Ellie Edwards-Scott, RMA’s Associate Publisher, explores every facet of the world of retail media and why it’s so exciting as part of a 10-part weekly report series.
Retail media is no longer the new kid on the block. In terms of growth, maturity, and influence on marketing budgets, it has emerged as one of the most dynamic advertising channels in the world. But how big is retail media today? How fast is it growing, and where is that growth coming from? The second part of our editorial series explores the latest figures from the UK, Europe, and beyond to provide a clear picture of the market’s scale and direction.
Explosive growth, with no sign of slowing
Retail media is experiencing rapid and sustained growth across all major regions. According to the IAB UK’s Futurescape Barometer, digital retail media in the UK is expected to reach £8.6 billion by 2030. That growth comes at a compound annual growth rate (CAGR) of 17% between 2024 and 2030.
The channel’s growth is already outpacing traditional digital advertising. While the total UK ad market is forecast to grow modestly in coming years, retail media’s momentum puts it nearly four times ahead in terms of annual growth.
Retailers are now prioritising high-return formats like sponsored products, while expanding their offerings to include video, social, and even connected TV (CTV). This diversification is helping to drive further investment from media budgets, not just trade or shopper marketing budgets.
The European perspective
Zooming out to the continent, retail media spend in Europe is projected to reach €31 billion by 2028. That figure reflects a notable upward trend, with European retail media advertising growing by 22% in 2023 alone. In comparison, the total ad market in Europe grew by only 6% during the same period.
There are now 113 retail media networks (RMNs) active across the EMEA region. This growth in infrastructure, technology, and retailer participation signals strong maturity and broad adoption. Importantly, 53% of European retailers now say they’ve had a retail media offering in place for more than a year, with another 31% having launched within the past 12 months.
This suggests that retail media has moved well beyond pilot phase and is firmly embedded in retail and brand strategies across the continent.
Global context and comparisons
The global numbers are even more striking. According to WARC, worldwide digital retail media ad spend is expected to hit $169.5 billion by 2025, up from $103.3 billion in 2021. That trajectory puts it on par with — and in some markets surpassing — total social media advertising spend.
Retail media’s rise is particularly visible in the US, where giants like Amazon, Walmart, Target, and Kroger have built vast RMNs. But the trend is global. Brands and retailers in Latin America, Asia, and Australia are increasingly embracing retail media as part of their omnichannel marketing efforts.
Retail media in the UK: a closer look
UK-specific data shows that retail media is not just a future growth story, but already a major force. From a spend of just £1.32 billion in 2019, UK digital retail media is projected to reach £7.88 billion by 2026. That’s nearly a sixfold increase in just seven years.
Key milestones in the UK growth curve:
- 2020: £1.78 billion
- 2021: £2.7 billion
- 2022: £3.4 billion
- 2023: £3.98 billion (estimated)
- 2024: £5.3 billion (forecast)
- 2025: £6.62 billion (forecast)
- 2026: £7.88 billion (forecast)
These numbers highlight not only growing investment from brands, but also the commercial importance of RMNs to retailers themselves. In many cases, retail media has become a key driver of profitability and digital transformation.
Adoption by agencies and advertisers
Retail media is not just being embraced by retailers. Agencies and advertisers across Western Europe have also shifted their strategies to include RMNs as a central channel. According to research from Criteo, 50% of agency respondents in the UK, France, and Germany reported active investment in both onsite and offsite retail media.
Another 21% were investing onsite, with plans to expand into offsite in the near future. Only 18% reported no current investment, suggesting that retail media is now table stakes for most media buyers and planners.
This trend reflects both growing maturity and recognition of retail media as a key pillar of the media mix. For agencies, the opportunity is clear: retail media offers addressability, data richness, and closed-loop attribution that few other channels can match.
What’s driving the spend?
Several macro and micro factors are fuelling retail media’s rapid rise:
- Retailer transformation: As margins shrink, retailers are investing in media as a profit centre.
- The death of cookies: First-party data from retailers is increasingly valuable in a privacy-first world.
- Omnichannel commerce: The need to connect online and in-store customer journeys is creating demand for new ad solutions.
- Closed-loop measurement: Retail media’s ability to attribute spend directly to sales is driving performance investment.
As a result, brands are shifting budget away from traditional channels and toward retail media, especially for product launches, promotional campaigns, and bottom-funnel activity.
The takeaway
Retail media is now one of the fastest-growing sectors in advertising. With huge increases in spend, participation, and capabilities, it is set to become a mainstay of the marketing ecosystem — not just in the UK but around the world.
As advertisers seek data-rich, accountable channels in an increasingly fragmented media environment, retail media offers a compelling proposition. For retailers, it is not just a side business, but a strategic imperative.
In the next article, we will explore the state of retail media in the UK in more depth, including key players, capabilities, and strategic priorities.
