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European retail media hits 10% of digital ad spend for first time
European digital ad spend rose 10.5% to €131.1B in 2025. Retail media hit €13.3B, crossing 10% of total for the first time. Video and social led growth.
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European digital advertising spending rose 10.5% in 2025 to €131.1 billion, with retail media growing faster at 16.7% to reach €13.3 billion, according to the latest IAB Europe report covering 30 markets.
For the first time, retail media – ads on online store websites, shopping apps, and platforms – crossed the 10% threshold of total European digital ad investment. Every one of the 30 markets covered grew last year.
The overall market's 10.5% expansion was slightly below the 16% growth recorded between 2023 and 2024, and well off the 30.5% pandemic-era peak in 2021. The report described the pace as "normalized" and just below the pre-pandemic long-run average.