On the occasion of the 70th anniversary of Italian television, an event entitled "From TV to Video strategy: new perspectives for digital advertising" organized by the Internet Media Observatory was held on June 11, 2024 at the Milan Polytechnic.
Italian TV: 70 Years of Evolution and Innovation
Italian TV is 70 years old, a significant milestone that reflects its continuous transformation from the first black-and-white channel in 1954 to modern connected TV. This medium has evolved through the adoption of digital, the advent of streaming and the emergence of new platforms such as AVOD, SVOD and FAST Channel:
- AVOD (Advertising-Based Video on Demand): Platforms that offer free content supported by advertising. Users do not pay a subscription but must watch ads embedded in videos. Common examples include YouTube and some versions of Hulu.
- SVOD (Subscription Video on Demand): Subscription-based services where users pay a monthly or annual fee to access an ad-free catalog of content. Popular examples include Netflix, Disney+, and Amazon Prime Video.
- FAST Channel (Free Ad-Supported Streaming TV): Free ad-supported streaming channels that offer linear programming, similar to traditional TV. Examples include Pluto TV and Tubes.
All of these changes have revolutionized content consumption by extending TV enjoyment to devices such as smartphones and PCs.
The Impact of Advertising
From an advertising perspective, TV has dominated the investment market for decades, only recently overtaken by the Internet in 2020. By 2024, video advertising accounts for 55% of the Italian advertising market, reaching 6 billion euros. Advertising embedded in video content weighs 43% of the total, with 4.7 billion euros, and TV 2.0, which includes connected TV sets and online video platforms, shows significant growth.
A Paradigm Shift
The technological transformation of TV is not limited to devices, but implies a paradigm shift in enjoyment and advertising. The traditional separation between TV and other media is dissolving, requiring more integrated marketing strategies tailored to various formats and platforms. Investors are adopting innovative approaches, such as "Video Strategy," to maximize the effectiveness of advertising campaigns across different video mediums, emphasizing engagement and storytelling.
Video Strategy
In fact, one of the most discussed items at the event was Video Strategy. Specifically, it talks about an integrated approach to planning and implementing video advertising campaigns. That is, instead of considering television as the sole medium, Video Strategy involves the use of different video channels and platforms to reach audiences in a more effective and targeted way. This approach reflects the increasing diversification of the ways in which viewers consume video content, not only through traditional television but also through mobile devices, computers, and streaming platforms.
Why Video Strategy Works
One crucial aspect concerns the video advertising format. Television communication has accustomed audiences to this format since the days of Carousel, an advertising moment of about ten minutes broadcast after dinner, where commercials became short series with catchy slogans and music. Carousel was a time of aggregation for Italian families. Today, video advertising, however, is able to excite and create engagement in a few moments and is central to advertisers' strategies.
Another interesting perspective concerns content. In 2024, advertising included in video content accounts for 43%, marking a growth of 6% compared to 2023. Of this, 79% is attributable to traditional TV or HbbTv streams, 20% to online video platforms, and 1% to GoTv.
A further point concerns devices. In 2024, advertising sales on TVs will account for 39% of Italian advertising investment, reaching 4.3 billion euros, a 6% growth over 2023. Of these, TV 2.0 weighs 13%, with advertising revenue of 568 million euros, up 21% from 2023. TV 2.0 includes advertising on connected TVs, including apps on Connected TV and advertising space in the navigation menus of Smart TVs.
Conclusions
In conclusion, Italian TV, on its 70th anniversary, is in a moment of momentous transformation. The convergence of traditional and digital television offers new opportunities for advertisers, requiring increasingly integrated and innovative strategies. The ability to excite and engage, a legacy of the past, remains the strength of the video format, propelling it into an ever-evolving future.
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