South America Advertising Video-on-Demand (AVOD) Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America Advertising Video-on-Demand (AVOD) Market Trends and Insights

Expansion of Low-Cost Ad-Supported Streaming Tiers

Lower-priced plans have broadened the audience for the South America advertising video-on-demand (AVOD) market more quickly than content spending alone could have. Netflix’s ad-supported plan reached 40% of active accounts across tracked markets in Q3 2025, compared with 26% in Q4 2024, while Disney+ ad-tier use rose from 35% to 44% over the same period.^{[1]Digital i, “Netflix Drives Global Growth in Ad-Supported Streaming,” Digital i, digital-i.com} In 2026, 5 of Brazil's 7 major streaming platforms offered lower-cost, ad-funded access. The growing role of these plans means advertisers are reaching newer and more price-sensitive subscribers rather than a limited secondary audience. Platforms are also selling sponsorships alongside programmatic placements, helping position ad-supported inventory as a more deliberate advertising product. Brazil’s pending audiovisual framework, including a proposed Condecine levy and a 10% local-content requirement, may increase local production spending and strengthen catalog depth over time 

Migration of Linear Television Budgets to CTV Inventory

Advertising budgets are moving toward connected TV as brands seek video audiences beyond linear broadcast. Connected TV spending in Brazil reached USD 170 million in 2026, and the country’s connected TV advertising spend is projected to grow by 23.7% this year. Connected TV offers audience-level targeting and viewer profiles, while linear television primarily relies on broader reach metrics. This change requires platforms in the South America advertising video-on-demand (AVOD) market to provide credible, consistent measurement for advertisers. It also encourages broadcasters such as Globo to expand connected TV inventory alongside their broadcast rights. Online video was projected to generate USD 34 billion in South America in 2026, surpassing traditional television revenue for the first time. The change is likely to remain durable because buyers increasingly expect targeting and verification in their video campaigns.

Growth of Smart TV and Connected TV Reach

Connected TV use has moved beyond early adopters and is bringing a broader household audience to the South America advertising video-on-demand (AVOD) market. A Comscore survey conducted across 6 South American countries in September and October 2025 found that 60% of digital users consumed content through connected TV. The region’s smart TV installed base was approaching 193 million units, which expands the possible reach for large-screen advertising. Different operating systems, including Tizen, webOS, and Android TV, make it harder for advertisers to manage reach across screens. A service that secures preinstallation on a major smart TV platform gains a valuable position on the first screen viewers see. This advantage can favor established services over new entrants, particularly in a market where viewers often choose from preloaded apps. The 2026 FIFA World Cup has also encouraged investment in large-screen viewing in Brazil and Colombia, supporting connected TV use in urban households.

Mobile-First Viewing and Affordable Data Packages

Mobile devices remain the main streaming access point for many consumers in Peru, Colombia, and lower-income urban areas of Brazil. Claro Brazil’s Prezão plan offered 12 GB of unrestricted data at BRL 2.50 per GB (USD 0.47 per GB) in Q4 2025. Nubank’s NuCel service offered 30 GB per month for BRL 70 (USD 13.30) on Claro’s 5G network, with 93% national coverage. More affordable data allows viewers to stream away from home rather than restricting use to Wi-Fi sessions. This supports more frequent viewing and greater total viewing time for mobile-focused services such as YouTube and Tubi. Mobile inventory generally earns lower rates than connected TV inventory, so high mobile use can favor audience volume over yield. Mid-roll formats are therefore becoming more useful because they can hold attention better than skippable pre-roll ads during mobile viewing.

Low Advertising Yield and Currency Volatility

Advertising rates in South America are lower than in North America and Western Europe, creating a difficult revenue model for platforms investing in content. Currency depreciation, especially in Argentina, can reduce the USD value of advertising commitments when contracts are renewed in local currencies. The gap is not only a pricing issue, as fewer domestic advertisers can afford the rates charged in larger advertising economies. Lower revenue per viewer-hour can constrain the funds available for content, limiting a platform’s ability to attract premium audiences. Some platforms are responding through retail-media partnerships that link advertising exposure to commerce data and measurable outcomes. This approach may support higher-value placements without relying solely on audience size. Mercado Libre reported that advertising revenue rose 73% year over year in USD terms in Q1 2026, showing the appeal of commerce-linked advertising tools in the region.

Fragmented Measurement and Limited Cross-Platform Attribution

Inconsistent measurement across video platforms can make advertisers cautious about expanding budgets in the South America advertising video-on-demand (AVOD) market. A 2025 survey of 166 commerce media buyers in Mexico, Argentina, Chile, Colombia, and Peru found that marketers lacked consistent standards, unified campaign management, and complete digital-to-physical attribution. CENP published its Cross-Media Measurement Guide in Brazil in June 2026 to establish metrics for linear television, YouTube, streaming services, and social media. The guide responds to the risk of counting the same viewer more than once across screens. Netflix’s 2025 partnership with Kantar Ibope Media in Brazil validated the campaign audience for its own inventory, but it did not resolve regional cross-platform attribution. MiQ introduced its Sigma programmatic platform in South America in June 2026 to address fragmented consumer signals across streaming, social media, e-commerce, and connected TV. Wider adoption of common standards remains necessary before many advertisers are likely to place larger multi-market video budgets.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Content Type: Film Libraries Support Revenue While Documentaries Lead Growth

Movies and films held 39.41% of the South America advertising video-on-demand (AVOD) market share in 2025, making them the largest content type in the region. Film libraries help services start viewing sessions and maintain viewing time. YouTube, Amazon, and Tubi use extensive film catalogs to attract audiences without requiring large original production budgets. Encripta S/A’s free film distribution activity on YouTube reached 77.2 million unique monthly users and generated BRL 20 million (USD 3.8 million) in the 12 months ending July 2026. Advertising accounted for 30% of the company’s revenue during that period. The company was targeting BRL 30 million (USD 5.7 million) for the full year of 2026 and was testing vertical video formats.

Documentaries are projected to record the fastest content-type growth at a 10.94% CAGR from 2026 to 2031. Brazilian true-crime and social documentaries have become useful formats for services seeking content that works locally and can travel to other markets. Netflix added 55 Brazilian titles in 2025, while viewing of national content on the platform increased 39% in hours watched globally during the preceding 12 months. Television shows and episodic content do not have the largest share, but they can create the longest viewing sessions. Longer sessions increase the number of available advertising impressions per viewer. They also create more suitable places for mid-roll advertising. Licensing Brazilian theatrical titles can cost less per viewing hour than commissioning original content, which supports catalog depth and the economics of the South America advertising video-on-demand (AVOD) market.

By Device Type: Mobile Viewing Remains Large While Smart TVs Improve Advertising Value

Smartphones and tablets accounted for 31.73% of the South America advertising video-on-demand (AVOD) market in 2025. This position reflects mobile-first viewing across large parts of the region. Affordable data and high smartphone use in Brazil and Colombia have supported video consumption on smaller screens. Television shows, sports, and short-form vertical video are particularly suited to mobile use. YouTube and related video services have benefited from their long-standing mobile design and distribution. Laptops, desktops, and other devices accounted for the remaining share, though their share is weakening as mobile and smart TV viewing become more common.

Smart TVs are expected to grow at an 11.15% CAGR from 2026 to 2031, the fastest rate among device types. A 2025 Comscore survey across 6 South American markets found that 97% of connected TV viewers owned a smart TV. Large-screen viewing can bring higher advertising rates than mobile placements because it supports household viewing and brand-oriented campaigns. Household-level audience measurement is improving the case for shifting television budgets to connected TV. MercadoLibre launched Mercado Play on more than 70 million smart TVs in Q1 2025 across Samsung Tizen, LG webOS, Android TV, and Google TV.^{[2]Mercado Libre, “Mercado Play Available for Free on Smart TVs Across Latin America,” Mercado Libre News, mercadolibre.com} The service reached 4 million monthly viewers and offered more than 15,900 hours of free ad-supported content.

By End User: Media and Entertainment Holds the Largest Position While Education Expands Fastest

Media and entertainment accounted for 35.75% of the South America advertising video-on-demand (AVOD) market in 2025. Entertainment advertisers fit naturally into video environments because they can promote films, television, music, games, and streaming releases to engaged viewers. Studio campaigns and cross-promotion also benefit from the context that many other advertising categories cannot match. Retail and e-commerce are another important user group because platforms can use purchase-intent data for performance-based placements. Mercado Ads reported 73% year-over-year growth in advertising revenue in Q1 2026, reflecting the value of commerce data alongside video inventory. Financial services brands in Brazil and Colombia are also expanding video advertising to reach consumers considering digital financial products.

Education is projected to grow at an 11.06% CAGR from 2026 to 2031, the fastest rate among end-user groups. E-learning platforms in Brazil and Colombia are using ad-supported models to offer free course material. Universities and certification bodies are also placing educational videos within ad-funded distribution channels. IT, telecommunications, healthcare, and other end users contribute additional spending across the South America advertising video-on-demand (AVOD) market. Telefónica and América Móvil can use video placements to promote mobile-data bundles. This creates a link between the advertising product and the connectivity needed to watch content. The arrangement can support both streaming use and subscriber acquisition for telecommunications brands.

By Ad Format: Pre-Roll Is Largest While Mid-Roll Gains Momentum

Pre-roll ads captured 42.85% of the South America advertising video-on-demand (AVOD) market in 2025, making them the largest advertising format by revenue. Most AVOD services built their early advertising systems around pre-roll inventory. The format fits brand awareness campaigns because it can provide a clear impression before viewers start the content. Pre-roll placements are familiar to advertisers and easy to package into existing video-buying plans. Post-roll represented the smallest of the 3 formats because many viewers leave once their selected content ends. This behavior limits the practical audience for a post-roll message.

Mid-roll ads are projected to advance at an 11.25% CAGR from 2026 to 2031. Growth in documentaries, television series, and longer films is creating more natural breaks within content. Viewers already engaged in a program are more likely to complete a mid-roll placement than those deciding whether to begin a piece of content after a pre-roll. The original material indicates mid-roll completion rates of 70%-85%, compared with 60%-70% for pre-roll ads. Longer viewing sessions can also increase advertising revenue per session and partially offset the lower regional advertising yield. The shift toward mid-roll suggests that viewers are becoming more familiar with advertising as an exchange for no-cost content. It also gives the South America advertising video-on-demand (AVOD) market more ways to manage ad load without relying on a single placement format.

Geography Analysis

Brazil held 49.71% of the South America advertising video-on-demand (AVOD) market in 2025 and remains the region’s largest national market. AVOD accounted for 37% of Brazil’s total streaming revenue, which indicates that advertising already plays a substantial role in funding streaming services. Brazil was the world’s 3rd-largest FAST market by revenue, with USD 152 million in FAST revenue. Connected TV advertising investment in Brazil reached USD 170 million in 2026. Connected TV advertising spending in the country is projected to increase 23.7% in 2026. The Brazilian government launched Tela Brasil in May 2026 as a free AVOD service with 555 locally produced films and series. 

The service added publicly funded local content without requiring subscriber acquisition. Brazil’s proposed audiovisual framework includes a Condecine streaming levy and a minimum 10% Brazilian-content quota. Those measures could direct more platform spending toward domestic production. Colombia is projected to achieve the highest national growth rate, with a 11.21% CAGR from 2026 to 2031. The country is expected to add 1.6 million fixed broadband lines during the forecast period, while SVOD subscriptions are projected to increase 26% over 5 years.

IAB Colombia described 2026 as a period of change in digital video consumption, with faster adoption of AVOD and FAST services and more advertising moving to digital video.^{[3]Interactive Advertising Bureau Colombia, “Colombia Impulsa una Nueva Etapa del Video Digital,” IAB Colombia, iabcolombia.com} Colombia requires video-on-demand providers to show a visible section for Colombian content, which can support local licensing and viewer engagement. Argentina has high streaming density but currency and economic volatility that limits advertising rates. Chile has mature subscription streaming use, with Netflix reaching more than 40% of television households, which shifts competition toward monetization. Peru has lower household broadband coverage but strong mobile streaming in Lima and coastal cities. Ecuador, Bolivia, Uruguay, and Paraguay remain earlier-stage markets where infrastructure limits current scale, but early platform distribution can support later growth.