Retail Platform Advertising - Italy

In Italy, ad spending in the Retail Platform Advertising market market is projected to reach US$1.92bn in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 11.67%, leading to a projected market volume of US$3.72bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Italy is anticipated to amount to US$98.49 in 2024.
In global comparison, the majority of ad spending will be generated the United States, which is expected to reach US$57.63bn in 2024.
In Italy, retail platform advertising is increasingly integrating local cultural nuances, enhancing consumer engagement through personalized marketing strategies that resonate with regional preferences.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Italy is witnessing mild growth, influenced by factors like the shift towards e-commerce, evolving consumer behaviors, and the need for targeted advertising strategies, all contributing to its gradual expansion within the broader advertising landscape.

Customer preferences: In Italy, consumers are increasingly gravitating towards personalized shopping experiences on retail platforms, reflecting a desire for tailored product recommendations and targeted promotions. This trend is fueled by a younger demographic that values convenience and digital engagement, along with a growing preference for local and sustainable products. Additionally, the rise of social media influencers is shaping purchasing decisions, as consumers seek authenticity and relatability in their shopping journeys, making targeted advertising more vital than ever.

Trends in the market: In Italy, the Retail Platform Advertising Market is experiencing a shift towards hyper-personalization, with retailers leveraging advanced data analytics to deliver customized shopping experiences. The trend is driven by a tech-savvy younger audience that prioritizes seamless digital interactions and seeks out brands that align with their values, particularly in sustainability. Meanwhile, the influence of social media advertising continues to grow, as consumers increasingly rely on online reviews and influencer endorsements. For industry stakeholders, these dynamics present both challenges and opportunities, necessitating innovative strategies to engage consumers authentically and effectively.

Local special circumstances: In Italy, the Retail Platform Advertising Market is shaped by a blend of rich cultural heritage and a strong emphasis on local craftsmanship, which influences consumer preferences for quality and authenticity. Regional diversity leads to tailored marketing strategies, as brands must resonate with varied cultural narratives across the country's 20 regions. Additionally, stringent regulations on data privacy compel retailers to adopt transparent data practices, fostering consumer trust. This unique context enables brands to create engaging and culturally relevant advertising campaigns that enhance customer loyalty.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Italy is significantly shaped by macroeconomic factors such as consumer spending trends, digitalization, and economic stability. The recovery from the pandemic has led to a resurgence in consumer confidence, driving increased investments in digital advertising. Additionally, Italy's robust tourism sector enhances market demand as international brands seek to engage local consumers. Government fiscal policies promoting digital transformation and innovation facilitate greater advertising expenditures. Furthermore, the global shift towards e-commerce amplifies competition, urging brands to optimize their advertising strategies to capture the attention of a diverse consumer base while adhering to strict data privacy laws.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.