Traditional TV Advertising - Italy

Ad spending in the Traditional TV Advertising market in Italy is forecasted to reach US$2.73bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of -0.25%, leading to a projected market volume of US$2.69bn by 2030.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Italy is projected to be US$51.69 in 2024.
By 2030, the number of users in the Traditional TV Advertising market in Italy is expected to reach 0.0users.
Traditional TV Advertising in Italy is seeing a resurgence, with brands leveraging its wide reach and impact in a digitally competitive landscape.

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

Moving image formats broadcasted over traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered over Internet Protocol networks (IPTV)
Spending for pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators

Online TV advertising (e.g., ad spending for TV viewed online, delivered by traditional broadcasters via their websites)

The Traditional TV Advertising market in Italy has been experiencing steady growth in recent years.

Customer preferences: Italian consumers still have a strong preference for traditional TV advertising. Despite the rise of digital platforms, many people in Italy continue to watch television as their primary source of entertainment. This is particularly true for older demographics who have grown up with television and are less likely to switch to digital alternatives. Additionally, the wide availability of free-to-air channels in Italy means that television remains accessible to a large portion of the population.

Trends in the market: One of the main trends in the Traditional TV Advertising market in Italy is the increasing use of targeted advertising. Advertisers are leveraging data analytics and audience segmentation to deliver more relevant and personalized ads to viewers. This allows them to maximize the impact of their advertising campaigns and reach specific target audiences. Furthermore, the use of programmatic advertising is also on the rise, enabling advertisers to automate the buying and selling of TV ad inventory. This not only increases efficiency but also improves targeting capabilities. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are increasingly using interactive features such as QR codes and social media hashtags to engage viewers and drive online interactions. This integration of digital and traditional advertising channels allows advertisers to extend their reach and create a more immersive brand experience for consumers.

Local special circumstances: Italy has a unique media landscape that influences the development of the Traditional TV Advertising market. The country has a strong public broadcasting sector, with state-owned channels playing a significant role in the television market. This means that advertisers need to navigate a complex media ecosystem that includes both public and private channels. Additionally, the Italian television market is characterized by a high degree of fragmentation, with numerous regional and local channels catering to specific audiences. This fragmentation presents both opportunities and challenges for advertisers, as they need to carefully select the channels that best align with their target audience.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Italy is also influenced by macroeconomic factors. Italy has a large and stable economy, which provides a solid foundation for advertising investment. Furthermore, the country has a high level of consumer spending, which creates demand for advertising across various sectors. However, it is important to note that the advertising industry in Italy is also subject to economic fluctuations. During periods of economic downturn, advertisers may reduce their advertising budgets, which can impact the Traditional TV Advertising market. Therefore, the overall health of the Italian economy plays a crucial role in the development of the market.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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 Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, media consumption, number of households with television, and consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.

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

Television changed the world; now technology is changing television. After a pandemic-related decrease in ad spending in 2020, global television ad spending has since returned to growth over the first half of the 2020s but has not succeeded in going back to its pre-pandemic figures. At the same time, TV’s share of global ad spending has been decreasing year-after-year. TV’s global deceleration is mostly attributable to a slowdown in linear TV investments, while spending on digital TV is showing no signs of slowing down. Connected TV (CTV) ad revenue worldwide is expected to almost double between 2022 and 2028, as more and more viewers ditch linear TV in favor of devices connected to the internet.