The number of retail media partnerships in place is growing rapidly, as brands, agencies, retailers, and tech vendors increasingly make the channel an integral part of their strategies, according to the second edition of IAB Europe’s Attitudes to Retail Media Report.
Developed by IAB Europe’s Retail & Commerce Media Committee, the survey of more than 180 respondents from advertisers, agencies, and retail media networks in 31 markets found the percentage of buy-side stakeholders in retailer partnerships lasting more than a year has increased from 50% to 63% in 12 months. Meanwhile, the number of brands working with between four to six networks has more than doubled from 10% to 24%.
“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,” said Marie-Clare Puffett, Industry Development & Insights Director at IAB Europe. “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.”
When it comes to where the money is being spent in retail media, onsite retail media continues to be dominant. More than 90% of buyers allocate at least 41% of their digital retail media spend to onsite. Nonetheless, offsite investment is on the rise with 46% (up from 30%) of buyers allocating similar budgets. In-store digital screens, while gaining interest, are still seeing limited investment.
The growth on the buy-side, according to the report, is being driven by first-party data activation, point-of-sale reach, and the rise of channels such as connected TV, audio, and out-of-home within the retail media arena. On the other hand, motivations on the sell-side include additional revenue, strategic alignment, and competitive advantage.
While investment and attention given to the space are both growing rapidly, and concerns around data access and technology have eased, network fragmentation (51%) and lack of standardisation (53%) continue to the be the most significant barriers to further growth. Buyers are prioritising transparency (82%), performance (76%), and measurement options (75%) when evaluating retail media partners, with return on ad spend the most in-demand metric (88%).
“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,” said Jason Wescott, Global Head of Commerce Solutions, WPP Media & Chair of IAB Europe’s Retail & Commerce Media Committee.
“This 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.”
Jill Orr, Managing Director, EMEA at Criteo and report contributor, added: “Retail media has already reshaped how brands engage with consumers across the purchase journey. According to these recent findings from IAB Europe, nearly 80% of advertisers are prioritising visibility at the point of sale – and rightly so. Driving conversions and demonstrating clear ROI remain essential. However, a singular focus on bottom-of-funnel tactics captures only part of the opportunity.
“Leading advertisers are embracing full-funnel strategies, recognising the value of influencing shoppers not just at the moment of purchase, but throughout the entire decision-making process. From initial product discovery to consideration and, ultimately, conversion, there are multiple high-impact touch points that can be leveraged to guide and shape consumer behaviour.
“By harnessing the power of first-party data, retailers and brands can deliver more timely, relevant, and personalised messaging – tailored to where the shopper is in their journey and informed by purchases made in the past. Whether a consumer is exploring categories, comparing options, or ready to check out, the activation of commerce data enables brands to engage with precision.
“Ultimately, this approach goes beyond driving transactions. When implemented effectively, full-funnel retail media strategies deliver stronger brand engagement, improve media efficiency, and lay the groundwork for long-term customer loyalty and lifetime value.”
