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IAB Europe: retail media crosses 10% of digital ad spend as market grows 10.5% in 2025

Industry reports

07 August 2026

IAB Europe: retail media crosses 10% of digital ad spend as market grows 10.5% in 2025

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IAB Europe's 20th annual AdEx Benchmark report, covering 30 European markets, found that Europe's digital advertising market grew 10.5% in 2025 to reach €131 billion, with retail media growing 16.7% to €13.3 billion and surpassing 10% of total digital ad spend for the first time.

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IAB Europe

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EU-27

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Academic / Research and VET Institutions

Company with 250 or more employees

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Industry Associations and Chambers of Commerce

Media / Journalist Organisations

SMEs (a company with less than 250 employees)

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    • Retail

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According to the report, growth was led by video-led formats and retail media. Video advertising grew 19.6% to €34.0 billion, now accounting for more than half of all display investment in Europe, while social advertising grew 19.2% to €35.5 billion, driven particularly by social video, the fastest-growing format in this year's edition. Display advertising overall grew 12.5%, with paid search and classifieds growing 8.8% and 6.5% respectively.

Retail media, spending on advertising placed on retailer websites, apps and platforms, continued to outpace the broader market, reflecting the growing role of retailers as media owners monetising first-party shopper data and on-site traffic. The full report includes market-by-market breakdowns and format-level growth analysis across the 30 European markets covered.

#DataDrivenRetail #DigitalRetail #RetailInnovation

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IAB Europe AdEx Benchmark 2025 Report
English
(1.46 MB - PDF)
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