The advertising agency market - Italy (2024)

1.2 The global advertising market is booming

The global digital advertising and marketing market, valued at $***.* billion in ****, is set to grow rapidly, reaching an estimated $*.* trillion by ****. This growth will be driven by a significant compound annual growth rate (***) of **.* percent over the period ****-****.

Value of the digital marketing and advertising market World, ****-**** ResearchandMarkets

In ****, global advertising spending reached a value of $***.* billion. For the period ****-****, a steady growth in global spending is expected. Specifically, a compound annual growth rate (***) of *.* percent is estimated, which could lead total spending to exceed $***.* billion by ****.

Global advertising spending World, ****-****, in billions of dollars Dentsu In ****, global advertising spending per capita sees the United States firmly in first place, with an average value of $*** per person. This is followed by the United Kingdom, with per capita spending of $***, andAustralia, with $***.Italy occupies eighth place in this global ranking, with an average per capita advertising expenditure of $***, showing a significant gap with the leading countries, but maintaining a relevant position in the European context.

Advertising spending per capita World, ****, in dollars Dentsu Globally, in ****, the leading advertising group was Britain's WPP, with revenues of nearly $** billion. WPP operates in traditional advertising, digital marketing, consulting, and integrated communications ...

1.3 A growing domestic market

Between **** and ****, the turnover of the advertising industry in Italy grew significantly. During the period analyzed, total revenues increased from **.** billion euros to **.** billion euros, marking an overall increase of **.* percent. As the chart below shows, the trend over the medium term was positive, with the exception of ****, when there was a contraction due to the impact of the COVID-** pandemic.

Total turnover of the advertising sector Italy, ****-****, in billions of euros (***) Istat As for the advertising agency segment, total turnover in Italy showed clear growth between **** and ****. During the period analyzed, turnover increased from €*.** billion to €*.** billion, registering an overall increase of **.* percent. The impact of the pandemic in **** had significant repercussions on the industry: between **** and ****, total business turnover decreased by **.* percent. However, signs of recovery emerged as early as ****, with growth of +**.* percent, bringing turnover back to levels slightly below the pre-pandemic period. This trend underscores the industry's resilience in a context of high economic uncertainty.

Total turnover of advertising agencies Italy, ****-****, in billion euros (***) Istat

Demand for advertising services showed a positive trend between **** and ****, with some significant variations along the period. After a slight contraction of -*.* percent recorded in ****, the sector started to ...

2.1 Who are the main advertisers?

In ****, the agribusiness sector is confirmed as the absolute leader in advertising spending, holding a market share of **.* percent of total investments, thus consolidating its leading role in the economic landscape. This is followed by the distribution sector with a share of*.* percent andautomotive, which records *.* percent. The pharmaceutical and beverage sectors also maintain a significant presence, with shares of *.* percent and *.* percent, respectively. Not to be outdone, the home management and telecommunications sectors, which stand at *.* percent and *.* percent respectively, confirm their impact on the advertising market, highlighting the importance of these areas in consumers' daily lives.

Advertising investment, breakdown by sector Italy, ****,% Nielsen

In ****, the advertising investment landscape saw the Go Tv and Out of Home (***) segments as the absolute protagonists, with the highest growth rates compared to ****, with increases of +**.* percent and +**.* percent, respectively. This was followed by the cinema sector, which posted a significant +*.* percent, and radio, which continued to grow with a solid +*.* percent. Finally, the digital sector also confirmed its strategic relevance, albeit with more moderate growth, registering an increase of +*.*%, consolidating its key role in the advertising mix.

Sectors that grew the most Italy, ****, in % Source: ****

The main TV channels in Italy recorded an ...

2.2 The new trend: advertising and influencers

As of ****, the landscape of the most used social media globally is as follows:

Facebook: over * billion monthly active users. YouTube: about *.* billion users. Instagram: over * billion users. WhatsApp: nearly * billion users. WeChat: about *.** billion users. Facebook Messenger: over * billion users.

In Italy, WhatsApp is the most widely used app, with** percent of users aged **-** saying they use it. It is followed by Facebook (***). As for Italian companies, Instagram is the preferred communication channel, used by**% of companies for their marketing strategies. [***]

Italians' favorite social media Italy, ****, in % We Are Social

Spending on Influencer Marketing (***) in Italy continues to grow. Between **** and ****, companies' investment in this sector increased from €***.* million to €*** million, registering an overall increase of +**.*%. As the chart below shows, growth has been steady throughout the entire period, demonstrating an increasing interest of companies in this type of service, which is confirmed as a strategic element in communication and marketing campaigns.

Spending on influencer marketing Italy, ****-****, in millions of euros Source: ****

Regarding compliance with marketing regulations, the vast majority of influencers,**.* percent, say they always comply with current regulations. In contrast, only *.* percent of influencers admit to paying little attention to regulations and not following their instructions. ...

2.3 The digital expectations of advertisers

According to responses from global marketers collected in early ****, ** percent cited content marketing as the most effective digital technique, recognized for its significant impact on business. Next, innovative technologies such asmarketing automation, the use of big data,artificial intelligence (***) andmachine learning emerged as strategic tools for improving business performance. In contrast, paid search and display advertising campaigns were the least popular among marketers, highlighting a growing interest in more personalized and value-oriented solutions.

Digital marketing techniques rated most effective by marketers World, ****, in % of respondents Source: ****

3.1 The market structure

The advertising agency sector experienced a positive trend in the period between **** and ****, characterized by gradual and steady growth from year to year. Overall, the number of active firms increased by +**.* percent, reflecting an expanding market and growing interest in communication and marketing services. This trend highlights a dynamic and evolving industry, driven by increasing demand for innovative and digital advertising strategies.

Active firms - advertising agencies Italy, ****-****, in thousands Istat

The value of employees in the advertising agency sector also showed a positive trend over the same period, registering an overall growth of**.* percent between **** and ****. This increase reflects not only the expansion in the number of businesses, but also the growing need for specialized professionals to respond to the challenges and opportunities offered by the advertising market, which is increasingly oriented toward innovation and digital.

Number of employees active businesses - Advertising Agencies Italy, ****-****, in thousands Istat Active enterprises in the advertising agency sector show a predominance of individual and self-employed legal forms. The largest share, at **.* percent, is made up of sole proprietors, freelancers and self-employed workers, reflecting the flexibility and often small size of these activities. This is followed with **.* percent by limited liability companies ...

3.2 The value chain

For a value chain related to the work done by advertising agencies, the following points are considered:

Research and Analysis: in-depth study of market, trends, and consumer behavior to identify opportunities. Strategy: development of targeted strategies based on research insights, including target segmentation and goal setting. Creative conceptualization: ideation and design of creative concepts that effectively communicate the message to the identified target audience. Production: practical implementation of creative elements, which can range from digital content to video productions and print materials. Media planning and buying space: selection of the most suitable channels (***) and negotiation for buying advertising space. Distribution and implementation: campaign execution across selected channels, ensuring message consistency across all platforms. Data monitoring and analysis: real-time data collection and analysis to assess campaign effectiveness, enabling timely adjustments. Evaluation and feedback: review of post-campaign results to assess success against objectives and collection of feedback for future improvements.

3.3 The main actors

A list of the main players active in the advertising industry in Italy is proposed below:

Advertising agencies

Teads Italia s.r.l: positions itself as a global media platform focused on innovation and diversity, having gathered a team of more than *,*** people from various cultures and backgrounds. The company places a strong emphasis on creativity, constant learning and evolution, maintaining a work environment that values ideas regardless of their origin. Teads fosters a corporate culture that encourages personal growth, constructive communication and open collaboration, while supporting quality journalism through its business practices.

Hearts&Science s.r.l: is a global marketing agency that focuses on creating emotional connections through large-scale media. Founded in New York in **** as a data-driven marketing agency, it was designed to rethink traditional media processes. This new approach has led to significant wins with clients, surpassing $* billion in media spend, and allowed the agency to grow rapidly, reaching more than *** employees within the first ** months. Hearts & Science also enjoys early global successes in Australia in ****. The agency dives deep into data to deliver the right message to consumers at the right time, with global teams that are redefining the future of media

Starc Om Italia s.r.l: ...

4.1 Advertising agency: what kind of work?

Working in an advertising agency offers different types of jobs, which can then lead to different professional figures. The main ones are:

Account Manager: is a figure who manages clients in the post-sales phase, also manages the advertising budget and accounting of the agency.

Account Executive: is a figure who maintains contact with clients, coordinates the work of the agency. In fact, it is this figure who oversees the creation and organization of the agency in order to ensure the launch of the advertising campaign desired by the client.

Strategic Marketing Director: is a figure who coordinates the team of technicians and experts who regulate the activity of promoting the client's service or product.

Strategic Planner: is a figure who is in charge of researching the market and its trend so that the client who wishes to advertise a product can have in mind all the essential elements for the commercialization of the product.

Media Planner: is a figure who is in charge of studying the best platforms for the advertised product: where, when, how, with what medium... also keeps an eye on the budget allocated to the advertising campaign.

Art Director and Copywriter: these are two essential figures together: they ...

4.2 How to open an advertising agency

To practice in the world of advertising there are no specific educational requirements required by law, however, for a functioning and successful business it is advisable to have certain characteristics, for example:

Follow an appropriate educational background (***) Keep up to date (***) on digital media Know the industry well and have contacts to promote the business

Requirements:

First of all, there is a bureaucratic path to follow, as with any business. The Ateco code under which companies in this sector are registered is **.**.*.

Then, the main steps, to be followed with an accountant or other competent figure, are:

Opening a VAT number Registration in the commercial register at the Chamber of Commerce Application to the municipality for the opening of a new business, SCIA Opening of an Inps and Inail position (***)

Note: In the case of also opening a premises, an application must be submitted to the referring ASL.

Next steps:

After completing the bureaucratic steps, a very detailed business plan must be in place to operate a business. Pursuant, one must understand the prices charged by the industry to remain competitive with other businesses. Then, in the world of advertising, it is important to stay up-to-date with the latest news, trends, ...

4.3 The prices charged

Advertising costs can vary greatly depending on several factors, among them are:

The type of advertising: for example, digital advertising may have different costs than traditional advertising; similarly, costs may vary depending on whether you choose to advertise in newspapers, magazines, radio, television, social media, or search engines. The target audience: targeting a larger audience or an audience in a specific geographic area can affect the cost. The frequency of the advertisement: how often the advertisement is displayed or broadcast can influence the cost. The quality and production of the ad: high-quality ads that require professional production may cost more. The season or time of day: advertising may cost more during certain times of year or times of day when demand is high.

To calculate an advertising budget, it is important to consider the objective of the advertising, the desired return on investment, and the company's overall budget. Some of the key steps in setting the advertising budget are:

Define the goals: these might include increasing brand awareness, attracting new customers, or increasing sales. Know the Costs and Marginality: it is essential to know what marginality is associated with the product/service you intend to advertise. Know the Customer Lifetime Value ...

4.4 New supply trends

The introduction ofartificial intelligence (***) of **.* percent from **** to ****. This growth highlights the crucial role of AI in shaping the future of advertising and marketing.[***]

Global artificial intelligence market in the advertising industry World, ****-****, in millions of USD (***) Grand View Research

5.1 Regulatory framework

The Consumer Code

Enacted by Legislative Decree No. *** of September *, ****, establishes the rules that must be complied with for consumer protection, including those concerning online marketing and sales activities. In particular, the Consumer Code prohibits unfair and deceptive business practices, such as misleading or aggressive advertising, and guarantees consumers the right to withdraw from a distance or off-premises contract within ** days of delivery of the product.

The Data Protection Regulation (***)

This European Regulation ****/***, published on May *, **** in the Official Journal of the Union, establishes rules for the collection, processing, and storage of consumers' personal data. The GDPR requires data controllers to obtain users' explicit consent for the processing of their personal data and guarantees them the right to access, rectify, and delete data.

The ePrivacy Directive on Cookies

the European legislation to ensure data privacy in the European Union, enacted in ****, relates to the processing of personal data and the protection of privacy in the electronic communications sector. However, because it is a directive and not a law, it has had different legal implementation at the national level from country to country. In Italy, the Garante per la protezione dei dati personali has issued some guidelines that set out how consent ...

6.1 Segmentation of actors

• Teads Italia s.r.l
• Hearts&Science s.r.l
• Starc Om Italia s.r.l
• Publicis s.r.l
• Pomilio Blumm s.r.l
• Pardgroup s.p.a
• Incentive Promomedia s.r.l
• Dentsu Tech&Services s.r.l