The digital advertising industry in Europe is witnessing a paradigm shift with the growing influence of Retail Media and IAB Europe’s new Attitudes to Retail Media Report offers unique insight into the current status and future trends driving Retail Media in Europe.
The survey, developed by IAB Europe’s Retail Media Committee, garnered insights from over 160 respondents across 31 markets, comprising advertisers, agencies, and Retail Media Networks (RMN). Notably, the majority of respondents manage significant annual advertising budgets and hold influential positions within their organisations, such as Heads of Retail Media and Media Directors. The report underscores the pivotal role that Retail Media is slated to play in the future of digital advertising.
The Report reveals that Retail Media is enhancing media planning by leveraging data insights and reaching consumers at their point of purchase. It also highlights the importance of addressing barriers, such as the need for industry collaboration to establish standards. These insights underscore the transformative potential of Retail Media and the need for concerted efforts to foster its growth and professionalisation.
The survey indicates that while Retail Media is frequently discussed in industry circles and at events, its adoption is still in the nascent stage, with only half of the buyers having established partnerships with retailers or RMNs for more than one year. Notably, a significant trend is the reallocation of funds from other marketing channels to retail media, particularly from linear TV and performance marketing budgets.
Another interesting insight revealed the dominance of on-site opportunities in retail media investment. Furthermore, the report indicates that data access and the ability to reach consumers at the point of sale are significant drivers of investment, aligning with the broader industry trend of leveraging data and personalisation to enhance advertising efficacy.
However, the report also identifies some notable challenges. Approximately 60% of buyers cite the fragmentation of Retail Media Networks and the lack of standardisation as significant barriers. In addition, retailers face operational and technological challenges that hinder the growth of Retail Media insights that are crucial for understanding the current hurdles that need to be addressed to further unlock the potential of Retail Media.
IAB Europe’s Retail Media Committee has been driving significant initiatives to develop standards for Retail Media Advertising. The multi-stakeholder group, comprising of retailers and leading Retail Media businesses, has already produced valuable resources, including pan-European definitions, the first-ever industry association-led Retailer Digital Advertising Capability Map, and a Retail Media Glossary, which can be viewed on IAB Europe’s Retail Media Hub here. These initiatives underscore the collaborative efforts to shape the future of Retail Media and uphold industry standards.
The first Pan-European Attitudes to Retail Media Report for 2024 serves as a milestone in providing a comprehensive overview of Retail Media in Europe. The insights gleaned from this report not only offer valuable strategic insights but also pave the way for collaborative efforts to address challenges and propel the industry towards a new era of digital advertising.
Undoubtedly, Retail Media is set to play a defining role in shaping the advertising landscape in Europe in the coming years, and the report marks a significant step in understanding and embracing this transformative trend.
For more information on IAB Europe’s Retail Media work and how you can get involved in the Committee, please contact IAB Europe’s Industry Development & Insights Director, Marie-Clare at puffett@iabeurope.eu.
