In this exclusive interview in the run-up to ATS Madrid 2023, Mariano De Luca, seller lead Italy, Spain, and MENA, Magnite, details evolving television consumption habits in Spain, including a shift towards ad-supported streaming.

How do attitudes towards ad-supported streaming in Spain compare to other European markets, as well as to those within North America?

While there are a lot of similarities between the Spanish streaming TV market, and the rest of the EU5 and North America, there are areas where the country has experienced its own unique evolution.  

Overall, Spain indexes higher than many other countries in terms of audiences who watch streaming TV, which is defined as TV content delivered via the internet to any screen. Eighty-four percent of Spanish viewers watch streaming TV compared to 81% in the US and 69% in France. 

Interestingly, older audiences in Spain are embracing streaming TV, more than some of their counterparts in Europe. Sixty-six percent of Spanish Boomers watch streaming TV compared to 45% in Germany and 41% in France. Equally, younger Spanish audiences are the most engaged of the EU5 markets, with 91% of Gen Z audiences streaming ad-supported TV.

Spanish streamers are also more likely to make a purchase after a brand engages with them across multiple formats than audiences from the rest of the EU5, making this a promising market for brands looking to grow their consumer base. 

What effect will the rise of consumption of streaming TV over traditional broadcast TV in Spain have on the advertising sector within the market?

Streaming TV is already watched by more people in Spain than any other form of television so advertisers need to increase their campaigns on streaming if they want to be able to reach audiences effectively. According to Barlovento Comunicació, Spaniards' daily minutes watching free-to-air TV dropped 11% in 2022 versus 2021.

This provides advertisers with a unique opportunity to reach new and engaged audiences. With the number of ad-supported viewers in Spain set for continued growth, brands will enjoy a wider variety of advertising opportunities as a result of these consumers’ deep engagement and cross-device consumption habits. Buying across streaming TV means wider access to inventory, more flexibility in planning and optimising campaigns, and the ability to target via audience-based buying. 

Additionally Magnite’s latest research shows Spanish streamers are streaming more TV with ads than last year, indicating that ads are not disrupting their viewing experience either. According to the study, 46% are watching more content with ads versus only 3% who are watching less.

What are the current barriers to entry for media buyers looking to diversify from traditional TV to streaming TV? What tools are available to help mitigate these?

One of the most significant barriers to media buyers is knowledge of what CTV actually is and how it can complement their traditional TV activity. The importance and effectiveness of CTV as a channel to reach an audience that is unreachable via linear TV is undeniable as the scales tip toward streaming TV being the most consumed format of television.

Measurement, reach and frequency across all TV buying are a significant hurdle in unlocking multi-channel advertising potential. 

As TV consumption shifts from linear to digital, the industry is reconfiguring how to plan, transact, and optimise premium video advertising across all screens. Measurement firms are investing heavily in technologies to help buyers and sellers solve for fragmentation. Streaming advertisers require flexibility and choice in the solutions at their disposal to facilitate the value exchange. 

Media buyers that are new to streaming may be wary of logistical challenges but leveraging programmatic can produce operational efficiencies by enabling advertisers to buy across various streaming services to achieve scale in a fragmented supply landscape. PMPs and other deal-driven activation options can simplify the buying process while also providing advertisers with transparency and control into where their campaign budgets are being spent.

Similarly, how can marketers capitalise on the opportunities offered by ad-supported streaming, for instance exposure to brands across multiple devices driving purchasing intent?

Brands and agencies recognise the importance of connecting with their customers more holistically across the various screens and media touch points they engage with throughout the day.  

In line with other EU5 markets, streamers in Spain are watching content across multiple screens: 95% watch TV and movies at home on TV screens, 75% watch on mobile, and 74% choose to watch on their laptop or desktop computer.

Our research found that consumption across devices drives deeper connections with brands and influences purchase decisions. 82% of ad-supported streamers in Spain are more likely to make a purchase from a brand that they engaged with across multiple devices (TV, mobile, desktop, etc.) versus 75% of traditional TV viewers.

Ad serving tools such as frequency capping are vital in driving cross-device campaign outcomes. Identity fragmentation across streaming, display, online video (OLV) and mobile makes it difficult for brands to effectively communicate parameters such as ad frequency across the supply chain. Difficult does not mean impossible and an SSP’s tight relationship with publishers results in the most accurate user identifiers in every request. To optimise cross-device campaigns, buyers should talk to their SSP about frequency capping and other identity-related ad delivery criteria.

ATS Madrid 2023 will be held on May 9th at Teatro Amaya. Tickets and further information are available via the dedicated ATS Madrid 2023 event portal.