Vertical video: the definitive turning point for SMEs and retail

A paradigm shift, not a passing fad

For years, 16:9 horizontal video was the reference format for every digital production. It was the TV standard, then YouTube's, then the standard for online ad campaigns. But something has changed, and there's no going back.

As The Verge documented in a recent in-depth analysis, each social platform originally had a distinct identity. YouTube was the home of creators. Instagram was about photos. Netflix aspired to be on-demand HBO. Facebook was about relationships. Today, they are all converging on a single format: 9:16 vertical video.

This isn't a cosmetic change. It's a deep restructuring of how people consume media. Anyone working in digital marketing needs to update their mental maps before they even update their content.

The numbers redrawing the market

The 2026 data paints an unmistakable picture. According to Pew Research, more than 70% of mobile video consumption happens in vertical mode. YouTube Shorts has also passed 70 billion daily views worldwide.

In Italy, the picture matches the global trend. TikTok keeps a high penetration among 18-44 year olds. Instagram Reels delivers the highest organic engagement rate of all the formats on the platform. As a result, companies that keep producing only horizontal content are operating with a significant algorithmic handicap.

The advertising data is just as relevant. Vertical video campaigns consistently show lower CPMs and higher CTRs than horizontal formats on mobile. So it's not only about organic visibility: the impact bears directly on ad spend efficiency.

According to Gartner, by 2027 vertical video will account for over 60% of digital video advertising investment among European mid-market companies. This takes the trend well beyond social media, reaching structured brand awareness and lead generation strategies too.

Why platforms chose vertical

The shift to 9:16 is no accident. It follows a clear economic logic. Smartphones are the first screen for most Italian users. Holding them vertically is the natural, instinctive behavior. Platforms have simply followed the anatomy of the user.

TikTok normalized this format starting in 2019-2020. Instagram then launched Reels as a direct response. YouTube added Shorts. Even streaming platforms are introducing vertical sections for short-form content. What looked like a niche innovation has become infrastructure.

There's also an algorithmic dimension to consider. Platforms reward native content. A horizontal video cropped to fit vertical is recognized as non-native by distribution algorithms. As a result, organic reach takes a measurable hit.

What it means in practice for Italian B2B SMEs and retailers

Moving to vertical video isn't neutral from an operational standpoint. For an Italian SME with limited resources, it means concrete decisions on budget, workflow and in-house skills. Let's look at the two main segments separately.

Retail: an immediate opportunity

For retail companies, vertical video is a direct conversion tool. Formats like TikTok Shopping and Instagram Reels with product tags can shorten the funnel significantly. Fashion, food, home furnishings and beauty in particular see the highest conversion rates on these formats.

But production has to feel genuine. Overly polished content performs worse than authentic video, even when the technical quality is lower. This is a real competitive advantage for SMEs over big brands, which often struggle to produce content that feels spontaneous.

SHM Studio's digital marketing services include editorial planning for vertical formats, with a specific focus on consistency between organic content and paid campaigns. Our team also helps define the visual and narrative tone best suited to the retail segment.

B2B: territory still up for grabs

In B2B, vertical video is still underused. Many companies see TikTok and Reels as consumer channels, unsuited to professional communication. In fact, the data shows that business decision makers watch vertical content in their private lives and carry those habits over into their professional research.

LinkedIn itself has introduced vertical video in the feed. The format is now entering the B2B ecosystem par excellence. Companies that start producing vertical content for LinkedIn today gain a significant first-mover advantage.

To explore advertising opportunities on LinkedIn, take a look at the LinkedIn campaigns run by SHM Studio, which increasingly integrate vertical video into B2B lead generation strategies.

What nobody tells you about the cost of the transition

There's one aspect that's rarely discussed openly: the transition to vertical video has a real cost. It's not just a matter of turning your phone sideways. It means rethinking your creative pipeline, briefs, approval processes and editing tools.

First of all, many existing video assets can't be reused. Cropping from 16:9 to 9:16 often gives disappointing results, both aesthetically and algorithmically. So investing in new production is almost unavoidable.

Second, in-house skills need updating. A social media manager trained in photography and static graphics can't automatically run effective vertical video production. Training or outside support becomes a budget line to plan for.

Finally, there's the question of consistency across channels. An effective vertical video strategy has to be integrated with your SEO strategy, your Google Ads campaigns and your overall web presence. Otherwise you risk creating vertical content that doesn't connect with the rest of your digital ecosystem.

The strategic view: where vertical video stands in 2026-2028

Vertical video is no longer an experimental channel. It has become distribution infrastructure. Just as with mobile-first web design between 2012 and 2016, those who adapt first build a lasting competitive advantage.

Projections for 2027-2028 point to further expansion. Video streaming on mobile devices will keep growing. Platforms will invest even more in native vertical creation tools. And generative AI will make vertical video production increasingly accessible, even for small teams.

At SHM Studio, we see the most advanced Italian SMEs already building hybrid workflows: vertical content produced natively for social, then adapted to horizontal only when strictly necessary for specific contexts like corporate presentations or traditional display campaigns.

If you want to go deeper on integrating these formats into a structured content strategy, the copywriting and content team at SHM Studio can help you define a video editorial plan aligned with your business goals.

Metrics to watch and mistakes to avoid

Adopting vertical video without a proper measurement system means flying blind. There are specific metrics to track if you want to understand how well your vertical content really performs.

The main ones are: completion rate (the percentage of users who watch the video to the end), swipe-away rate (drop-off in the first 3 seconds), save and share rate, and, for shoppable formats, click-to-product rate. These metrics are more predictive than a simple view count.

Here are the most common mistakes we see among Italian SMEs:

• Repurposing existing horizontal content instead of producing native vertical content.
• Ignoring the first 2-3 seconds, which are decisive for algorithmic retention.
• Not optimizing subtitles, which are essential because most vertical videos are watched without sound.
• Treating all vertical channels as identical and ignoring the differences in tone of voice between TikTok, Reels and YouTube Shorts.
• Not integrating vertical video into your overall AI and digital marketing strategy.

To dig deeper into these topics or get an assessment of your video strategy, you can contact the SHM Studio team for an initial consultation.

Toward an integrated vertical video strategy

Vertical video has won. The question is no longer whether to adopt it, but how to do it effectively and with strategic consistency. For Italian SMEs and mid-market companies, this means tackling a transformation that touches creativity, technology, processes and measurement all at once.

Still, complexity shouldn't paralyze you. A gradual approach, starting with one or two priority channels, building in-house skills step by step and measuring results rigorously, works better than a sudden, total overhaul.

Exploring SHM Studio's full range of web development, SEO and digital marketing services can help you build a digital ecosystem where vertical video isn't an isolated add-on, but an integrated part of a coherent strategy. You'll find all our in-depth articles on these topics on the SHM Studio blog.