Connected TV (CTV) is revolutionizing the traditional TV advertising market. Connected TV is a constantly evolving and developing market, especially in Italy, which offers new opportunities for Publishers, Advertisers and Brands.
The data also confirm this trend, in 2023 advertising investments in CTV amounted to 26 billion. The growth of this new media opens up new and interesting possibilities that cannot be overlooked.
The Italian CTV Scenario: Sustained Growth
The growth of Connected TVs is not only about investments, in fact, there is also a growing interest in this medium for consumers, which is confirmed by the increase in the number of connected devices.
Also for the Italian market, the adoption of CTV is constantly growing. According to a study conducted by Trade Desk, the number of users using streaming services through CTV devices is steadily increasing.
A growth that concerns not only the number of connected devices, but also the hours of use of CTV compared to traditional TV by viewers. The survey shows that 8 out of 10 Italians spend up to 2 hours a day watching content on streaming platforms, divided between CTV (51%, up from 49% in 2022) and YouTube (27%). While only 2 out of 10 Italians continue to use traditional TV for two hours/day.
If all this were not enough, another figure is very interesting, namely that relating to advertising content. 76% of Italian viewers said they were willing to accept advertising content on streaming services such as PrimeVideo, Netflix and Disney+, in exchange for a cheaper or free service. This figure highlights a strong openness towards streaming advertising, with 3 out of 4 Italians paying attention to commercials without changing the channel or getting distracted. On the contrary, traditional TV manages to capture the maximum attention of only 1 in 3 Italians.
Connected TV and investments in television advertising
The growing adoption of CTV and streaming services is also producing important transformations in television advertising.
According to data from surveys conducted by the Internet Media Observatory of the School of Management of the Politecnico di Milano, television advertising in Italy will reach a value of 4.3 billion euros in 2024, an increase of 6% compared to 2023. This is 39% of the entire Italian advertising, with solid and continuous growth in the sector.
But what is really more interesting is the growth attributed to Connected TV (CTV), which is expected to reach €568 million this year, an increase of 21% compared to the previous year.
If these are the forecasts at the Italian level, for the European market the growth rate of CTVs stands at even more significant values of 23.5% according to IAB Europe’s AdEx Benchmark 2023. CTV is overtaking other non-social video formats, becoming a crucial element in advertising strategies.
Connected TV Advertising: What Changes From Linear TV?
One of the most obvious changes compared to traditional television is the possibility of taking advantage of much more targeted and personalized advertising. While linear TV offers advertising space based on rigid programming and a general audience, CTV allows you to segment your audience precisely, based on data such as age, interests and viewing behaviors.
This fundamentally changes the way companies can plan and distribute their messages. Ad campaigns can be tailored to specific groups of users, improving effectiveness and return on investment (ROI).
The Benefits of CTV for Publishers
For publishers, CTV is a strategic platform to monetize their content. With greater profiling and targeting capabilities and greater flexibility in inventory management, publishers can offer tailored solutions for advertisers, leveraging the power of data to maximize revenue. In addition, CTV advertising campaigns are significantly more measurable than traditional TV, allowing advertisers to monitor campaign performance in real time and make adjustments as they go.
CTV Advertising Formats and Types
Connected TV advertising can take many forms, each designed to engage the user in a different way. Among the main formats we find:
- Pre-roll, Mid-roll, and Post-roll: These are the ads that appear before or while watching a piece of content. Similar to traditional TV commercials, but with more customization options.
- Interactive Ads: Due to the connected nature of CTV, it is possible to insert interactive elements into ads, allowing users to interact directly with the advertising content, for example by clicking on a link or participating in a survey.
- Overlays: These are ads that are overlaid on top of the content being viewed, which do not interrupt the viewing but offer additional information. They are less invasive and ideal for campaigns that aim for constant visibility.
- Bumper Ads: Very short ads (typically 6 seconds), ideal for high-impact messages that need a condensed format.
- Skippable and Non-Skippable Ads: As the name suggests, skippable ads can be skipped after a few seconds, while non-skippable ads require to be viewed entirely. This format allows you to balance the impact of your ad with the user experience.
- Display ads: classic ads in the form of banners or displays that appear either on the home page or while viewing content that do not interrupt but integrate with the viewing of the content
Opportunities for the Future of Marketing and Advertising
CTV not only offers greater flexibility than linear TV, but also a more personalized and dynamic user experience. For advertisers, this means the ability to build targeted campaigns, optimize advertising budgets, and increase audience engagement.
The future of CTV advertising in Italy promises to be full of opportunities. The ability to combine TV’s extensive reach with digital’s targeting capabilities makes CTV a powerful tool for any marketing strategy. And as technology continues to evolve, it is expected that advertising formats will become more and more, with greater interactivity and opportunities for engagement.
Thanks to Connective TV, even television advertising becomes an accessible channel compared to traditional TV, which has always been the prerogative of big brands due to the very high costs.
In conclusion, Connected TV is set to become one of the most powerful tools available to brands, advertisers, and publishers. Its mix of advanced targeting, accurate measurability, and innovative ad formats makes it a no-brainer for those looking to stay competitive in the world of digital advertising.
