The use of streaming services in Mexico has history, but it was the pandemic that triggered a significant surge in their adoption. Online entertainment served as a virtual window for Mexican consumers, who were confined to their homes at that time. Even as the pandemic waned, Mexican consumers have continued to embrace streaming, providing a steady audience for streaming providers.
According to the National Audiovisual Content Consumption Survey of the Federal Institute of Telecommunications (IFT), paid subscription services for online entertainment were not widespread before the pandemic (2019). Only 38% of those surveyed reported having such a service. However, by 2023, this figure had risen significantly to 50%, indicating a clear shift in consumer behavior.
ThinkNow recently conducted a nationally representative quantitative survey in Mexico with the aim of understanding the streaming services landscape in the region across ethnicity, gender, age, and socioeconomic levels. The survey provided valuable insights into category dynamics, including the rankings for popular services available to Mexican consumers and their subscription preferences.
Click here to download the report.
But first, let’s look at how Mexican consumers access online entertainment.
Mexican consumers are avid users of streaming services, averaging 3 hours daily watching movies, videos, or listening to music online. Smartphones and Smart TVs are the preferred devices for accessing streaming content. Studies suggest that streaming services have become indispensable to Mexican household budgets. Unlike in past trends, consumers now prioritize paying for these services with cash through debit cards or in person at convenience stores like OXXO. This shift highlights how streaming services have transformed from a luxury to a necessary monthly expense.
On average, Mexican consumers use three video and two audio streaming services. Over 70% of video streaming users subscribe to Netflix, followed closely by Disney+ and Amazon Prime Video. In the audio realm, Spotify remains the top choice. However, YouTube Music and Amazon Prime Music are popular music and podcast options. Interestingly, higher-income groups subscribe to more video streaming services than their lower-income counterparts. However, this trend doesn't apply to audio streaming services, suggesting wider accessibility across income levels.
Growing demand for features like broader content libraries and lower subscription fees should be top of mind for streaming services providers. A staggering half of respondents admitted canceling a service due to rising subscription costs. Cost increases, which have disproportionately impacted Millennials, coupled with perceived limited content selection (for audio and video), have motivated users to seek more convenient options that better balance price and content. The 2021 digital tax implementation forced some platforms, like Netflix, to raise prices, ultimately burdening users. With additional price hikes possible, consumer loyalty may be hard to find.
How much do Mexican consumers pay? An average of 457 Mexican pesos (US$27) for video and 274 (US$16) for audio streaming services. Loyalty to any of these platforms hinges primarily on the quality and variety of content offered. Younger generations (Gen Z and Millennials) are more willing to pay a premium for broader content selection. Boomers, not so much. Aside from the content offered, Mexican consumers consider what each streaming service offers before deciding which service to subscribe to. While cost is important, consumers also consider promotions and free trial lengths when choosing a streaming service.
Eight out of ten respondents reported being “very” or “somewhat” satisfied with their current video and audio streaming services, with Gen Z reporting the lowest satisfaction levels. Like brand loyalty, satisfaction hinges on consumers' ability to get a wider content selection at a more affordable price. To compensate, many users have turned to account sharing in the past to manage costs. However, as streaming services like Netflix and Spotify crack down on that, now charging for account sharing, the practice no longer gives users the relief they were looking for.
Mexican consumers demand more value – a wider variety of content at a lower cost. This presents a challenge for streaming services. Subscribers naturally want to keep their entertainment options, while platforms need to maintain profitable content libraries. Strategic partnerships between services may offer a solution, providing content diversity without breaking the bank.
Click here to download the report.
While popular demand-side platforms (DSPs) like Google DV360, Xandr, and The Trade Desk offer powerful tools for reaching vast target audiences programmatically, digital media buyers for Fortune 500 companies face a more profound challenge: effectively spending the massive budgets allocated to them, especially when it comes to reaching diverse audiences.
While diversity, equity, and inclusion seem to have fallen out of favor in some areas, DEI continues to thrive in others. Consumers are still very interested in engaging with brands that align with their values and show that support, or lack thereof, with their wallets. Future-focused brands see engaging with diverse audiences as a moral duty and sound business strategy for growth. However, achieving this in the digital realm can be difficult, particularly when traditional demographic targeting methods fall short.
That's where an inclusive perspective on programmatic advertising becomes essential. It's not just about casting a wider net but leveraging insights into cultural nuances, behavioral patterns, and consumer preferences to reach diverse audiences with content they want to see. Doing so eliminates the need to create fictitious audiences or use identifiers subject to restrictions, which are common tactics on DSPs today.
One key aspect to consider is the concept of zero-party data. Unlike third-party data, which can be unreliable and plagued with privacy concerns, consumers willingly provide zero-party data. It's the information they consciously share with brands because they see value in doing so. Since consumers are self-reporting across a range of classifications and categories, the insights can enrich programmatic strategies, improving campaign performance and ROI.
Most DSPs, however, lack native capabilities to offer zero-party data to programmatic advertisers. By partnering with third-party providers specializing in zero-party data solutions, digital media buyers can segment their audience based not just on traditional demographics but on cultural affinities, language preferences, and even heritage. This unprecedented granularity unlocks a wealth of insights that enable media buyers to reach diverse audiences more effectively.
Effective targeting is just one piece of the puzzle. Equally important is crafting messaging that resonates authentically with diverse audiences. This requires a deep understanding of cultural nuances and sensitivities and a commitment to representation and inclusivity in your creative approach. Achieving this demands C-level buy-in and a commitment to inclusion as a core pillar of the company's digital advertising strategy, positioning the brand to enhance its effectiveness in an increasingly multicultural marketplace.
In closing, big-picture thinking, ingenuity, and an inclusive perspective on programmatic advertising are value-adds to digital media buyers responsible for managing ad budgets for some of the world’s largest brands. Central to this approach is embracing the potential of zero-party data and forging partnerships with innovative third-party providers. Doing so opens doors to new avenues for engaging diverse audiences in a genuine and impactful manner.
This blog post was originally published on MediaPost.
Diversity isn't just about optics. Today’s consumers prioritize authenticity and base their purchase decisions on how brands show up. But authenticity does not start when the products hit the shelf. It must be woven into every stage of the go-to-market strategy, including market research – from panel recruitment and survey design to selecting moderators who foster open and honest conversations. Understanding diverse consumer perspectives requires more than just surface-level representation.
One crucial aspect of fostering authenticity in market research is the composition of research teams. Selecting moderators, for example, that reflect the demographics of the survey participants helps ensure authenticity in their responses. The psychological safety that the environment presents reduces the need for codeswitching, liberating respondents to be their authentic selves.
Beyond focus groups, greater diversity is needed across the market research industry. Often, diverse teammates doing the work—running the data tables and visualizing the data—aren’t the ones presenting the work, and that needs to change. There’s value in bringing those in the back of the house to the front to create equal opportunity for advancement.
By prioritizing inclusivity and authenticity internally, companies can forge deeper connections with consumers externally and drive meaningful change in the marketplace.
In this episode of The New Mainstream podcast, Kai Fuentes, President and CEO of Ebony Marketing Systems, discusses how the market research industry can benefit from intentionally cultivating and championing diversity and inclusion.
Understanding consumer trends and preferences through market research has always been important to marketers. But it's become a business imperative in today’s hyperconnected, competitive marketplace. While countries like Colombia, Dominican Republic, Peru, Chile, Ecuador, and Mexico have led the way in market research investment in Latin America, we must acknowledge the strides made in Central America, notably in Guatemala, Honduras, El Salvador, Costa Rica and Panama.
Well, several factors are at play. The widespread expansion of the internet has opened up a wealth of data on consumer behavior and market dynamics, now easily accessible with just a few clicks!
Furthermore, the growth of the middle class in the region has generated more sophisticated consumer demands. With a population whose tastes and preferences are constantly evolving, companies must stay up to date. Market research insights are the compass guiding their journey.
Finally, the reduction in extreme poverty in recent decades has been a significant factor. This change has increased consumption and attracted greater domestic and foreign investment, creating a virtuous cycle where economic expansion fuels the imperative for deeper insights.
Like any journey, navigating market research across LATAM has its share of bends and twists in the road. Access to representative samples of the online population remains an obstacle. Disparities in internet connectivity can skew research results, posing a hurdle to obtaining accurate insights.
As such, data quality is fundamental. With the vast amount of information available online, it is crucial to ensure that the data is reliable and accurate. After all, no one wants to make important decisions based on faulty information.
Additionally, there's an ongoing tug-of-war between traditional methods and online research. Convincing companies to embrace new technologies can be daunting, yet exploring all avenues is essential to paint a comprehensive picture of the market landscape.
First, find an experienced business partner with a track record of providing reliable and representative samples in Central America, like ThinkNow. In addition, instead of seeing online research and traditional methods as adversaries, inquire how both approaches can be integrated to attain a more comprehensive and precise understanding of the market.
Lastly, adopt a balanced approach. While the growth of market research in Central America presents exciting opportunities, sustaining this momentum and fostering its contribution to regional economic development requires addressing industry-wide challenges across LATAM. Collaboration between the public and private sectors is imperative to harness the potential of online research across the region.
References:
World Bank. "Central America: Investment and Economic Growth".
Latin American Institute of Market Research and Public Opinion (ILAM). "Report on the Growth of Market Research in Central America".
López, A. (2022). "The impact of the expansion of the Internet on market research in Latin America". Journal of Economic Studies, 15(2), 45-60.
Today's consumers are confidently embracing their authentic identities, and forward-thinking brands are following suit. Inclusive beauty giants like Ulta Beauty proudly defy gender norms, while others prominently feature same-sex couples and individuals with disabilities and promote body positivity in their advertising campaigns. On the flip side, some brands are succumbing to the fear of appearing overly “woke.” The increasing backlash against diversity, equity and inclusion has prompted a few to backtrack on commitments made during the peak of social unrest in 2020, leaving consumers feeling angered and confused.
Multicultural consumers, who represent almost 100% of the population growth in the U.S. and are on track to become the majority by 2050, seek genuine connections with brands. Central to this is a brand's ability to authentically understand its audience and allow that authenticity to drive consumer engagement.
Brands that bridge cultural divides are the ones that thrive. By genuinely connecting cross-culturally, companies seamlessly align DEI with their bottom line. Inclusivity isn't optional – it's the fuel for long-term success. From diverse workforces to inclusive marketing campaigns, a focus on inclusion strengthens every aspect of a brand.
Understanding multicultural consumers means appreciating their commitment to holistic well-being. Black women prioritize mental health, while Gen Z seeks a shift from the “grind” to self-care and mindful living. Brands that tap into these trends resonate with a broader audience.
In this episode of The New Mainstream podcast, Will Campbell, Co-founder and CEO of Quantasy, shares his perspective on the state of multicultural marketing and how young, diverse generations are driving wellness trends.
In the dynamic landscape of sports fandom, one demographic stands out for its potential to reshape the future: young bilingual Latino fans. These individuals bring a unique perspective to sports, craving innovative ways to express their passion for the game. But that passion goes beyond the field to the experience, whether tailgating or engaging with brand activations. For brands to truly connect with these fans, they must seek to understand and cater to their needs, redesigning the fan experience to create a more inclusive and engaging community.
But what does that look like? Traditionally, sports fandom has been defined by loyalty to teams and players. But that’s evolving as bilingual Latinos navigate between cultures and languages. Understanding cultural nuances and generational differences within the Latino community can translate into higher ticket sales, greater demand for merchandise, and overall fan engagement for leagues.
Because of this, major sports leagues, such as the NFL and MLB, are increasingly embracing the importance of diverse narratives and communities within their fan base. Aside from drafting Latino players and sponsoring Spanish-language simulcasts, leagues and franchises successful at leveraging Latino fandom understand the elements of their sports entertainment offering that appeal to Latinos and invest in supporting those features.
Tapping into this demographic represents a substantial economic opportunity. With nearly 20% of the US population identifying as Latino and 40% considering themselves avid sports fans, there's immense potential for growth and innovation. However, capturing the attention and loyalty of young bilingual fans requires more than gestures like heritage nights, which can be perceived as performative if not integrated into a broader engagement strategy. Engagement demands a deep understanding of Latinos' cultural backgrounds and preferences and a commitment to authentic representation. Sports leagues must incorporate these insights into their growth strategies, ensuring the fan experience reflects the diverse communities supporting them.
In this episode of The New Mainstream podcast, Jesus Chavez, co-founder and CEO of CABRA Sports, delves into Latino sports fandom, exploring the strategies and cultural insights driving the industry’s evolution.
The past year has been a roller coaster ride for multicultural marketing practitioners. From the recent Supreme Court ruling on affirmative action to increased scrutiny of diversity, equity and inclusion (DEI) initiatives, companies are carefully assessing how these factors will impact their multicultural marketing budgets. ThinkNow shares this curiosity and has recently surveyed corporate decision-makers in multicultural marketing and multicultural consumer research, aiming to understand how they are strategically navigating the current landscape.
Download the report here.
Multicultural marketing budgets are on the rise. Two-thirds of respondents plan to maintain or increase their multicultural marketing budgets in 2024. The driving force? Opportunity. Recognizing the economic power of diverse consumers and demographic shifts, companies see multicultural marketing as a key growth strategy.
Among the reasons cited by the 31% of respondents who plan to increase their budgets are identifying new business opportunities, acknowledging cultural influence on their business, and a desire to better represent and impact diverse audiences.
Additionally, respondents highlighted the importance of staying ahead of cultural trends and consumer behaviors to remain relevant and effective in their marketing efforts. This includes understanding the nuances of different cultural identities and tailoring messaging and campaigns accordingly. Companies recognize that cultural relevance is not only a matter of inclusivity but also a strategic imperative for engaging and retaining diverse consumer segments.
Interestingly, nearly 40% of respondents intend to maintain their 2023 budgets, indicating a continued commitment to multicultural marketing. This demonstrates a continued recognition of the economic significance of multicultural consumers and the importance of targeting this segment effectively.
However, amidst the optimism surrounding budget increases, there are challenges and instances of caution. Eighteen percent of multicultural marketing decision-makers plan to decrease budgets, citing general cost-cutting measures and clients shifting towards broader "general population" strategies. Among the reasons given by the minority who stated they’re reducing their budgets were:
Moreover, there is a growing emphasis on accountability and measurement in multicultural marketing efforts. Companies are increasingly leveraging data and analytics to evaluate the effectiveness of their campaigns and ensure they are resonating with diverse audiences. This includes monitoring key performance indicators such as brand awareness, consumer engagement, and sales lift among multicultural segments.
Still, 1 in 4 companies are adapting their approach. The cost of “getting it wrong” has increased in recent years. No one wants to be in the position Budweiser was in after boycotts erupted in response to their partnership with a trans influencer. In response, some companies are taking a more cautious approach, while others are conducting more research before launching new campaigns.
Key Takeaways:
What does this mean for the future? While challenges exist, the prevailing sentiment among many practitioners is that multicultural marketing represents a pivotal avenue for growth. Companies adept at strategically maneuvering through these changes and placing a premium on comprehending diverse consumer demographics will undoubtedly find themselves poised for success.