Luis Romero, EVP of Sales at Canela Media: U.S. Hispanic audiences are particularly receptive to AVOD platforms
For Luis Romero, EVP of Sales at Canela Media, several factors are driving the growth of AVOD (Ad-Supported Video on Demand) in the U.S. Hispanic market:
– Large and Growing Population: With 64 million people, Hispanics are the largest ethnic group in the U.S., contributing 51% of population growth from 2010 to 2020, according to the Census.
– Increased Penetration: Growing internet and smartphone use has made streaming services more accessible, increasing AVOD adoption among U.S. Hispanics from 17% in 2022 to 45% in 2023, per Nielsen’s Digital TV Research.
– Preference for Streaming: 51% of Hispanics favor streaming services, compared to only 16% who prefer traditional TV (Nielsen National TV Panel, Q1-2023).
– Cultural Relevance: Hispanic viewers seek culturally relevant programming, leading to higher engagement.
– High Engagement: Hispanics spend 49% of their media time on connected TV (CTV), versus 37% for the general population (Nielsen, Q1-2023).
– Demand for Free Content: Research by LG Ad Solutions shows 63% of consumers prefer free, ad-supported content, with many planning to switch to ad-supported services.
While streaming is growing across demographics, Romero emphasizes that U.S. Hispanic audiences are particularly receptive to AVOD platforms.
According to Nielsen, over 50% of Hispanic viewership now occurs on streaming services, higher than the 36% for the general population. “This higher affinity stems from culturally relevant content. Additionally, 57% of Hispanics feel the Spanish language has grown in importance for them over the past five years, and 60% prefer content that reflects their identity group,” Romero explained. He also highlighted the appeal of family-friendly programming on AVOD platforms for Hispanic households.
Hispanic audiences have varied tastes in AVOD content. Nielsen’s 2023 Hispanic Consumer Report revealed that comedies are the most popular (68%), followed by dramas (63%) and crime thrillers (59%).
“Telenovelas remain popular, but there’s a growing interest in reality TV and documentaries. For example, Canela Media created Secretos de Villanas, which has become a cultural phenomenon,” Romero said.
Sports programming, especially soccer and boxing, is also gaining traction. Canela Deportes experienced its best summer yet with exclusive content and live channels.
Romero also noted a rising demand for lifestyle content on topics like well-being, food, travel, and beauty. Canela recently launched Café con Canela, a daily lifestyle show hosted by three Latinas—Luz Blanchet, Suly Castillo, and Natalia Valenzuela.
Variety’s Hispanic Streaming TV Report states that 71% of U.S. Hispanics actively seek Latino-produced content. “For five years, Canela Media has focused on delivering culturally relevant programming, from scripted shows to platforms like Canela Music, which highlights Latino artists,” Romero added.
Romero acknowledged the intense competition in the streaming market, requiring constant innovation to attract and retain Hispanic audiences.
Another challenge is developing culturally resonant content. “We’re committed to investing in technology, data solutions, and culturally relevant content to maintain leadership in this competitive landscape,” he said.
To enhance engagement and retention, Canela is relaunching its app with features like Canela Rewards, enabling viewers to earn points for watching and interacting with brands.
AVOD platforms assess campaign effectiveness through analytics, audience feedback, and performance metrics like click-through rates and ROI.
“Canela Media is tech-driven, which is why we created Canela Audience Solutions, our proprietary OTT-first data product that uses first-party data to reach U.S. Hispanics with precision. We also partner with measurement firms like Nielsen One, DoubleVerify, and others to deliver verified results,” Romero concluded.
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