digital growth - WORLDEF

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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Digital Growth 5 Key Moves Powering Malaysia’s AI Economy

Malaysia is accelerating its transition toward an AI-powered digital economy, backed by strong government policy, rising investments, and ecosystem-wide collaboration. The country’s long-term ambition is clear: to position itself as a leading regional hub for artificial intelligence and digital innovation by 2030.

At the core of this transformation is the National AI Action Plan 2026–2030, designed to embed AI across governance, industry, and society. The initiative aligns with Malaysia’s broader MyDIGITAL blueprint, which aims to create a high-income, digitally enabled economy powered by advanced technologies.

AI as a Catalyst for Economic Growth

Malaysia’s digital economy is already showing strong momentum. The country has secured tens of billions in digital investments, driven largely by AI, cloud computing, and data infrastructure. These investments are expected to generate tens of thousands of high-value jobs, reinforcing Malaysia’s role as a regional tech hub.

Government-backed programs are also ensuring that businesses, especially SMEs, can adopt AI solutions to improve productivity and competitiveness. Financial incentives, grants, and tax benefits are being rolled out to accelerate adoption at scale.

Building a Sovereign and Trusted AI Ecosystem

A key pillar of Malaysia’s strategy is trust and governance. Authorities are strengthening data protection laws, cybersecurity frameworks, and AI governance policies to ensure responsible innovation.

Initiatives such as the development of a Sovereign AI Cloud aim to keep data and AI operations within national borders, ensuring security while enabling large-scale deployment of AI technologies.

At the same time, Malaysia is investing heavily in local infrastructure, including data centres and AI platforms, to support domestic innovation and reduce reliance on external systems.

From Policy to Real-World Implementation

Malaysia is moving beyond strategy into execution. Programs like the Government Innovation Initiative (GII) are translating real-world challenges into deployable AI solutions, prioritising locally developed technologies and scalable applications.

Public sector transformation is also underway, with efforts to build an AI-augmented government that uses automation and data-driven decision-making to improve services and efficiency.

Positioning Malaysia as ASEAN’s AI Hub

With sustained investment, strong governance, and a growing talent pool, Malaysia is positioning itself as a competitive AI hub in Southeast Asia. The combination of public-private partnerships, infrastructure development, and policy alignment is creating a scalable ecosystem for innovation.

As global demand for AI solutions continues to rise, Malaysia’s integrated approach, linking policy, infrastructure, and industry adoption, could serve as a model for emerging digital economies.

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Uzbekistan Targets 11% E-Commerce Share in 2026 as Digital Growth Accelerates

Uzbekistan sets new e-commerce growth target

Uzbekistan is aiming to increase the share of e-commerce in its retail trade to 9–11%, as part of a broader strategy to accelerate digital transformation and modernize its economy.

The target was outlined during a government meeting led by President Shavkat Mirziyoyev, where new proposals were presented to strengthen the country’s e-commerce ecosystem.

Market shows strong growth momentum

Uzbekistan’s e-commerce sector has already experienced rapid expansion in recent years.

The market has grown nearly 20 times over the past eight years, reaching an estimated value of $1.3 billion, reflecting increasing consumer adoption and digital infrastructure development.

Despite this progress, e-commerce currently accounts for only around 4–4.6% of total retail trade, significantly below the global average of approximately 22%.

New strategies focus on infrastructure and customs reform

To support further growth, the government is focusing on improving logistics and trade processes.

A key priority is the development of bonded warehouse infrastructure, which allows imported goods to be stored under customs control with deferred payment of duties and taxes.

In addition, authorities are considering a system where customs duties are paid at the point of sale. This approach is expected to simplify trade operations and improve the investment climate.

Investment potential and global alignment

Officials estimate that the proposed reforms could attract up to $500 million in investment, supporting the expansion of digital commerce and related infrastructure.

Similar customs and logistics models are already widely implemented in countries such as China, the UAE, the United Kingdom, and Germany, indicating Uzbekistan’s alignment with global best practices.

Strengthening the digital economy

The initiative forms part of Uzbekistan’s broader efforts to develop its digital economy and increase the role of online commerce in overall economic activity.

With a young and increasingly connected population, the country is positioning e-commerce as a key driver of future growth, while continuing to invest in infrastructure and regulatory improvements.

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