Agencies Report 68% Increase in Programmatic Buying
CTV, Retail Media, and AI Drive Future Growth
Brussels, Belgium, 6th November 2024 - IAB Europe, the leading European-level industry association for the digital advertising ecosystem, has today released its highly anticipated 2024 Attitudes to Programmatic Advertising Report. Now in its 10th year, the report reveals the current state of programmatic adoption, key drivers and barriers, and emerging trends across Europe’s digital advertising landscape.
Compiled by IAB Europe’s Programmatic Trading Committee, this survey gathered insights from 254 respondents, including advertisers, agencies, publishers, and ad tech vendors across 31 markets. Respondents operate with both pan-European and global remits, with over half of them managing annual advertising budgets exceeding €1 million. This comprehensive study provides a crucial benchmark for the buy- and the sell-side of the industry, helping to define the evolving strategies that will shape future investment and operations.
As the European digital ad market, valued at €96.9 billion, continues its shift toward programmatic-first approaches, the survey highlights a steady growth in programmatic spending across display, mobile, video, and emerging channels such as Connected TV (CTV) and Retail Media.
Key Findings:
Programmatic Investment Continues to Rise Amid Evolving Channel Strategies
Although growth in display programmatic investment is maturing, 27% of advertisers now allocate over 81% of their display budgets programmatically, with agencies leading the shift, reporting a 68% increase in programmatic buying. Mobile also saw a rise in agency-side programmatic investment, reaching 61%.
CTV and Retail Media are becoming pillars of programmatic growth, with 40% of advertisers buying CTV programmatically. Agencies also report a significant rise in Retail Media investments, signaling new strategies in this maturing programmatic landscape.
Cadi Jones, SVP Europe at Index Exchange, a contributor to the report highlighted CTV as a pivotal growth area, saying, "The rise of Connected TV is transforming the programmatic advertising landscape. With an increasing number of viewers opting for streaming platforms, we’re seeing a major change in how advertisers connect with their audiences. As we continue to innovate in this space, leveraging programmatic solutions will be key to unlocking the full potential of CTV, driving both engagement and performance for the industry at large."
AI and Addressability Lead Growth Areas for 2024 and Beyond
AI and CTV top the list of growth areas for advertisers and agencies, with 36% citing AI as a key growth driver. As the industry prepares for a post-cookie world, first-party data and contextual targeting remain focal strategies for driving audience insights.
Challenges with Media Quality, Brand Safety, and Privacy
Rising media quality concerns and the phase-out of third-party cookies highlight a significant shift for the buy side, with 31% of advertisers prioritising brand safety and media quality as key barriers to investment. Agencies and publishers are increasingly prioritising transparency and media quality as essential to maintaining audience trust.
Quality assurance is a top priority, with advertisers calling for stronger standards in brand safety, ad fraud prevention, and media reliability to build confidence for sustainable growth. Additionally, data practices are evolving toward first-party data, but industry readiness for the shift from third-party cookies remains mixed.
Sustainability Gains Momentum Despite Economic Pressures
Sustainability remains a strategic focus, though progress varies across stakeholders. While 81% of agencies prioritise sustainability compared to 60% of advertisers, commitment among advertisers has declined by 20% from previous years. Only 20% of advertisers report concrete progress towards Ad Net Zero (ANZ), indicating an industry-wide need for better alignment on sustainability standards. Despite this, innovation in data science and machine learning is driving carbon transparency and efficiency, setting the stage for more sustainable programmatic advertising in a privacy-first environment.
This year’s report underscores the evolution of programmatic advertising across Europe over the last 10 years, as it becomes increasingly sophisticated and integral to advertisers’ strategies. With the industry set to confront challenges surrounding privacy, data, and sustainability, the findings provide critical insights that will drive future programmatic growth and investment.
Emmanuel Josserand, Sr Dir, Brand, Agency and Industry Relations, FreeWheel, who also contributed to the report, commented on the sustainability findings, “It’s encouraging to see that, compared to last year, environmental sustainability is less of a barrier to programmatic investments and continues to be a focus for all media players. There is a lot of great work being done and initiatives, such as the IAB Europe’s sustainability committees and working groups, and we should continue to engage in constructive dialogues and action plans, making sustainability a seamless part of our programmatic ecosystem. This willingness to make progress, despite challenges, will ultimately lead to a more sustainable future for all’’.
The full report with accompanying graphs can be downloaded here.
We are pleased to announce the launch of IAB Europe Training, an educational initiative designed to provide training courses for digital advertising professionals on thematic areas where IAB Europe and its expert working groups are active and drive the uptake of IAB Europe standards. Developed by industry-leading experts from IAB Europe, our courses will equip you with the skills and knowledge you need to excel in the world of digital.
Crafted to meet the needs of professionals at all levels, from beginners to the more advanced, our courses will offer accessible, supportive content in an engaging and dynamic learning environment. They are intended to be distinct from, and complementary to, courses offered by IAB Europe’s member national federations.
Key Features include:
Expert-Led Courses - Our courses are developed and delivered by IAB Europe professionals, who offer deep insights and practical knowledge to ensure you gain key skills that can be applied to your work immediately.
Engaging Learning Experience - We offer full access to the IAB Europe Training learning platform, where students can explore reading materials tailored to the course content. In addition, our live sessions provide an opportunity to engage directly with the training material, ask questions, and gain real-time insights. These combined resources ensure that digital advertising professionals receive the support they need to navigate and excel in their learning journey confidently.
Bespoke Content - IAB Europe Training offers uniquely tailored content, covering the most up-to-date insights on key industry topics. Our training courses are refreshed quarterly, ensuring that they keep pace with the ever-evolving digital advertising landscape. Delivered by industry professionals to their peers, the courses are designed to address the specific, real-time needs of the sector, providing actionable knowledge when it’s needed most.
Initially, IAB Europe Training will offer training opportunities in Retail Media and Environmental Sustainability. By focusing on these relatively new and evolving topics, we aim to cover new ground in the digital advertising landscape and demonstrate a commitment to driving these initiatives forward.
Retail Media is one of the fastest-growing sectors within digital advertising, driven by the surge in e-commerce and the increasing value of first-party data. By focusing on Retail Media, the IAB Europe Training will address a key area where advertisers, brands, and publishers need guidance to effectively navigate new marketing strategies, technologies, and regulations.
Find out more about the Retail Media Course here.
As concerns about climate change and environmental degradation grow, digital advertising professionals are increasingly aware of the environmental impact of their work and are seeking action from their organisations to reduce carbon emissions. Through our sustainability training, we aim to enhance awareness within the digital advertising ecosystem and provide valuable insights that departments can implement to instigate transformative change and make a positive impact across the supply chain.
Find out more about the Environmental Sustainability in Digital Advertising Course here.
Whether you’re looking to suss out sustainability or raise your Retail Media a-game, our training programme is here to help guide you to digital advertising success. Join us at IAB Europe Training to elevate your expertise, stay ahead of industry changes, and become a master of the digital advertising world.
More information and registration for IAB Europe Training courses is now available on the IAB Europe Training website here.
You can also access our FAQs here.
IAB Europe Members and National IAB Members can enjoy an exclusive 10% discount.
If you have questions about the IAB Europe Training or would like to access the discount code, please email training@iabeurope.eu.
As Retail Media continues to proliferate the daily media and advertising news headlines, IAB Europe asked two core members of its Retail Media Committee about the importance of standardisation and how standards for Europe have been developed. The answers to these questions reflect a joint effort and combine the expertise of the contributors.
Contributors:
Maria Kristalinskaya, Head of Retail Media, Kleinanzeigen
Dirk Hahn, Executive Professional Retail Media, Schwarz Media
Marie-Clare Puffett, Industry Development & Insights Director, IAB Europe
Q1. What are the Retail Media Measurement Standards for Europe?
The Retail Media Measurement Standards were developed following consultations with retailers, and media buyers (brands and agencies) and cover the following areas:
IAB Europe also has measurement standards for digital in-store retail media out for public comment until the 1st of November.
Q2. Why are these Standards for Europe needed?
IAB Europe’s recent Attitudes to Retail Media survey found that approximately 60% of buyers cite the fragmentation of Retail Media Networks and the lack of standardisation as significant barriers. Measurement standards are therefore needed to provide:
Q3. How were these Standards developed?
The Retail Media Measurement Standards were initially developed following consultations with retailers, and media buyers (brands and agencies). The final Standards were produced following a public comment period between February and March 2024, where a wide range of industry stakeholders from across Europe provided feedback and insights to shape the final version.
The standards for media measurement are based on established IAB / MRC standards with additional metrics aligned to retail media networks in Europe.
Q4. How can the industry adopt and implement these Standards?
It is important that all stakeholders collaborate to drive the adoption of these standards. IAB Europe has just launched a new Retail Media Certification Programme to provide media networks with the opportunity to demonstrate the adoption of the standards. Education and training will also play an important part in the development of standard adoption within organisations.
We can also expect new standards to come into place with regular reviews and updates and for new growth areas for example in-store digital retail media.
Digital Marketing World Forum is thrilled to be partnered with IAB Europe!
As digital landscapes continue to shift, staying ahead of emerging trends and technologies is essential for marketing professionals. At DMWF Europe, held on 26-27 November 2024 at RAI Amsterdam, attendees will experience thought-provoking sessions that cover a spectrum of critical topics in digital marketing, including the latest in AI, marketing automation, omnichannel strategies, content innovation and more.
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This year’s agenda is packed with interactive panels and expert-led discussions that focus on actionable insights and advanced strategies for today’s dynamic market. Attendees will delve into how data, CRM, and social media insights can redefine engagement, while sessions like Digital Brand & Communication Strategy offer tools for building authentic, resonant brand identities. The agenda also includes forward-looking sessions on AI & Marketing Automation, designed to equip teams with ways to leverage AI for greater personalization and efficiency.
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Brussels, Belgium, 30th October - IAB Europe is pleased to announce the Beta test launch of the Retail Media Certification Programme, an industry-first initiative designed to set a new standard for transparency, fairness, and accountability in Retail Media measurement. This programme provides retailers with the opportunity to validate their adherence to industry standards, helping them demonstrate best practices to brands, agencies, and industry stakeholders alike.
The Retail Media Certification aims to be an industry-recognised benchmark, ensuring that certified retailers meet rigorous standards in both on-site and off-site Retail Media reporting. The certification process will include an independent audit, offering retailers a chance to showcase their leadership in measurement integrity.
Commenting on the new certification programme, IAB Europe’s CEO, Townsend Feehan said, “The launch of the Retail Media Certification Programme marks an important step towards creating a more transparent and accountable ecosystem for Retail Media measurement. By setting rigorous standards and working with independent auditors, we are enabling retailers to showcase their commitment to best practices and industry leadership. This programme is not just about certification; it's about elevating the entire Retail Media landscape.”
Jason Wescott, Global Head of Commerce Solutions at GroupM Nexus and Chair of IAB Europe’s Retail Media Committee also commented, "With the expansion of Retail Media, establishing trust and confidence through standardised measurement practices is crucial. The Retail Media Certification Programme marks a key step in ensuring transparent, consistent, and industry-aligned measurement. This initiative offers retailers a chance to stand out by committing to accountability and measurement integrity, which will help foster stronger collaboration with brands and agencies."
Casper Van-Wandelen, Retail Media Lead, Unilever, said, “I am very pleased with the new IAB Europe Certification Programme, as it marks a significant milestone in the industry’s development. It fosters credibility and trust, simplifies cross-retailer comparisons, and ensures advertisers receive reliable data.”
Certified retailers can benefit from a fairer, more transparent market by aligning with industry standards, enhancing reporting confidence, and ensuring Retail Media meets the same rigor as other digital investments.
Recognising the importance of other existing media certification programmes, IAB Europe and the Media Rating Council (MRC) have coordinated to align MRC accreditation of European RMN measurement providers to the requirements of the IAB Europe Retail Media Certification program. The programme is currently in its Beta phase, which allows IAB Europe and the independent auditors, including AAM, ABC, and CESP to fine-tune the process.
Full certification will launch in early 2025, beginning with retailers and expanding to other participants in the Retail Media ecosystem in 2026.
Retailers are encouraged to register their interest to be part of the programme. Early registrants will receive updates on the programme, and the certification process, and be among the first to apply for certification in 2025.
Find out more about the certification programme on the IAB Europe website here, view our FAQs here, and register interest to participate here.
IAB Europe welcomes the report on “The future of European competitiveness”, prepared by Mario Draghi, and its comprehensive analysis of the challenges and opportunities facing Europe’s competitiveness. The report outlines a much-needed path forward, emphasising the importance of innovation, digital transformation, and regulatory reforms to secure Europe’s position in the global economy. With European industries experiencing a radical digital transformation, we find ourselves at a pivotal moment in history. The Draghi report is clear: “The innovation gap is at the root of Europe’s slowing productivity growth”. To keep pace with global competitors like the US and China, the Draghi report is right to call for a shift in its approach to innovation and competitiveness.
In the context of weak economic growth, digital advertising has the potential to power Europe’s digital transformation and boost its innovation and competitiveness. Digital advertising has become an integral component of digital transformation initiatives in sectors such as retail. Retail Media advertising in Europe grew by 22% in 2023 alone, compared to the total ad market growth of 6%. To unleash this potential, we need stable and predictable regulation. We echo the report’s emphasis on streamlining existing legislation and ensuring regulatory convergence across Europe. Fragmented regulations, particularly in areas like data protection as highlighted by Draghi himself, create barriers to innovation and growth. Simplifying the regulatory environment will allow businesses, especially SMEs and mid-cap firms, to thrive by ensuring regulation is proportionate and fair from the outset while reducing compliance burdens and fostering innovation.
Furthermore, we believe that effective and harmonised interpretation of existing laws is crucial to ensure that businesses can operate with greater confidence across all Member States. To this end, actionable guidance should always come before enforcement action. It is also essential that national regulatory agencies be adequately resourced and that they recognise and support industry standards that enable compliance with existing rules, ensuring consistency while minimising complexity for companies.
Looking ahead, now it is the time for a policy reset. The Draghi report rightly calls for Europe to be bolder in its policy ambitions. The digital advertising industry supports the need for reforms to incentivise investments in innovative services and technologies that will drive the future growth of businesses in Europe. This includes embracing developments in artificial intelligence (AI), which present significant opportunities for the advertising industry to enhance efficiency and effectiveness. Leveraging AI could unlock new innovations and create competitive advantages for European businesses. To achieve this, we need pro-innovation, pragmatic legislation and institutional reform to minimize the complexities of existing regulations.
Recent initiatives from the European Commission continue to focus on introducing new layers of regulation for the digital advertising sector, even before the current legislation has been fully implemented. To support Europe's digital transformation, we believe a shift in approach is needed across all Commission services, with particular attention to the timing and sequencing of any new initiatives. This means improving collaboration and adherence to better regulation principles, which are essential to ensuring a stable and predictable regulatory environment.
In conclusion, IAB Europe fully supports the report’s vision for a more innovative, competitive, and digitally empowered Europe. This means promoting innovation, creating better products and services, and ultimately ensuring choice for European consumers and users online.
In this week's member guest blog post, we hear from Nick Welch, Head of Programmatic, EMEA at IAS, who shares effective tips on how to navigate MFAs and ad clutter, to improve digital advertising campaign efficiency and performance.
MFA, an acronym for Made-for-Advertising, describes a category of websites built on catchy headlines, clickbait, and controversial content to drive traffic and ad revenue. These sites inundate users with intrusive ads and pop-ups in a relentless pursuit of revenue.
MFA sites aren’t sources of fraudulent inventory, as per typical definitions. In fact, they actually do perform well against traditional ad metrics, like viewability and click-through-rate, so on the surface can check a lot of boxes for advertisers. However, once a brand’s campaign is appearing on MFA sites, the main issue becomes clear — MFA websites simply do not drive meaningful results and lead to wasted ad spend.
Though they have similar characteristics, there is a significant difference between MFA sites and “Ad Clutter”, and being able to distinguish between the two is important for advertisers who want to mitigate risk and maximise their campaign performance. The key distinction lies in their monetisation strategy.
Unlike MFA sites, which engage in ad arbitrage by buying traffic excessively in order to monetise it, Ad Clutter sites do not purchase traffic but may still inundate users with excessive advertisements. Though they may compromise user experience and brand perception, they do not engage in the same level of deceptive practices as MFA sites.
Distinguishing between MFA and Ad Clutter sites allows advertisers to tailor their strategies accordingly, mitigating risks and optimising campaign performance. By leveraging IAS’s MFA measurement and optimisation products, advertisers can identify and block MFA sites at scale, safeguarding their brands and maximising return on ad spend.
Though there are key differences, both MFA and Ad Clutter sites can be problematic for advertisers.
While MFA and Ad Clutter sites present a host of issues for advertisers, there are three reasons why they stand out as particularly detrimental to campaign success and brand integrity:
Global view of ad impressions on MFA
In an observational study conducted by IAS, we found the harsh truth behind MFA and Ad Clutter sites. First, we looked at how the rate of ads that end up on MFA sites varies globally.
The good news is that European sites for the most part fell below the global average of ad impressions on MFA sites, which is 3.84%. Looking at APAC, Japan hit the lowest global rate at 0.33%. MFA ad impressions in the Americas often lay above the global average, climbing as high as 5.21% in the U.S. and even reaching 10.61% in Mexico.
Vertical view of ad impressions on MFA
Ad impressions on MFA sites also varied quite a bit by vertical — but all verticals came in above the 3.84% global average in this study.
We observed that the lowest rate, 3.85%, belonged to advertisers in the automotive vertical, while CPG followed closely at 4.14%. Retail rounded out the top three at 4.71% — still almost an entire percentage point above the global average.
The government/non-profit/education, packaged together in this study, reached a high MFA rate of 7.21%. The travel vertical also experienced a surprisingly high MFA rate of 6.84%.
Conversions and cost efficiency tell an even bigger story
After dissecting global MFA ad impression rates by vertical, we wanted to understand how conversions really differ on MFA and Ad Clutter sites versus quality sites.
Conversion rates on quality sites were 174% higher than those on MFA sites. Plus, conversion rates on quality sites are 91% higher than conversion rates on Ad Clutter sites — showing a major difference in low-funnel campaign performance on quality sites versus MFA and Ad Clutter sites.
Cost per conversion (CPCV) data followed a similar story. CPCV rates on quality sites were 51% lower than on MFA sites, and 25% lower than those on Ad Clutter sites, rounding out the notion that, when it comes to MFA, advertisers don’t need to choose between quality and cost efficiency.
At IAS, through the fusion of advanced machine learning and real-time data analysis, our AI-powered model detects and blocks MFA sites at scale, empowering advertisers with control over their campaigns. Our MFA measurement and optimisation product supports the ANA’s definition of MFA and has been trained, and is routinely vetted against, Jounce Media’s widely adopted list of MFA domains, resulting in a pressure-tested solution for detecting and blocking MFA at scale.
When identifying sites as MFA or not, the fundamental question we want to answer is: is the site conducting ad arbitrage? To get to the bottom of this, we have to ask two key questions:
Our machine learning model then incorporates the Jounce and Sincera signals along with additional signals from IAS. If the majority of traffic coming to the site is paid and the primary purpose of the site is to deliver ads, then the model will flag the site as MFA.
The impact of MFA detection transcends conventional metrics. By avoiding MFA sites, advertisers can unlock greater campaign performance and maximise return on ad spend.
IAB Europe’s Industry Development & Insights Director, Marie-Clare Puffett, shares her thoughts on the need for standardisation in in-store Retail Media, the challenges buyers encounter due to fragmentation, and how rapid, widespread adoption of standardised practices can unlock the full potential of Retail Media for both brands and retailers.
Retail Media has become an indispensable channel for brands seeking to reach consumers at key decision-making moments. The rapid expansion of Retail Media Networks (RMNs), both online and in-store, reflects the growing significance of advertising within retail environments. However, despite its rapid growth, in-store Retail Media suffers from a fragmented ecosystem that lacks cohesive standards. A gap that is particularly problematic for media buyers, who are trying to navigate inconsistencies, and invest confidently in this channel.
In-store Retail Media helps influence consumers when they are closest to the point of purchase. From digital screens and shelf displays to interactive scanners, in-store advertising has the potential to reach audiences in highly relevant and engaging contexts. While data-rich environments and precise targeting often drive online Retail Media, in-store offers unique value by capturing consumer attention in physical retail spaces.
The absence of standards, however, has left the potential for scale and efficiency in this space largely untapped, with advertisers wary of inconsistent metrics, technological fragmentation, and operational challenges.
According to IAB Europe’s Attitudes to Retail Media Report, 60% of buyers report that fragmentation and lack of standardisation within RMNs are significant barriers to investment. Buyers face several hurdles in navigating the current ecosystem:
The faster the industry can adopt standardised approaches to measurement, ad formats, and reporting, the quicker both brands and retailers can unlock new advertising opportunities. Quick adoption of standards will enable more agile and adaptable marketing strategies, allowing retailers and advertisers to capitalise on evolving consumer behaviours in real time.
Without swift implementation, brands risk falling behind competitors who are already leveraging in-store Retail Media as a critical component of their omnichannel strategies. Speed matters not just for retailers but also for brands looking to enhance their return on investment (ROI) by making data-driven decisions based on clear, standardised metrics.
One of the most significant challenges for buyers is the inability to accurately measure the impact of in-store media campaigns. Unlike digital media (and online Retail Media as covered in IAB Europe’s Retail Media Standards here), where metrics such as click-through rates, impressions, attribution, and conversion rates are standardised, in-store media operates in a slightly grey area.
However, standardised measurement practices are essential for accurately assessing ROI, and would provide:
One of the most promising developments in the move toward standardisation is the collaborative release of the In-Store Retail Media Definitions and Standards by IAB Europe and the IAB. Together, we have created a unified set of standards that retailers and buyers can adopt across different markets, making it easier to implement Retail Media strategies globally.
By embracing consistency across regions, brands and retailers can achieve:
The rapid expansion of RMNs and the unique advantages of in-store Retail Media make it clear that this channel is poised for significant growth. However, this growth can't be fully realised without addressing the critical need for standardisation. By adopting consistent metrics, operational processes, and data-sharing frameworks, the Retail Media ecosystem can become a more navigable, scalable, and valuable channel for advertisers.
IAB Europe and the IAB’s In-Store Retail Media Definitions and Standards have been created to provide unified definitions, measurement guidelines, and best practices for ad formats and store zones, helping advertisers and retailers tap into the growing potential of in-store advertising. Through a shared language for in-store digital media, they aim to help capture ad budgets traditionally allocated to linear TV and out-of-home (OOH).
The standards are now open for public comment here until 1st November, with the final set of standards set to be released in November.
In the world of digital advertising, Made-for-Advertising (MFA) sites have become a significant concern. These websites exist primarily to serve ads, often relying on artificial traffic or clickbait rather than providing genuine content. While MFAs can temporarily boost metrics like impressions and clicks, they dilute the quality of supply, mislead advertisers, and ultimately harm both publishers and the integrity of the entire digital ecosystem. Addressing and eliminating MFA publishers is crucial to ensure that advertisers’ investments reach legitimate audiences and that real publishers are properly supported.
In a recent conversation between Andrew Casale, President and CEO of Index Exchange, and Helen Mussard, CMO of IAB Europe, Casale emphasised the company’s leading role in tackling MFAs. Index Exchange was one of the first to recognise and confront this issue, launching a bold investigation into MFA activity as early as 2022. At the time, they noticed a handful of small publishers experiencing unprecedented growth, raising red flags about artificial traffic practices. "We straight away put a team on it to investigate who these publishers were and what type of content was being produced. This is when we realised that whilst the domains were legitimate, the publishers themselves were fraudulent. They had produced a series of websites covering all types of content for the sole purpose of supporting ads. This sparked a bigger discussion into the speed of which MFAs were growing and the sophisticated techniques they had employed to secure legitimate domains. We quickly blocked those publishers and removed them from our exchange.
Despite the risks to revenue, Index’s dedicated exchange quality team, made the decision to proceed with an extensive investigation into MFA publishers, knowing the long-term importance of prioritising quality over short-term profits. "We knew this would impact our revenues in the short term, but quality always pays off in the long run," Casale said, underlying Index Exchange's commitment to maintaining a transparent, high-quality ecosystem for advertisers and publishers alike.
Over the following years, Index Exchange led the industry by conducting multiple waves of audits — eight in 2023 alone — to identify and remove traffic arbitrageurs. They implemented stringent guidelines, filtering 100% of supply to ensure it came from real human traffic. These efforts resulted in the termination of MFA domains, removing bad actors who were inflating their traffic through non-organic means.
However, Casale acknowledged that no exchange can claim to be completely MFA-free, noting that it’s about identifying new MFA activity as it appears and swiftly shutting it down. Casale recognises that new threats are always on the horizon. For that reason, he believes the responsibility for eliminating MFAs cannot rest on one company alone.
"We were the first to take this leap, but it’s a responsibility for all," Casale urged. He advised other exchanges and platforms to follow Index Exchange’s lead, acknowledging that while the path may temporarily impact revenue, it’s critical for the long-term health and integrity of the digital advertising industry. The entire ecosystem, he believes, must pivot from focusing on lists of domains to focusing on lists of legitimate publishers.
"Publishers are hurting," Casale stressed. "The last thing they need is for supply to be diluted any further." Index Exchange is dedicated to building a strong economic model that uplifts true publishers, not supporting traffic arbitrageurs who exploit artificial growth for short-term gains.
In short, while Index Exchange has led the charge against MFAs, Casale calls for industry-wide action. Andrew Casale is advocating for industry-wide adoption of sellers.json files, pushing for greater transparency and accountability in how traffic is generated and sold. Casale stressed the importance of collaborative efforts across the industry, both on the supply and demand sides, to protect the quality of advertising and ensure that advertisers’ money is going to publishers who deserve it — not traffic arbitrageurs. By taking a proactive, transparent approach — even at the cost of short-term revenue — the digital advertising industry can ensure that real publishers and advertisers thrive in a healthy, trustworthy ecosystem. "Quality always pays," Casale said, urging others to take responsibility and follow Index Exchange’s pioneering lead in tackling MFAs head-on.
During this year’s DMEXCO conference in Cologne, IAB Europe’s Chief Economist, Dr. Daniel Knapp revealed the latest stats and facts that demonstrate the powerful growth of Retail Media in Europe. Below you will find exclusive stats, along with additional insights on what is driving unprecedented pace in this exciting space.
The Retail Media landscape in Europe is growing at a fast pace - nearly four times faster than the total digital advertising market, in fact. With 50% of buyers already partnered with a retailer or Retail Media Network this nascent market is showing no signs of slowing.
Now projected to reach €31 billion by 2028 Retail Media really is playing a significant role in shaking up and shaping up the future of digital advertising. As brands shift budgets from traditional media, such as linear TV and print, towards data-driven Retail Media Networks (RMNs), it is clear that this space is becoming integral to advertiser’s strategies.
Download the infographic here.
According to IAB Europe’s Attitudes to Retail Media Report, released in July 2024, nearly 90% of buyers are motivated by the access to retailer first-party data, and three-quarters of buyers are drawn by the opportunity to reach consumers at the point of sale.
However, challenges exist in terms of fragmentation and the lack of standardisation making the scalability difficult for buyers. IAB Europe has been focused on the development of measurement standards over the past 12 months and, with the industry, has created standards for on-site, off-site and digital in-store Retail Media.
To get a little more insight into the numbers and what they mean for the development of Retail Media in Europe, we caught up with several industry leaders to get their thoughts on what is being seen.
“In our latest forecasts retail media in Europe continues its ascent despite macro economic headwinds in some European countries. The double-digit growth rates until the end of our forecasting period are similar to the rise of television advertising from the 1980s to 2000, indicating changed buying preferences from advertisers who focus on measurable outcomes. Early data on off-site retail media further shows that classifying it as a set of media channels is to too narrow, and that in times of signal loss retail media is emerging as an infrastructure on which wider advertising is transacted and measured.” Daniel Knapp, Chief Economist, IAB Europe
“Retail media and Connected TV (CTV) are the two fastest-growing channels, experiencing remarkable growth rates of 17% and 16.2%, respectively. A significant portion of CTV's success is driven by data from retail media. These two dynamic channels are deeply interconnected, and understanding one is essential to comprehending the other.” Yara Daher, Retail Media Consultant, IAB Europe
"The comparison between Retail Media's growth trajectory and the historical rise of TV is really compelling. By looking at how TV advertising scaled over time, it's reassuring to see that the forecasts for Retail Media's expansion aren't just optimistic—they're grounded in precedent. This comparison gives confidence that Retail Media has the potential to grow at a similar if not even faster, pace. It's exciting to think we may soon see Retail Media becoming as influential as TV once was in the advertising space. This kind of context is exactly what retailers and advertisers need to trust in the long-term viability of the channel." Katie Streeter Hurle, Chief Strategy Officer, SMG
"The most striking revelation from IAB Europe’s insights is retail media in Europe is expanding at nearly four times the rate of the overall advertising market. At GroupM we also see retail media outpacing the market this year, in key European markets like the UK and Germany where retail media growth is over 2x total advertising revenue growth, and in France where growth is over 3x. What truly excites me is the anticipated accelerated growth stemming from emerging sectors within retail media, including off-site advertising, data analytics, insights, programmatic buying, and innovative display formats. When combined, these areas are projected to outpace the growth of retail search over the next two years." Jason Wescott, Global Head of Commerce Solutions, GroupM Nexus & Chair of IAB Europe’s Retail Media Committee
“The growth forecasts for retail media are a strong signal for the future of the media genre. With growth almost four times faster than the market as a whole, retail media is expected to reach EUR 31 billion by 2028. This development makes it clear that retail media will be an integral part of a modern media mix, since it will permanently transform the way brands reach their customers. I am convinced of the potential that retail media offers. However, established standards are needed to meet the growth projections.” Patricia Grundmann, Vice President Media & Retail Media, MD OBI First Media Group and Vice-Chair of IAB Europe’s Retail Media Committee
“At Ahold Delhaize, we see our large local grocers and marketplaces lead in the Benelux as opposed to the typical dominant players in retail media. Moreover, we see diversification beyond sponsored product ads with investment driving into upper funnel ads, data and insights, audiences and in-store media.” Maurits Priem, VP Monetisation Europe and Indonesia, Ahold Delhaize
Notes on the Methodology of the IAB Europe Retail Media Forecasts
The Retail Media forecasts were developed using bottom-up modelling based on public company filings, retailer interviews and estimations of Retail Media as share of gross merchandise value. Data combined with benchmarking from third-parties and extrapolations based on total advertising growth. Data refers to online retail media only, covering on-site and off-site. In-store and digital out of home is excluded. Data includes online activities of brick and mortar and online pure-play retailers, quick commerce and ecommerce websites and apps
If you'd like to learn more about Retail Media and gain additional exclusive insights, join our free virtual Great Debate Event on 30th October, where Daniel Knapp and Andrew Lipsman, Independent Analyst & Consultant, Media, Ads + Commerce will open the event with the innovation drivers and data insights that are shaping Retail Media's transformation.
If you are a member of IAB Europe and would like more insights on Retail Media, please get in touch with our Industry development & Insights Director, Marie-Clare Puffett at puffett@iabeurope.eu.
IAB Europe has released a new document titled ‘Repository of European IAB’s Initiatives for Responsible Digital Advertising’, showcasing a range of initiatives related to digital advertising from IAB Europe and its National Federation members.
The repository includes contributions from IABs and Federations across various countries, including BVDW (Germany), Alliance Digitale (France), IAB Greece, IAB Italy, IAB Poland, IAB Portugal, IAB Romania, IAB Slovakia, IAB Slovenia, IAB Spain, and IAB Sweden.
This repository highlights the collective efforts of IAB Europe and these National IABs to promote a better and more sustainable digital advertising ecosystem. It outlines industry-led initiatives that align with and support key European Union digital policy priorities. These initiatives focus on:
As these initiatives continue to evolve alongside technological advancements, consumer behaviour, and regulatory changes, IAB Europe and its members remain open and committed to pursuing new initiatives for the industry. We also welcome ongoing dialogue with policymakers and regulators on any of the matters discussed.
View the Repository here.
Retail Media has become a powerful tool for brands looking for unique opportunities to reach and engage with consumers through every stage of the purchasing process. With the rise of Retail Media Networks (RMNs) and the availability of first-party data, marketers now have more resources than ever to implement full-funnel campaigns that drive awareness, consideration, and conversion.
In this Q&A blog, members of our Retail Media Committee discuss the intricacies of full-funnel strategies and how retail media can be leveraged to engage consumers at all levels of the funnel.
A big thank you to the following contributors for sharing their thoughts:
Amo Aujla-Tse, Retail Media Strategy Lead at Publicis Media
Kına Demirel, Managing Director at Mimedia
Q. What is a full-funnel campaign?
Amo Aujla-Tse: “A strategically crafted full-funnel campaign effectively delivers awareness, consideration, purchase, and loyalty through personalised content tailored to consumer preferences, the platform they engage with, and the stage of the purchase journey they’re at. By implementing a full-funnel approach, advertisers can enhance brand visibility, establish trust, boost brand sales and revenue, and grow a loyal consumer base.”
Kına Demirel: “A full-funnel campaign is a marketing strategy that targets consumers at every stage of the purchasing process, from initial awareness to final conversion and beyond. The goal of a full-funnel campaign is to guide potential consumers through the entire buyer’s journey by using different types of content and messaging tailored to each stage of the funnel. In general, there are 5 stages of a full-funnel campaign starting with creating awareness and engaging audiences, to consideration in a constant manner. After that, the campaign should encourage audiences to make a purchase, which is the conversion stage. Many full-funnel strategies stop at the conversion stage, however, in a full-funnel strategy, it's essential to retain audiences and ensure they have an enjoyable experience. In doing so, consumers will become advocates of brands and services which is the final stage of a full-funnel campaign.”
Q. How can Retail Media enable full-funnel campaigns?
Amo Aujla-Tse: “Retailers are transforming their advertising capabilities to facilitate seamless connections between advertisers and the right target audiences, supported by enhanced optimisations and measurement tools. The role of retail insights in informing full-funnel strategies is crucial for understanding consumer behaviour at different stages of the consumer journey. Retail insights empower marketers to gain valuable insights about consumer preferences, purchasing patterns, and trends which can shape full-funnel strategies.
Leveraging Retail first-party data, advertisers can access valuable insights for precise targeting, empowering them to drive conversions and cultivate brand loyalty effectively.”
Kina Demirel: “At the awareness stage, Retail Media Networks (RMNs) can provide brands with access to high-traffic retail websites, apps, and in-store digital displays. Entrance to stores, digital displays within stores, and banners on e-commerce sites can help build awareness.
In the consideration stage, retailers can offer content like buying guides, how-to videos, and reviews to educate consumers and differentiate brands. Personalised recommendations via carousel ads, SMS, or email can be used to further engage users. RMNs can also use past data to find interested consumers who haven't yet made a purchase.
Once in the conversion stage, RMNs can offer search ads and sponsored product listings to drive the final sale. Sponsored product listings are strategically placed within product listings and search results to capture high-intent shoppers.
In the retention stage, loyalty programmes and CRM tools like emails and subscriptions help brands identify loyal consumers. This data allows brands to re-engage them with new product launches, events, and offers.
In the advocacy stage, retailers encourage consumers to leave reviews, displaying positive feedback to influence future buyers. They also promote referral programmes, incentivising existing consumers to refer others through personalised ads or emails.”
Q. How do upper funnel activations differ from lower funnel?
Amo Aujla-Tse: “Upper funnel activations create brand awareness and generate interest among a broad audience whose intent hasn’t been qualified. Broader audiences consist of shoppers who may not be familiar with a brand or product within a given category. It is useful to leverage educational and lifestyle brand content, highlighting a brand's values here.
Channels that deliver awareness include TV (CTV), OOH, AVOD/BVOD, Programmatic, Radio/Audio & Social.
Lower funnel activations focus specifically on audiences who have qualified their intent through signals, such as audience inclusion, past purchase behaviour, or browsing. Lower funnel activations deliver immediate action from shoppers close to making a purchase. The target audience includes shoppers who are already familiar with a brand and are actively considering it. Content highlighting product benefits, promotions, and discounts should be leveraged here. Channels that deliver conversions include Retailer Search, Retailer Display, In-Store close to POS, and Social.”
Kına Demirel: “For the launch of a new product, where a TV ad can outline the main usage of the product for the lower funnel, another ad on TV can underline a specific promotion to encourage the purchase. The same applies to Retail Media. For the upper funnel, the main usage of the product can be put on a retailer’s brand, or sent as an email to specific audiences but for the lower funnel, search can be used to stimulate the buying. The main difference of a lower funnel campaign compared to an upper level one is a greater focus on targeted audiences rather than mass.”
Q. Are there any key considerations for the measurement of a full-funnel Retail Media campaign?
Amo Aujla-Tse: “Historically, advertisers have placed a strong emphasis on Return On Ad Spend (ROAS) as the primary KPI for Retail Media campaigns. However, shifting the focus from short-term metrics to encompass broader business objectives, such as enhancing brand awareness/recall and driving incremental sales growth, is crucial for evaluating the effectiveness of full-funnel media campaigns.
Furthermore, when assessing the impact of full-funnel campaigns, additional metrics come into play. These include offline sales impact and additional traffic to physical stores generated by online ads. By incorporating these alongside traditional online metrics, advertisers can gain a more holistic view of the effectiveness of their full-funnel Retail Media campaigns and make informed decisions to optimise their overall marketing strategies. “
Kına Demirel: “Full-funnel campaign measurement should encompass both brand-building (upper funnel) and performance-driven (lower funnel) metrics. This will ensure a comprehensive view of campaign performance across the entire funnel.
For the upper funnel, it is best to focus on metrics such as reach, impressions, engagement rates, and brand lift. The goal is to assess how effectively the campaign drives awareness and interest.
For the mid-level funnel, it is best to measure metrics like clicks, website visits, product views, and engagement with content to understand how well the campaign is moving potential consumers from awareness to consideration.
For the lower funnel, it is best to track direct conversion metrics, such as sales, conversion rate, ROAS, and CPA, to determine the effectiveness of driving final purchases or actions.
It is also important to continue measuring the effectiveness of the funnel after the campaign has finished for repurchase and loyalty effects.”
Q. Can you share two best practices for brands considering full-funnel activation within Retail Media?
Amo Aujla-Tse: “When considering full-funnel strategies within Retail Media, two essential best practices that can significantly enhance a brand’s approach include:
Kına Demirel has shared a case study to demonstrate the power of a full-funnel Retail Media strategy:
