IAB Europe’s 2025 Attitudes to Retail Media Report highlights the rise of digital screens in-store, growing investment in first-party data and omnichannel integration, and the urgent need for industry-wide standards.
Retail media continues to gain momentum across Europe, with new findings from IAB Europe’s 2025 Attitudes to Retail Media Report confirming that the channel is now a central part of the advertising mix.
The report finds digital screens are leading in-store adoption, first-party data is driving investment decisions and omnichannel integration is reshaping strategies across buyers and sellers.
Digital screens lead in-store investment
In-store retail media is shown as being driven primarily by digital screens, with 70% of retailers offering this format and 54% of buyers investing. Compared to traditional methods, such as posters or sampling, digital screens offer measurable impact, creative flexibility and the ability to adapt campaigns in real time.
By contrast, investment in in-store audio (13%) and connected shopping opportunities (11%) remains modest. While these channels have potential, buyers are prioritising formats that can demonstrate immediate return on spend and stronger shopper engagement.
Encouragingly, the report finds the proportion of retailers not offering any in-store media has dropped sharply, from 28% in 2024 to 15% in 2025. This shows how in-store activations are increasingly recognised as valuable, both for driving sales and for creating connected brand experiences. Yet despite this progress, nearly a third of buyers (29%) still allocate no investment to in-store activations, suggesting a gap between retail media’s promise and actual budget deployment.
“In-store digital is so much more than cardboard, stickers and sampling. The onus is on retailers and their agency partners to show the full scope of what is achievable to advertisers by way of shopper insight data in addition to attributable behavioural change and increased sales,” said Alison Dunham, Sales Director, In-Store Retail Media, UK, PRN, a STRATACACHE company.
Her comments reflect the evolution of retail media from a tactical, point-of-sale add-on into a strategic investment channel where digital formats can drive results across the full funnel.
On-site spend dominates, off-site gains traction
Over 90% of buyers are shown as allocating at least 41% of their digital retail media spend to on-site formats, underlining the dominance of retailer-owned platforms such as e-commerce sites and apps. These environments are prized for their proximity to the point of purchase and their ability to leverage first-party data for precise targeting.
Off-site investment, however, is also on the rise. The report shows budgets have jumped from 30% to 46% of buyers allocating significant spend to external channels such as display and social media. This reflects a shift towards more holistic strategies that connect the entire shopper journey – from awareness to conversion.
In-store digital screens, while gaining interest, still see comparatively limited spend. According to the report, this suggests untapped potential for retailers to develop more compelling propositions that combine data, measurement and creative innovation.
Growth drivers: first-party data and omnichannel integration
Looking forward, buyers have identified first-party data activation and omnichannel integration as the most important growth drivers for retail media in 2025, each cited by 39%. Close behind, incrementality sales measurement is prioritised by 37%, reflecting the industry’s ongoing demand for performance accountability.
The prominence of these growth drivers marks a shift from 2024, when standardisation was the leading priority. While industry-wide standards remain critical, stakeholders are increasingly focused on outcome-based levers that can deliver value at scale.
For retailers, the report says the message is clear: future growth will depend on their ability to combine robust data assets with seamless cross-channel activation. Loyalty programmes, closed-loop measurement and the ability to connect on-site, off-site and in-store campaigns will be key in unlocking performance.
IAB Europe’s role in professionalising the channel
As the leading European-level industry association for digital advertising, IAB Europe plays a vital role in uniting stakeholders, addressing challenges and setting standards.
The report, developed by IAB Europe’s Retail & Commerce Media Committee, received more than 180 responses from advertisers, agencies and retail media networks across 31 markets. Most respondents (75%+) manage annual advertising budgets of €1m or more and nearly half (48%) invest more than 41% in digital advertising.
“This year’s report confirms that retail media is no longer an emerging trend, but a strategic priority. As the ecosystem matures, we’re seeing a real need for shared standards, consistent measurement and greater collaboration across stakeholders. Through our Retail Media Certification Programme and the work of our committee, we’re committed to providing the guidance and tools the industry needs to grow effectively,” said Marie-Clare Puffett, Industry Development & Insights Director, IAB Europe.
Key findings from the 2025 report
The report reveals an advancing ecosystem with shifting budget allocations and more strategic approaches to activation. Some of the most notable findings include:
- Retail media partnerships are deepening and diversifying – Buy-side stakeholders in retailer partnerships lasting more than a year rose from 50% to 63%, while the number of brands working with four to six networks more than doubled from 10% to 24%.
- On-site retail media remains dominant – Over 90% of buyers allocate at least 41% of their digital retail media spend to on-site. Off-site channels are expanding rapidly, particularly in display and social.
- Growth is driven by data and emerging channels – First-party data activation, point-of-sale reach, and emerging channels like CTV, audio and out-of-home are driving buy-side growth. Sell-side stakeholders cite additional revenue, strategic alignment and competitive advantage as top motivators.
- Fragmentation and lack of standards hinder growth – Although concerns around data access and technology have eased, network fragmentation (51%) and lack of standardisation (53%) remain the most significant barriers.
- Measurement and transparency take centre stage – Buyers prioritise transparency (82%), performance (76%) and measurement options (75%) when evaluating retail media partners, with ROAS the most in-demand metric (88%).
Jason Wescott, Global Head of Commerce Solutions, WPP Media and Chair of IAB Europe’s Retail & Commerce Media Committee, said: “This report highlights the key drivers powering retail media’s momentum, particularly the activation of first-party data and the growing influence of point-of-sale. While challenges like network fragmentation and lack of standardisation remain, it’s promising to see concerns around data access and technology starting to ease.
“The report is more than a snapshot of market sentiment—it serves as a strategic roadmap. It reinforces the urgent need for industry-wide standards, advanced measurement capabilities and ongoing upskilling to help realise retail media’s full potential across Europe.”
The road ahead
As retail media continues to expand, the report identifies one of the biggest challenges for the industry will be balancing growth with consistency. Fragmentation across networks makes it difficult for brands to scale campaigns effectively, while a lack of common standards creates inefficiencies in measurement and reporting.
However, the momentum behind first-party data and omnichannel integration points to a clear direction of travel, the report says. As buyers demand greater accountability and sellers push for competitive differentiation, the industry is moving toward a model where scale, transparency and advanced measurement underpin sustainable growth.
Overall, the report’s findings report show that retail media is no longer confined to on-site activations but is evolving into a multi-channel discipline capable of influencing consumers across the full purchase journey. With collaboration, innovation and a commitment to professionalisation, retail media is set to become one of the most important pillars of the digital advertising ecosystem in Europe, the report says.
