The pervasiveness of digital is increasingly central, which is also contaminating other media: TV and Out of Home.
During the conference to present the results of the research " Advertising beyond digital borders: the era of media convergence " held by the Internet Media Observatory, the 2022 data of the Italian market and the current trends for the current year were presented.
Overview
At the end of 2022, the Italian advertising market, including revenues from TV, Press, Internet Media, Radio and Out of Home, reached a value of 9.4 billion euros, up slightly (+1%) compared to 2021. All Within this panorama, the Internet consolidates its leadership with a 48% share and a growth of +4% compared to 2021; followed by TV (37% and -5%), Press (7% and -6%), Radio (4% and +2%) and finally Out of Home with strong growth (4% and +40%).
However, the market trend is conditioned by the performance of a few players: the major international players who collect 81% (up by 2 percentage points compared to 2021) of advertising investments.
The Video format (+8%) is also driving the growth of the market, reaching almost 1.6 billion euros and increasing its incidence on the total Internet (35%). Audio advertising is also included in the creation of new touchpoints this time with a growth of +37%.
In 2023 we will see a growth in Internet Advertising, which could settle at around +7% (for a total of over 4.8 billion).
Advertising in Italy, specifically, based on the estimates made by Nielsen, closed the first quarter positively. If the estimate on search, social, classified (sponsored ads) and the so-called "Over The Top" (OTT) is excluded from web collection, the trend in the four-month period of 2023 stands at +2.4%.
TV is flat +0.3% in April and up 1.1% in the quarter. Newspapers in April decreased by 8.3% (four-monthly -1.4%), while magazines grew by 21.9% (four-monthly -6.8%). Radio was also down in April -8.8% (quarterly +3.7%).
Positive signs also for Out of home (Transit and Outdoor) and Go TV which grew respectively by 24.9% and 104.8% in the quarter. Direct mail is negative -10%, while cinema is growing +40.8%.
Digital Out of Home
In 2022, Digital Out of Home advertising investments amounted to 108 million euros, with strong growth (+72%) compared to 2021. Following the significant collapse suffered by the health emergency, the medium is growing again, exceeding the pre-pandemic value . The digital component accounts for 27% of the Out of Home total.
Positive trend that will continue also in 2023 and will bring the Digital Out of Home to reach 134 million euros (+25%).
Among the main predictions for this year in the DOOH area emerges that:
- there will be greater contamination between the metaverse and the digital out of home industry supported both by technological change (in particular with programmatic advertising) and by Gen Z: the consumer group destined to guide retail operators in the world of the metaverse.
- the formats that will allow greater engagement and involvement of the public, maximizing the effectiveness of the message, will be solutions such as digital audio and 3D video.
- in 2023 there will be the definitive consecration for header bidding on DOOH screens while the data will continue to cover a primary function by acting on key factors such as precision targeting, measurement of campaigns and subsequent audience behaviour.
TV 2.0
In 2022, advertising investments destined for connected TVs are worth 361 million euros (+55% on 2021). This trend is the result of various dynamics: an important collection linked to sporting events broadcast on OTT platforms and enjoyed on the big screen, a constant increase in the use of web applications and finally, a growth in the Addressable component linked to linear programming and interactive services of HbbTv of the broadcasters.
In 2022, the collection of new AVOD - Advertising Video on Demand players is still contained, whose offers will be monitored in 2023 to understand if they will attract new advertising budgets or will erode the shares of other operators (TV or Internet).
Also this year we will see a good growth (+29%) of these advertising investments, which will reach around 470 million euros.
According to a research by Rakuten Advertising, around 65% of Italian viewers, in fact, are considering watching more free streaming services with advertising, as a direct consequence of the increase in the cost of living.
AVOD therefore represents the key channel for 2023 as it allows flexibility, maximum impact and reach to meet new user needs.
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