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 go-to format for any digital production. It was the TV standard, then YouTube's, and finally the standard for online ad campaigns. However, something has changed irreversibly.

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

This isn't just a surface-level trend. It's a major shift in how people consume media. So, digital marketers need to update their mindset before they even touch their content.

The numbers reshaping the market

The data available for 2026 paints a clear picture. According to research by Pew Research , over 70% of mobile video consumption happens in vertical mode. Plus, YouTube Shorts has surpassed 70 billion daily views globally.

In Italy, the picture aligns with the global trend. TikTok maintains high penetration among the 18-44 age group. Instagram Reels generates the highest organic engagement rate among all formats available on the platform. Consequently, companies that keep producing only horizontal content are operating with a significant algorithmic handicap.

Also relevant is the ad data. Vertical video campaigns consistently show lower CPMs and higher CTRs compared to horizontal formats on mobile. So, it's not just about organic visibility: the impact directly affects ad spend efficiency.

According to Gartner , by 2027 vertical video will represent over 60% of digital video advertising investments in European mid-market companies. This data projects the phenomenon well beyond the realm of social media, also impacting structured brand awareness and lead generation strategies.

Why platforms chose vertical

The convergence toward the 9:16 format is no accident. It responds to a precise economic logic. Smartphones are the primary screen for most Italian users. Holding them vertically is natural and spontaneous behavior. Therefore, platforms simply followed the user's anatomy.

TikTok normalized this format starting in 2019-2020. Later, Instagram launched Reels as a direct response. YouTube integrated Shorts. Even streaming platforms are introducing vertical sections for short content. So what looked like a niche innovation became infrastructure.

Besides this, there is an algorithmic side to consider. Platforms reward native content. A horizontal video cropped and fitted for a vertical format gets flagged as non-native by the distribution algorithms. As a result, organic reach takes a noticeable hit.

The practical implications for Italian B2B and retail SMEs

Moving to vertical video isn't a walk in the park behind the scenes. For a small Italian business with tight budgets, it means making tough calls on spending, workflows, and team skills. Let's break down the two main areas separately.

Retail: an immediate opportunity

For retail brands, vertical video is a straight shot to sales. Formats like TikTok Shopping and Instagram Reels with product tags make the sales funnel way shorter. Fashion, food, home decor, and beauty are seeing the highest conversion rates on these formats.

Still, production has to feel genuine. Overly polished content actually performs worse than authentic videos, even with lower tech quality. This is a real edge for small businesses over big brands, which often struggle to put out stuff that feels spontaneous.

The digital marketing services by SHM Studio include editorial planning for vertical formats, with a specific focus on consistency between organic content and paid campaigns. Furthermore, the team supports the definition of the most suitable visual and narrative tone for the retail segment.

B2B: the territory still to be conquered

In the B2B world, vertical video is still underused. Many companies see TikTok and Reels as consumer channels, unfit for professional talk. Instead, data shows that business decision makers watch vertical content in their private lives and bring these habits into their work research too.

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

To learn more about advertising opportunities on LinkedIn, it is useful to explore the LinkedIn campaigns managed by SHM Studio, which increasingly integrate the vertical video format into B2B lead generation strategies.

What nobody tells you about the cost of the transition

There is one aspect that is rarely discussed openly: the shift to vertical video comes with a real cost. It is not just about turning your phone sideways. It involves rethinking the creative pipeline, briefs, approval processes, and editing tools.

First of all, you have to consider that many existing video assets cannot be reused. Cropping from 16:9 to 9:16 often leads to disappointing results, both aesthetically and algorithmically. Therefore, investing in new production is almost inevitable.

Secondly, in-house skills need a refresh. A social media manager trained in photography and static graphics isn't automatically equipped to handle effective vertical video production. So, training or outside help turn into budget items you've got to plan for.

Finally, there's the issue of cross-channel consistency. An effective vertical video strategy must be integrated with the SEO Strategy , with the google ads campaigns and with the overall web presence. Otherwise, the risk is creating vertical content that doesn't connect with the rest of the company's digital ecosystem.

Strategic reading: where the vertical format stands in 2026-2028

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

Projections for 2027-2028 point to further expansion. Mobile video streaming will keep growing. Platforms will invest more in native vertical creation tools. Also, integration with generative AI will make producing vertical videos much easier even for small teams.

We at SHM Studio we observe that the most advanced Italian SMEs are already building hybrid workflows: vertical content produced natively for social, adapted horizontally only when strictly necessary for specific contexts like corporate presentations or traditional display campaigns.

For those who want to dive deeper into how to integrate these formats into a structured content strategy, the team at copywriting and content of SHM Studio can support the definition of a video editorial plan that aligns with business goals.

The metrics to monitor and the mistakes to avoid

Adopting vertical video without a proper measurement system means flying blind. There are specific metrics to monitor to evaluate the real effectiveness of vertical content.

The main ones are: completion rate (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.

Among the most common mistakes we see in Italian SMEs:

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

To dive deeper into these topics or request an evaluation 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. It is no longer a question of whether to adopt it, but how to do so 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.

However, complexity shouldn't paralyze you. A step-by-step approach — starting with one or two priority channels, building internal skills gradually, and measuring results carefully — works way better than a sudden, total makeover.

Explore the full offering of web development , SEO and Digital marketing by SHM Studio can help you build a digital setup where vertical video isn't just an afterthought, but a seamless part of your overall strategy. You can find all our deep dives on these topics in the SHM Studio blog .