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.