IAB Europe’s AdEx Benchmark 2025 Report: European Digital Advertising Market Records 10.5% Growth to Reach €131 Billion

The twentieth edition of IAB Europe’s AdEx Benchmark Report reveals continued growth across Europe’s digital advertising market, with video-led formats and Retail Media driving momentum.

Brussels, Belgium, 7th July, 2026 - IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, today revealed the findings of its 2025 AdEx Benchmark Study at a dedicated event in London. 

The report reveals that European digital advertising spend grew by 10.5% in 2025, reaching €131 billion. Now in its twentieth year, the AdEx Benchmark Report brings together data from 30 national markets, providing the industry’s most comprehensive and harmonised view of digital advertising investment across Europe.

Building on the strong growth recorded in 2024, the latest data shows that Europe’s digital advertising market continued to expand in 2025, despite ongoing macroeconomic and geopolitical pressure and differing levels of market maturity across the region. The findings reinforce advertisers’ continued commitment to the channels and formats shaping Europe’s digital advertising ecosystem.

Growth was concentrated in video-led formats, Connected TV (CTV), social video and Retail Media, reflecting changing patterns of media consumption, the increasing importance of commerce-led advertising, and continued demand for measurable, high-impact digital environments. While established categories such as paid search and classifieds remained in growth, they lagged the wider market, highlighting a shift in where momentum is building across the ecosystem.

Key Growth Drivers:

• Video-led formats accelerate: Video was a standout growth area in 2025, growing by 19.6% to reach €34.0 billion. For the first time, it now accounts for more than half of all display investment in Europe. Social video was the fastest-growing format in this year’s report, increasing by 25.7% and reinforcing advertiser demand for engaging, high-impact video environments across screens. 

• Social remains a major growth channel: Social advertising continued to grow strongly in 2025, increasing by 19.2% to reach €35.5 billion. Within this, social video was a key driver, highlighting the ongoing shift towards short-form, video-led and platform-based advertising formats.

• Retail Media strengthens its role in the ecosystem: Retail Media grew by 16.7% to €13.3 billion* in 2025, reinforcing its position as one of Europe’s most important emerging growth channels. Its continued momentum reflects advertiser demand for first-party data, commerce-led environments and stronger links between media investment and measurable business outcomes.

• Established channels remain resilient: Display advertising grew by 12.5%, while paid search and classifieds grew by 8.8% and 6.5%, respectively. 

Market Highlights:

• Western Europe remains steady: More mature Western European markets, including Spain, France, Italy and the Netherlands, saw growth of around 10%, showing continued advertiser investment in established digital advertising ecosystems.

• Nordic and Baltic markets show a flatter picture: Nordic and Baltic markets were closer to flat growth in 2025, reflecting more varied market conditions and a mixed regional picture across Europe.

Commenting on the findings, IAB Europe’s Chief Economist, Daniel Knapp, said, “Europe’s digital advertising market added €12.5 billion in 2025, growing 10.5% to reach €131.1 billion. Against a backdrop of sluggish GDP growth, trade policy uncertainty and cautious consumers, this points to a structural shift. Digital advertising is increasingly moving beyond a communications expense to become sales infrastructure, shelf space and shopfront at once.

“Two milestones in this year’s data show where the market is heading: video now accounts for more than half of all display investment in Europe for the first time, while Retail Media has passed 10% of total digital ad spend. Commerce and content are converging, measurability is deciding where the next euro goes.”

The full AdEx Benchmark Report 2025 provides a detailed view of digital advertising investment across 30 European markets, including market-by-market breakdowns, format-level growth and analysis of the trends shaping Europe’s digital advertising market.

Download the full report here.

*Retail Media includes on-site (retailer-owned and operated) search and display formats 

NOTES FOR EDITORS

Please note that this edition introduces an inflation-adjusted growth view for high-inflation markets, developed with World Bank and IMF price data. On this basis, European growth stands at 9.4% in real terms against 10.5% nominal, and Turkey's 37% headline growth translates into roughly 2% real expansion. 

About IAB Europe

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Through its membership of National IABs and media, technology and marketing companies, its mission is to lead political representation and promote industry collaboration to deliver frameworks, standards and industry programmes that enable businesses to thrive in the European market.

For more information, please contact:

Lauren Wakefield
Marketing & Communications Director, IAB Europe
wakefield [at] iabeurope.eu