Mercado Play: AVOD OTT inside an Ecommerce

AI Recommendations and Multi-Platform Launch

Mercado Play Project Cover

The Challenge

Mercado Libre aimed to embed a free, ad-supported streaming experience (AVOD) within its core e-commerce ecosystem, expanding time spent and loyalty without disrupting shopping flows. The critical challenges were to build a scalable AVOD operating model, orchestrate multi-studio catalog licensing, deliver quality of experience across devices, and monetize effectively through retail media while maintaining a seamless in-app experience for a massive LATAM audience (150M+ users across 18 countries).

My Role & Key Responsibilities

  • As Product Manager, led end-to-end delivery of Mercado Play, orchestrating discovery-to-launch across mobile, web, and Smart TV clients.
  • Worked cross-functionally with a team of 45 engineers, designers, and data scientists across 7 countries, delivering on a bi-weekly release cadence.
  • Defined product strategy and roadmap, established AVOD KPIs (MAU, watch time, session duration, ad impressions, fill rate, eCPM, QoE), and built the growth model through recommendations and cross-surface placements.
  • Partnered with Content, Legal, and Ads to operationalize studio licensing, ad tech integrations (CSAI/SSAI), and measurement with retail media teams.

The Solution

Launched Mercado Play, a free, ad-supported streaming service embedded directly in the Mercado Libre app and later distributed on Smart TVs. The platform blended on-demand, live events, and partner content (e.g., Disney+ catalog access via commercial tie-ups) to maximize breadth of catalog and monetization opportunities.

A core differentiator was a data-science recommendation engine combining collaborative filtering with content-based ranking, optimized to increase session duration and ad opportunities while preserving QoE across variable network conditions. Client-side and server-side ad insertion were implemented to expand formats and improve yield, with robust device coverage and low-latency playback.

Mercado Play TV

Results & Impact

  • Scaled to multi-million MAU and drove tens of millions of viewing minutes within the Mercado Libre ecosystem, validating AVOD inside retail at scale.
  • The recommendation engine increased average session time by 22%, improving both engagement and monetization surfaces.
  • Expanded distribution to Smart TVs (Samsung Tizen, LG webOS, Android TV, Google TV), achieving high-demand downloads pre-announcement and rapid adoption post-launch; official rollout reached 4M+ monthly viewers, 2,500+ titles, and 15,900 hours of curated content, with live events (UEFA Euro semis, Olympic Games, Buenos Aires Trap) further boosting peaks and retention.
  • Unlocked new retail media revenue surfaces through CTV and premium video inventory, complementing on-site formats and extending reach via media partnerships (e.g., video ad distribution on Disney+).

Platform & Market Context

  • AVOD value proposition: Free, ad-supported content tailored for LATAM price sensitivity and churn dynamics, with access to 6,000+ hours and 1,600+ titles at launch; bundled discounted access to SVOD partners (Disney+, Star+, HBO Max, Paramount+) created a hybrid aggregation model.
  • Ecosystem distribution: Available across Argentina, Mexico, Chile, and progressively rolled out to Brazil, Colombia, Peru, and Uruguay, leveraging Mercado Libre’s massive audience scale and identity graph.
  • Retail media engine: Mercado Libre’s ad business surpassed $1B in media revenue with ~2.1% of GMV, positioning the company among LATAM’s leading media players and enabling premium video formats for brand budgets.

Technical Excellence

  • Adopted a best-in-class player SDK to reduce integration complexity, support ABR streaming, DRM, advanced casting, and CSAI/SSAI, and ensure consistent QoE across web, mobile, and TV.
  • Achieved low-latency DASH/HLS playback, broad device support, and customized universal UI across platforms, improving time-to-market and operational efficiency.
  • Implemented performance and QoE monitoring to drive continuous optimization of start time, buffering ratio, error rates, and ad experience.

Competitive Advantage & Differentiation

  • Embedded in commerce: Integrated identity, first-party data, and retail media demand yield a closed-loop measurement advantage over pure-play streamers.
  • Hybrid model: AVOD plus third-party SVOD aggregation creates breadth and choice while keeping the core service free.
  • CTV reach: Smart TV distribution opens premium video inventory with brand-safe context and scaled frequency, now a key lever of retail media growth.

Innovation Legacy

Mercado Play proved that a retail platform can operate a top free streaming service in LATAM, leveraging first-party data, identity, and retail media to build a sustainable AVOD business that increases engagement, opens CTV brand budgets, and strengthens marketplace loyalty. With Smart TV expansion and media partnerships, Mercado Libre is executing its long-term view of becoming a media company while remaining commerce-first.