The practice of cutting cords is more common. All viewers are shifting to streaming media. Hispanics in America are more likely to have at least one subscription to video-on-demand than the rest of the population. This is why OTT (over-the-top) advertising offers a unique opportunity for brands and advertisers to expand their reach and make lasting connections with Hispanic audiences.
Unsurprisingly, streaming has become a hugely popular topic among Hispanics. There have been numerous streaming platforms that are specifically aimed at this group. We launched the first advertising-based video-on-demand (AVOD) streaming service for U.S. Hispanics. Univision’s PrendeTV platform, which is ad-supported, was also launched earlier in the year. PlutoTV has expanded its Latino-focused offerings and rebranded the category Pluto TV en Espanol.
70% said they watched more movies and shows on streaming services during the pandemic. My company saw this firsthand. Many viewers watch a series of novels (typically about 180 episodes) in one week. While advertisers were cutting back on budget cuts, I noticed that multicultural marketing was often the first to go or significantly reduced. This has resulted in many brands being at a severe disadvantage as those who could maintain their Hispanic outreach are naturally better positioned about brand loyalty and awareness. Because advertising activity is now approaching pre-pandemic levels, I can see that many brands have to catch up.
For decades, the media have reported that Hispanics are a vast and growing demographic with trillions of USD in buying power. As per the latest census, they are also responsible for most of the U.S.’s population growth. Brands are naturally interested in this audience and will invest in platforms that promise it. However, marketers may lose more viewers than they convert if this is not done correctly. This is how it works: While these streaming platforms make it easier to reach Hispanic audiences via marketing, they don’t remove the need for relevant and culturally sensitive advertising.
It is essential to ensure that your advertising platform has a content collection that appeals to Hispanics of any background, regardless of whether they are first-generation Mexican Americans living in Texas or Venezuelan-born immigrants. The best media includes films and classics from Latin America, which can help instill a sense of nostalgia among Americans living here. Family-friendly content is something that everyone can enjoy. Engaged viewers will be more loyal and spend more time on the platform, which can lead to more opportunities for advertisers.
To develop an effective Hispanic OTT strategy for advertisers, it is essential to reflect on the brand’s different audiences. McDonald’s has successfully attracted Hispanic customers by using advertising that highlights experiences that Latinos relate to, such as a favorite character from childhood or the joy of seeing your family arrive on your first day of work. Hispanics are primarily young in the U.S., at an average of 29 years old. This means that your brand can reach them early enough to make them loyal customers for the rest of their lives.
Marketers must look beyond allocating a certain percentage of their OTT budget for multicultural audiences. Instead, they should examine the content being shared by their brand and make sure their brand is aligned with it. Also, it is a great strategy to develop original content partnerships and streaming providers.
However, building a Hispanic OTT strategy involves identifying platforms that you should advertise on and what creative content will be most popular with different audiences. It would help to consider your brand’s unique proposition to these audiences and perhaps even restructure your entire advertising strategy. Matt Ryan, CEO at Roth Ryan Hayes, says that there has been a shift in recent years from multicultural agencies being “relegated” to “distributing the core message in relevant manners” to having them actively participate with other agencies “in the origination the core messaging strategies.”
This approach to OTT can help brands develop a more sophisticated strategy that appeals to Latino viewers while also staying true to their core values. It will also make their outreach feel authentic. Latinos are looking for relevant content, and this desire extends to advertising. Marketers must step up and think about what platforms, programming, delivery, and brand offerings they can offer the Hispanic community.