European Retail Media Market: Growth and Strategic Evolution
Significant Growth and Key Market Trends
The European retail media market has witnessed remarkable growth, with advertiser spending doubling in recent years. According to findings from WARC Media, the global retail media market expanded by 13.7% in 2023, reaching an estimated value of 152 billion euros. Europe stands as a robust contributor to this trend, illustrated by examples such as Amazon Germany, which reported a 20% increase in net sales for its retail media segment.
Despite this strong expansion, projections suggest a gradual slowing in growth rates over the coming years. Market forecasts anticipate a 12.4% growth rate in 2025, decreasing slightly to 11.6% by 2027. These figures remain competitive when contrasted with mature markets like the United States and China but indicate a transition towards market stabilization.
Beyond Performance: The Full-Funnel Opportunity
Retail media primarily encompasses on-site advertising placements, including search results, product pages, and homepage displays within retailer platforms. Historically seen as predominantly a lower-funnel performance channel focused on direct conversions, retail media is evolving into a comprehensive full-funnel solution.
Recent data shows that approximately 40% of marketing managers now view retail media as capable of supporting the full marketing funnel, from awareness to conversion. This shift is driven by the strategic use of first-party data and diversified advertising formats that enable holistic consumer engagement and more effective measurement of campaign impact across all stages.
Strategic Implications for Retail Media Insiders
For retailers, embracing retail media’s evolution means investing in robust advertising platforms that extend beyond on-site placements, incorporating off-site and programmatic strategies to capture audience attention across channels. Brands should reconsider budget allocations to leverage retail media’s expanded scope, aligning campaign objectives with full-funnel outcomes rather than focusing solely on immediate sales.
The maturing landscape calls for refined strategic planning to maximize the value derived from retail media investments. Stakeholders who integrate these insights can expect to maintain competitive advantages in audience targeting, data utilization, and multi-channel retail engagement.
As the European retail media market continues to develop, remaining attuned to these trends will be vital for retailers and brands committed to sustained growth and innovation.
