Understanding the Connected TV (CTV) Advertising Landscape in Mexico
The Mexican advertising market is undergoing a transformation that few brands are leveraging correctly. While major corporations continue to pour millions into traditional TV spots with increasingly difficult-to-measure results, there is a channel that is growing explosively and offering something linear TV never could: surgical precision to reach exactly who you want, when you want. We are talking about connected TV advertising, a format that combines the visual impact of the big screen with the targeting capabilities of digital marketing.
If you are wondering how to start investing in CTV advertising in Mexico, the short answer is that it has never been more accessible than it is now. According to recent data from Mobility Foresights, the CTV advertising market in Mexico will grow from $18.5 billion in 2025 to $65.2 billion by 2031, with an annual growth rate of 23.4%. These numbers don't lie: advertisers are shifting their budgets to where the audiences are, and Mexican audiences are on streaming.
The most interesting part is that you no longer need to be a brand with a multi-million dollar budget to appear on your ideal customer's screen while they watch their favorite series. The barriers to entry have fallen, self-service platforms have democratized access, and the time to get in is now, before the competition saturates the premium inventory.
Growth of streaming platforms and Smart TVs in the Mexican market
Mexico has become one of the most dynamic markets for streaming in Latin America. Smart TV penetration in Mexican households has grown steadily, driven by more affordable prices and a content offering that already outperforms traditional television in many demographic segments. A surprising fact for many: according to Amagi, the CTV adoption rate in Mexico reaches 93%, even surpassing the U.S. market.
This growth is no coincidence. Mexicans have adopted streaming as their primary way of consuming audiovisual content, especially among the 18 to 45 age demographic. Platforms like Netflix, Amazon Prime Video, Disney+, and FAST services like Pluto TV have built massive audiences that spend hours every day in front of their connected screens. For advertisers, this represents an unprecedented opportunity to capture attention in an environment where the user is genuinely engaged with the content.
The fundamental difference from traditional TV lies in viewer behavior. In streaming, people actively choose what to watch, when to watch it, and on which device. This intentionality translates into greater receptivity toward relevant advertising messages, provided they are well-targeted and creatively engaging.
Key differences between CTV, OTT, and traditional linear television
Before investing a single peso, you need to understand the terminology, because this is where many agencies get confused. CTV refers specifically to connected TV: any TV screen that connects to the internet, whether it's a Smart TV or a television with devices like Roku, Amazon Fire TV, or Apple TV. OTT, on the other hand, stands for "over-the-top" and describes content that is delivered directly to the user via the internet, bypassing traditional cable or satellite providers.
Traditional linear television operates on a broadcasting model: the same content is transmitted to millions of people simultaneously, and targeting is limited to time slots and programming types. If you want to advertise during the 10 o'clock news, you reach everyone watching that program, whether they are your target audience or not. CTV advertising completely flips this logic.
With CTV, you can show your ad only to households with specific demographic characteristics, in specific geographic locations, with particular interests, and even based on previous purchasing behavior. Two people watching the same streaming program can see completely different ads. This personalization capability is why advertisers are shifting budgets from linear TV to CTV, as confirmed by Mobility Foresights in its analysis of the Mexican market.
Fundamental steps for defining your investment strategy
Launching into CTV without a clear strategy is like sailing without a compass. I have seen agencies waste significant budgets because they didn't correctly define who they wanted to reach or what they wanted to achieve. The good news is that with a little prior planning, you can maximize every peso invested and get measurable results from your very first campaign.
Identifying specific audiences and behavioral targeting
The first step, and probably the most important, is to define exactly who you want to reach with surgical precision. Forget vague descriptions like "adults 25 to 54." In CTV, you can go much deeper. Think in terms of behaviors, interests, and life stages.
For example, if you sell car insurance, you don't just want to reach people of driving age. You want to reach those who recently searched for information on new cars, who live in urban areas with high accident rates, and who have an income profile compatible with your product. CTV platforms allow for this level of granularity using first- and third-party data that cross-references information from multiple sources.
Geographic targeting is particularly powerful in Mexico. You can limit your campaigns to specific states, cities, or even zip codes. A restaurant in Monterrey doesn't need to pay for impressions in Cancun. A gym chain can activate different campaigns in each location where it operates, with localized messages and offers.
Establishing campaign budgets and KPIs
This is where many get paralyzed: how much should I invest? The honest answer is that it depends on your goals, but the barrier to entry is much lower than you imagine. You no longer need to commit six-figure budgets to test the channel. You can start with modest investments, learn what works, and scale gradually.
The critical thing is to define KPIs before launching any campaign. If your goal is awareness, you will measure unique reach and frequency. If you are looking for consideration, Video Through Rate and Brand Lift will be your primary metrics. For performance campaigns, you will need to set up conversion attribution from the start. Without clear KPIs, you won't know if your investment is working or if you need to optimize.
A common mistake is expecting immediate performance results from a channel that works best for brand building. CTV is excellent for generating awareness and consideration at the top of the funnel. It can drive conversions, but typically as part of a multi-channel strategy where CTV creates the demand and other channels capture it.
Platforms and buying ecosystems available in Mexico
The CTV buying ecosystem in Mexico has matured significantly in recent years. You are no longer limited to negotiating directly with each publisher or relying on expensive intermediaries. There are multiple options that adapt to different needs, budgets, and levels of technical sophistication.
Direct publisher buying vs. programmatic buying
Direct buying involves negotiating specific deals with streaming platforms or broadcasters. This model offers greater control over where your ads appear and typically guarantees premium inventory. However, it requires lengthy negotiations, significant investment commitments, and lacks the flexibility to optimize in real time.
Programmatic buying, on the other hand, automates the process through technology platforms that connect advertisers with available inventory across multiple publishers simultaneously. You can adjust budgets, pause campaigns, or change targeting in a matter of minutes. The traditional trade-off was less control over the ad context, though this has improved dramatically with more sophisticated brand safety tools.
For mid-sized agencies and brands just starting out in CTV, self-service platforms represent the most efficient entry point. They combine the accessibility of programmatic buying with intuitive interfaces that don't require deep technical expertise. You can plan, launch, and optimize campaigns without intermediaries or complex negotiations.
Key inventory: YouTube Select, Roku, Samsung Ads, and local apps
YouTube Select offers access to premium YouTube content viewed on TV screens, with targeting based on Google's proprietary data. It is particularly strong for reaching younger audiences and for campaigns looking to scale quickly. The downside is that you are competing in the same ecosystem as millions of other advertisers, which can drive up costs in competitive categories.
Roku has built a significant presence in Mexico and offers its own advertising platform with access to users of its devices and The Roku Channel. Samsung Ads allows you to reach users of Samsung Smart TVs, which represent a significant portion of the Mexican market. Both options offer unique viewing data that is not available on other platforms.
Local streaming apps and FAST channels like Pluto TV represent valuable inventory, especially for brands seeking cost efficiency. CPMs tend to be lower than on premium platforms, and the audiences can be just as valuable depending on your target.
Creative formats and best practices for the local market
The most common format in CTV is the 15- to 30-second pre-roll or mid-roll video. Unlike YouTube on mobile devices, most of these ads are non-skippable, which ensures your message is seen in its entirety. This is both an advantage and a responsibility: you have the viewer's attention, but you must use it wisely.
Non-skippable ads and interactive elements with QR codes
Non-skippable 15-second ads are the most cost-effective format for awareness campaigns. You have enough time to communicate a clear and memorable message without fatiguing the viewer. 30-second spots work better when you need to tell a more complex story or when your product requires explanation.
A trend gaining traction in Mexico is the use of QR codes in CTV ads. The viewer can scan the code with their phone while watching the ad, creating a direct bridge between the big screen and action. According to Mexico Business News, 58% of internet users in Mexico have taken action after seeing CTV ads, which demonstrates the format's effectiveness in generating a response.
For the Mexican market, the creatives that perform best are those that connect emotionally with local audiences. Avoid simply translating spots created for other markets. Humor, cultural references, and colloquial Mexican language generate more engagement than generic Latin American messaging.
Measuring success and optimizing CTV campaigns
One of the most significant advantages of CTV over traditional television is the ability to measure results with precision. You no longer rely on rating estimates based on statistical samples. You have real data on served impressions, video completions, and, increasingly, attributable conversions.
Essential metrics: VTR, unique reach, and Brand Lift
Video Through Rate measures the percentage of viewers who watched your ad to completion. In non-skippable formats, this metric typically exceeds 95%, but it remains useful for identifying technical or creative issues that cause drop-offs. Unique reach tells you how many different people you reached, eliminating duplicates across devices and platforms.
Brand Lift studies measure the impact of your campaign on brand metrics such as awareness, consideration, and purchase intent. They are conducted through surveys of groups exposed and unexposed to your advertising, and they are the most direct way to demonstrate the value of your CTV investment for branding objectives.
Cross-device attribution and conversion tracking
The most complex challenge in CTV measurement is connecting ad exposure to conversions that typically occur on other devices. Someone sees your ad on their living room TV, but makes a purchase from their phone or laptop hours or days later. Cross-device attribution solutions use probabilistic and deterministic identifiers to connect these dots.
It is important to mention that Azira points out that ad fraud remains a concern in CTV that can impact ROI. Work with platforms that offer transparency regarding their inventory and implement third-party verification to ensure your impressions reach real people.
Legal considerations and future CTV trends in Mexico
The regulatory framework for digital advertising in Mexico is evolving. The Federal Law on the Protection of Personal Data applies to the collection and use of information for ad targeting. Ensure that the platforms you work with comply with these regulations and offer transparency regarding their data practices.
Trends point toward greater personalization, more sophisticated interactive formats, and convergence between CTV and other digital channels. Programmatic buying will continue to gain share over direct deals, further democratizing access to premium inventory.
For agencies and brands looking to get started today, platforms like Masha offer an accessible entry point into the world of CTV. With investments starting at $2,000 MXN, no long-term contracts, and the ability to launch campaigns in minutes, you can test the channel without committing significant budgets. Learn more about Masha and discover how streaming TV advertising can work for your business.
The time to invest in CTV advertising in Mexico is now. Audiences have already migrated to streaming, entry costs are accessible, and measurement tools allow you to demonstrate results with clarity. The question is no longer whether you should be on CTV, but how much longer you can afford not to be.
