of consumers, with channels catering to specific tastes or types of content. With so much consumer choice on FAST, it’s critical that brands focus on the most relevant content to get in front of the growing and sought after Latinx audience, utilizing these newfound opportunities to impress their messaging.
Adapt advertising strategies for new realities
To reach Latinx consumers specifically, advertisers need to understand what matters to this group and identify their unique cultural differences. Strategies of the past that were once acceptable and seemingly easy to transact on traditional broadcast television, such as total market, are no longer a viable or acceptable solution to reach these diverse unreachables. As minorities tip toward becoming the majority, brands that haven’t adapted their advertising strategies yet will be forced to rethink how they connect with this highly complex and crucial demographic.
Again, this strategy needs to be juxtaposed against the booming FAST landscape, especially as younger, more digitally native generations get older. Latinx audiences are one of the segments leading the way in CTV household penetration and time spent consuming content on CTV. As consumption habits shift away from traditional linear TV and toward CTV, marketers will need to address this new reality if they want to stay relevant.
Representation matters, but authenticity is most important
Just as Latinx consumers choose to watch the right content for them, advertisers must choose the right content to run their campaigns against. They need to identify what content accurately represents and engages Latinx audiences, and then surround themselves with that content. In turn, brands can see a boost in brand favorability and ad recall among this consumer base for their campaigns. Despite the fandom around Latinx artists like Karol G or Farruko, not enough credit is given to music videos when making such considerations. This is likely because music videos were missing from mass reach mediums like TV for some time.
Music videos connect with audiences by infusing sound, sight and motion to allow them to see experiences that mirror their own. With the traditional lack of representation in mainstream media, this connection to music videos is particularly amplified among people of color. Even though this country is diverse, only 3.5% of leads and co-leads in the film industry feature Hispanic or Latinx actors, even though the demographic makes up 19% of the U.S. population, according to a study from the Annenberg Inclusion Initiative.
While increased on-screen representation is needed, it’s not enough; how Latinx people are represented matters as well. The “how” also includes the accurate portrayal of traditions, celebrations, language, dances and more. For example, many music videos by Hispanic artists are filmed in various parts of Latin America, so watching music videos can help a viewer reminisce, invoke pride or serve as an educational tool.
Meet Latinx consumers where they are
Marketers looking for endemic, in-culture, in-language premium video that delivers the hard-to-reach Latinx viewers who aren’t consuming traditional media are turning to emerging curated networks that feature authentic, culturally relevant content.
TVision data showed that most Hispanic Americans watch music videos on CTV, such as Vevo’s FAST channels, with family and friends — 81% of sessions are co-viewed by at least two people. In comparison, 52% of traditional linear TV’s total content is co-viewed by Hispanic Americans.
Latin music videos effectively draw in the Latinx community, so these numbers are not surprising. In fact, insights from Vevo’s recent Media Tracker survey show that 68% of Latinx consumers view music videos as the most culturally relevant entertainment genre — even more culturally relevant than sports (64%). This sentiment is even higher among younger Latinx audiences, who might not watch the traditional Hispanic TV networks.
Latinx-programmed FAST channels provide cultural connections in a way that traditional TV does not. With music videos making their comeback in the living room and the rising popularity of OTT apps, especially among younger, digitally native demographics, brands must take advantage of these new channels for advertising and meet Latinx consumers where they are enjoying their favorite content — CTV.