Connected TV Market Outlook in Mexico for 2025-2026
The Mexican advertising market is undergoing a transformation that few anticipated just five years ago. While traditional brands are still debating whether it is worth experimenting with new formats, more agile digital agencies are already capturing massive audiences on connected TV at costs that would have seemed impossible in the era of the traditional spot. The digital advertising investment in Mexico will reach 13.14 billion dollars by 2026, with an annual growth rate of 10.5% according to Globenewswire, and a significant portion of that budget is migrating toward CTV.
For mid-sized agencies managing multiple accounts, understanding the real costs of advertising on Connected TV has become a survival skill. Clients are asking, competitors are already running campaigns, and the price difference between what a spot costs on broadcast television versus one on streaming can determine who wins the account. This analysis breaks down exactly what you can expect to pay, what factors drive prices, and how to structure budgets that actually work for the Mexican market.
Growth in Smart TV and streaming device penetration
The installed base of devices capable of receiving CTV advertising in Mexico has grown explosively over the last three years. According to data from IAB Mexico, more than 51 million people are already consuming content on connected television, representing 65% of internet users in the country. This figure is not only impressive for its magnitude: it represents an audience that was previously practically unreachable for brands with moderate budgets.
Growth is being driven by several simultaneous factors. Smart TV prices have fallen dramatically, with functional models available for less than 4,000 pesos. Devices like Roku, Amazon Fire Stick, and Chromecast have democratized access to streaming even on older televisions. Ad-supported free content platforms, such as Pluto TV, have eliminated the subscription cost barrier.
For 2025-2026, projections indicate that penetration will continue to rise, particularly in mid-sized cities and metropolitan areas outside the Valley of Mexico. This means growing advertising inventory, but also increased competition for premium spots.
Shifts in digital video consumption habits in the Mexican market
Mexicans spend approximately 4 hours a day watching content on connected platforms, according to El Publicista. This data fundamentally changes the advertising equation: we are no longer talking about a complementary channel, but rather where audience attention truly resides.
Consumption has fragmented in interesting ways. Evenings remain prime time, but consumption during the afternoon and on weekends has grown substantially. Streaming sports content has attracted audiences that previously only watched broadcast television. On-demand series and movies compete directly with traditional programming.
This shift in habits has direct implications for advertising costs. Premium CTV time slots no longer align exactly with those of traditional television. Younger audiences, particularly adults aged 25 to 44 with purchasing power, have practically abandoned broadcast TV. For agencies, this means completely rethinking media planning.
Cost structure and buying models in CTV advertising
Understanding how pricing is structured in CTV requires abandoning some preconceived notions of traditional media buying. There are no fixed rates published on a rate card. Prices fluctuate based on demand, inventory quality, and targeting capabilities. The good news: this complexity also creates opportunities for those who know how to navigate the market.
Average CPM range by inventory type and platform
CPM, or cost per thousand impressions, is the standard metric for comparing prices in CTV. In Mexico, ranges for 2025-2026 vary considerably depending on the type of inventory.
Premium inventory from recognized platforms typically ranges between 180 and 350 Mexican pesos per CPM. This includes spots in original content on major streaming platforms, pre-roll positions in popular series, and guaranteed placements during high-traffic hours.
Standard inventory on AVOD platforms—those funded by advertising, such as Pluto TV or Tubi—offers more accessible CPMs: between 80 and 180 pesos. The production quality of the content is good and the audiences are real, but exclusivity and control over specific placement are lower.
Platforms like Masha offer access to premium inventory with prices starting at 0.01 pesos per view, with no contracts or minimum investment requirements. This self-service model eliminates intermediaries and allows mid-sized agencies to access spaces that previously required complex negotiations and significant volume commitments.
Cost differences between programmatic buying and direct deals
The programmatic CTV buying process works through real-time auctions where multiple advertisers compete for specific impressions. The resulting CPMs can be lower than direct deals, but the variability is higher. One day you might get impressions at 90 pesos CPM; the next, the same inventory costs 150.
Direct deals with platforms or publishers offer fixed prices and delivery guarantees. The catch: they typically require minimum commitments of 200,000 to 500,000 pesos and multi-month contracts. For agencies managing multiple clients with varying budgets, this rigidity complicates operations.
The self-service model represents an interesting middle ground. Platforms that aggregate inventory from multiple sources allow access to competitive prices without volume commitments. Pricing transparency eliminates the uncertainty of auctions while maintaining operational flexibility.
Factors that will determine ad pricing in 2025
CTV prices don't exist in a vacuum. Multiple variables interact to determine how much you'll pay for each campaign. Understanding these factors allows you to anticipate costs and negotiate better terms.
Inventory quality and audience targeting levels
Not all CTV inventory is created equal, and price differences reflect real variations in quality. Premium content, such as hit series and recent movies, generates higher engagement and message retention. Ads in this context show a 20% increase in brand awareness compared to traditional TV, according to Siprocal.
Targeting adds another layer of cost. Reaching broad audiences, such as adults 18-54 in any location, costs less than specifically targeting business decision-makers in Monterrey interested in technology. Each additional filter reduces available inventory and increases the CPM.
First-party advertiser data can reduce targeting costs. If your client has information on their current customers, using that data to create lookalike audiences is more cost-effective than relying exclusively on platform-based targeting.
Seasonality and high-impact events in the digital ecosystem
The Mexican calendar creates predictable peaks and valleys in CTV costs. El Buen Fin, the holiday season, and back-to-school represent the most expensive periods of the year. CPMs can increase by 30% to 50% during these windows.
The 2026 World Cup deserves special attention. According to the Dentsu Report, advertising investment in Mexico will grow by double digits leading up to the event. This increase will affect all channels, including CTV, where inventory related to sports content will see significant price pressure.
A smart strategy involves planning campaigns outside of peak seasons whenever possible, or securing inventory in advance through volume commitments. For clients with timing flexibility, the months of January through March and August through September typically offer the best CPMs.
Cost comparison: CTV vs. Traditional TV and Online Video
The question every client eventually asks: how does the cost of CTV compare to the alternatives? The answer requires looking beyond the raw CPM.
Broadcast television in Mexico presents seemingly low CPMs, between 50 and 120 pesos for mass audiences. But these numbers hide significant inefficiencies. Audience waste is considerable: you pay to reach millions of people who aren't your target. Measurement is imprecise. And minimum investment commitments exclude most brands.
Online video, particularly YouTube and social media, offers CPMs of 40 to 100 pesos with precise targeting. However, the consumption context is different. Watching a 15-second video on your phone while waiting for the subway is not the same as watching a 30-second ad in your living room with full attention.
CTV occupies a middle ground that combines the advantages of both worlds: the premium context of television with the targeting precision of digital. CPMs of 100 to 250 pesos are competitive when you consider the quality of the impression and the ability to measure results with precision.
Projections for Mountain Research indicate that advertising sales in retail media networks for CTV will double from $4.99 billion in 2025 to $10.28 billion by 2028. This growth reflects market confidence in the channel's effectiveness.
Strategies for optimizing CTV campaign budgets
Knowing the costs is just the first step. Maximizing the return on every dollar invested requires specific strategies that go beyond simply looking for the lowest CPM.
Using first-party data to improve ROI
Your customers' first-party data represents an underutilized competitive advantage. Lists of current customers, website visitors, and previous buyers can be transformed into CTV audiences through matching processes with platforms.
This approach dramatically reduces wasted impressions. Instead of paying to reach anyone who fits a demographic profile, you pay only to reach those who have already shown interest or share characteristics with your best customers.
The technical process varies by platform, but the principle is consistent: upload anonymized data, the platform matches it with its inventory, and your campaigns reach more relevant audiences. The CPM may be the same or even higher, but the cost per conversion drops significantly.
Attribution measurement and key performance metrics
Measurement in CTV has evolved considerably in recent years. We no longer rely solely on branding metrics like reach and frequency. Now, we can connect ad exposures with concrete actions: website visits, app downloads, and even physical store purchases.
Fundamental metrics to monitor include the completion rate, which is the percentage of viewers who watch the entire ad. In CTV, rates above 90% are common, far exceeding online video. The cost per completed view is more useful than CPM for comparing efficiency between campaigns.
Conversion attribution requires technical integration between the CTV platform and the client's analytics tools. Self-service platforms like Masha offer real-time metrics that allow for adjusting campaigns on the fly, identifying which creatives, times, and segments generate the best results.
Future trends and advertising investment projections in Mexico
The CTV market in Mexico is far from mature. Current trends suggest significant changes in how advertising on connected television is bought, measured, and optimized over the next two years.
Platform consolidation will continue. We will see fewer but larger players, with more extensive inventories and more sophisticated targeting capabilities. This could push prices upward in the short term, but it will also simplify purchasing for agencies that currently have to manage multiple providers.
Integration with retail media networks represents the most disruptive trend. Retail chains are building advertising capabilities that combine purchase data with CTV inventory. For consumer goods brands, this means being able to show ads to people who bought competitor products last week.
The projected growth in digital advertising investment, driven in part by the 2026 World Cup, will create both opportunities and price pressures. Agencies that establish strong relationships with platforms and develop expertise in CTV during 2025 will be better positioned to capture incremental budgets.
For mid-sized agencies looking to enter the CTV market without excessive volume commitments, self-service platforms offer the most accessible entry point. With Masha, for example, you can launch campaigns starting at 2,000 Mexican pesos, with no long-term contracts and real-time metrics that allow you to demonstrate results to your clients from the very first campaign. Learn more here.
The average cost of CTV advertising in Mexico for 2025-2026 will depend on multiple factors that each agency can influence through intelligent strategy, the use of first-party data, and careful inventory selection. The market is maturing rapidly, and those who develop these competencies now will gain a lasting competitive advantage.
