Digital advertising spending in Europe exceeds €100,000 million

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Digital advertising in Europe has reached a historic milestone: more than 100,000 million euros in annual spending, according to data presented at the IAB Europe Interact conference. This figure reflects sustained growth in the sector and clearly illustrates the shift in the channels where advertisers are investing.

What is driving this growth?

Two channels stand out above the rest: connected TV (CTV) and retail media. Both are gaining ground on more traditional channels such as paid search, thanks to their ability to deliver performance, scalability, and, above all, transparency.

The current climate is clearly marked by economic uncertainty, and as a result, brands are prioritizing what is measurable and safe. As Alison Keith, Global Head of Media Excellence at Kraft Heinz, noted in her presentation at IAB Europe’s Interact :

“What I value most is when partners listen to the advertiser’s needs. In times of uncertainty, what people are looking for is transparency and collaboration.”

CTV: The Answer to the New Demand for Advertising

Investment in digital video grew by 24.5% in Europe over the past year, with broadcast video on demand (BVOD) taking center stage. Platforms such as ITVX and RTL+ saw double-digit growth in advertising revenue, demonstrating the growing interest in local streaming inventory.

Connected TV is, after all, increasingly being seen as the natural evolution of television, as it successfully combines scale, brand safety, and performance all within a single channel. In addition, interactive formats such as shoppable CTV (ads featuring products that can be purchased directly from the TV) are beginning to climb the priority list for industry professionals in Europe.

Retail media: from the shelf to the click

Retail media reached 10,000 million euros in Europe for the first time, with 22.2% growth. But its success isn’t just about having a presence on marketplaces:

“It’s not enough to just put your product on the shelves at Tesco and hope for the best,” Keith warned in the same presentation. The key is still to build brand awareness and desire before launching.

As a result, this channel is capturing budget that was previously allocated to paid search, but it still faces structural challenges. As Marie-Clare Puffett of IAB Europe pointed out, the true potential will be realized when commerce data can be fully integrated with other channels.

What are brands looking for?

Combining purchase data with scalable and measurable media. That’s the perfect formula in today’s landscape. That’s why CTV with “shoppable” features is emerging as one of the major areas of innovation for the coming months: it enables branding, performance, and attribution within a single, closed, and transparent environment.

What are the implications of this for advertisers?

At MIO One, we see this shift as a great opportunity for brands that are looking to:

• Strengthen its presence in high-performance, low-opacity channels.
• Harness the power of video and retail media without compromising brand-building.
• Prepare for an ecosystem where commerce data, measurement, and creativity work together.

Given the current economic situation, it is inevitable that the market will demand fewer “promises” and seek more results; that is why the future lies in platforms that combine visibility, data, and return on investment. And we are building that future right now.

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Communications Department