Retail media is rapidly evolving from a niche performance channel into one of the most strategic areas of digital advertising in Europe. As ecommerce continues to influence consumer behavior and brands look for more measurable media investments, retailers and marketplaces are becoming increasingly important advertising ecosystems.
The combination of first-party data, closed-loop measurement, and high-intent audiences is accelerating the growth of retail media across Europe. What was once mainly associated with sponsored ads on marketplaces is now expanding into a broader media environment that includes on-site advertising, off-site activation, audience targeting, and full-funnel strategies.
The European Retail Media Market Is Growing Fast
According to recent data from Statista and IAB Europe, digital retail media advertising spending in Europe reached approximately €13.8 billion in 2024 and is projected to exceed €31 billion by 2028.
This trajectory highlights how retail media is becoming one of the fastest-growing segments within digital advertising. Even though annual growth rates are expected to gradually normalize over time, the market is still forecast to maintain double-digit growth in the coming years.
The expansion of ecommerce platforms, changing consumer purchasing habits, and the increasing importance of measurable advertising environments are all contributing to this acceleration.
Retail Media Is Becoming Mainstream
One of the most interesting signals emerging from the European market is the growing share of retail media within total digital advertising investments.
Retail media accounted for 8.8 percent of digital ad spend in Europe in 2023. According to forecasts included in the report, that share could rise to 21.5 percent by 2027.
This is a major shift.
Retail media is no longer limited to lower-funnel sponsored product campaigns. It is increasingly becoming part of broader media planning strategies that include audience targeting, upper-funnel activation, brand awareness, and omnichannel measurement.
As third-party cookies continue to lose relevance, advertisers are placing greater value on environments where deterministic shopper data and purchase signals are available.
Amazon Still Dominates the Ecosystem
Despite the expansion of retail media networks across Europe, Amazon remains the dominant player in the ecosystem.
According to the report, Amazon accounted for 54 percent of the European retail media market in 2024 based on advertising revenue.
Its scale, ecommerce infrastructure, and access to high-intent consumer behavior continue to position Amazon as the benchmark for retail media advertising in Europe.
At the same time, several regional and local players are strengthening their own retail media propositions. Companies such as Zalando, Bol.com, MediaMarkt, and Allegro are investing more heavily in advertising ecosystems and first-party data capabilities.
This suggests that the European retail media landscape may become increasingly fragmented but also more competitive in the coming years.
Why Brands Are Increasing Their Retail Media Investments
One of the key drivers behind retail media growth is access to retailer first-party data.
According to the report, 85 percent of advertisers in Europe identified access to retailer first-party data as one of the main advantages of retail media advertising.
Other major benefits highlighted by advertisers include:
- reaching consumers close to the point of purchase,
- improved targeting efficiency,
- closed-loop attribution,
- and more measurable media investments.
As a result, retail media is increasingly being integrated into broader commerce and media strategies rather than being managed as a standalone performance channel.
The Next Phase of Retail Media in Europe
Although the market is growing quickly, retail media in Europe is still facing several challenges.
Advertisers continue to highlight issues related to:
- lack of standardization,
- fragmented ecosystems,
- limited interoperability,
- and measurement complexity.
At the same time, the ecosystem is evolving beyond traditional sponsored ads.
New areas such as:
- off-site retail media,
- connected TV integrations,
- audience extension,
- and unified online/offline measurement
are becoming increasingly important across the European market.
This evolution suggests that retail media is moving toward a more mature and full-funnel advertising model.
FAQ
Retail media advertising refers to advertising solutions offered by retailers and marketplaces using their own first-party shopper data and digital ecosystems.
Retail media is growing due to ecommerce expansion, increased demand for measurable advertising, and the growing importance of first-party data in a cookieless environment.
Amazon benefits from massive shopper traffic, strong purchase intent signals, advanced advertising solutions, and a highly developed ecommerce ecosystem.
No. Small and medium-sized brands can also leverage retail media through sponsored advertising solutions available on marketplaces and retailer platforms.
Some of the main challenges include measurement standardization, fragmented retail media networks, interoperability issues, and increasing operational complexity.
Final Thoughts
Retail media in Europe is no longer an emerging trend. It is becoming a central component of the digital advertising ecosystem.
As retailers continue to expand their media capabilities and advertisers prioritize measurable commerce-driven environments, retail media is likely to play an even more strategic role in the future of digital advertising across Europe.
Retail Media & Commerce Growth Leader with 8+ years across Amazon and leading marketplaces. I design full-funnel strategy, governance, and measurement—building operating models and developing teams to scale performance across markets. I share practical frameworks and tools for sustainable growth.