European Retail Media Surpasses €13 Billion as Digital Ad Market Hits Record High in 2025
As Europe’s digital advertising market settles into a more sustainable growth cycle, retail media is emerging as one of the industry’s biggest winners. Advertisers increased spending on retail media by 16.7% in 2025, lifting the segment to €13.3 billion and pushing it beyond 10% of total digital advertising investment in Europe for the first time. The milestone underscores how retailers are becoming increasingly important advertising platforms alongside traditional digital channels.
According to the latest IAB Europe AdEx Benchmark Report, overall digital advertising expenditure across 30 European markets climbed 10.5% year over year to €131.1 billion. While the pace slowed from the exceptional 16% growth recorded in 2024 and the post-pandemic surge of 2021, every market covered by the report still expanded, highlighting the continued resilience of Europe’s digital economy.
Retail Media Outpaces the Broader Market
Retail media significantly outperformed the wider advertising market, reflecting brands’ growing appetite for advertising closer to the point of purchase. By placing sponsored products and display ads on retailers’ websites, marketplaces and shopping apps, advertisers gain access to valuable first-party consumer data while measuring campaign performance more effectively.
Crossing the 10% share of Europe’s digital advertising market marks a notable milestone for retail media. The channel has rapidly evolved from a complementary marketing tool into a core component of omnichannel advertising strategies, as retailers increasingly monetize their digital ecosystems and brands seek higher returns on advertising spend.
Video and Social Continue to Drive Digital Growth
Retail media was not the only standout performer. Video advertising remained the fastest-growing major format, rising 19.6% to €34 billion. For the first time, video represented more than half of all display advertising investment across Europe, reflecting continued consumer demand for video-first content.
Social advertising also posted robust results, growing 19.2% to €35.5 billion, with social video delivering the strongest performance among all advertising formats. Together, these trends illustrate how advertisers continue shifting budgets toward highly engaging, performance-oriented digital channels.
UK Maintains Leadership in European Advertising
The United Kingdom remained Europe’s largest digital advertising market, attracting €46.9 billion in investment during 2025. Germany ranked second with €21.6 billion, followed by France at €12.7 billion. Collectively, the three markets accounted for roughly 62% of total European digital advertising spend, reinforcing their dominant position in the region’s advertising landscape.
A Maturing but Expanding Market
The latest figures suggest that Europe’s digital advertising industry is entering a more mature phase of growth rather than slowing down. While overall expansion has normalized compared with the extraordinary gains seen after the pandemic, investment continues to migrate toward channels that combine measurable performance, first-party data and commerce capabilities. Retail media’s rapid rise illustrates this shift, positioning retailers as increasingly influential players in the future of digital advertising across Europe.
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