Europe's Retail Media Market Booms to €28.8 Billion by 2028
The retail media landscape in Europe is booming, with a projected €28.8 billion in spending by 2028. This rapid growth, driven by access to first-party data and a shift in advertising budgets, is transforming the digital advertising sector.
IAB Europe's forecast paints a clear picture of retail media's ascent. In just seven years, the sector has surged from €7.4 billion in 2021 to €13.7 billion in 2024, growing at a staggering 21.1% year-on-year. This growth is set to continue, with expected spending of €16.9 billion in 2025, €20.8 billion in 2026, and €24.9 billion in 2027, before reaching €28.8 billion in 2028.
The key drivers behind this growth are access to first-party data and a shift in advertising budgets. Eighty-five percent of buyers cite access to retailer first-party data as the key opportunity, while 55% of advertisers are redirecting spending from traditional display formats towards retail media platforms. This reallocation has led retail media to capture 20% of total digital advertising expenditure in Europe.
Despite challenges such as lack of standardization, which 53% of buyers cite as a barrier, retail media continues to grow at a remarkable pace. Its growth trajectory contrasts sharply with broader market performance, solidifying its position as one of the fastest-growing segments within digital advertising. By 2028, retail media is expected to reach €28.8 billion, reflecting its significant impact on the European advertising landscape.
