IAB Europe, the leading European-level industry association for the digital advertising industry, has today (July 23rd, 2024) released the first Pan-European Attitudes to Retail Media Report for 2024, offering a fully comprehensive overview of the current status and future trends driving Retail Media in Europe as determined by the buyers and sellers in Retail Media advertising.

Key findings reveal that half of buyers are already partnering with Retail Media Networks and are shifting budgets from other marketing channels to fuel Retail Media investment.

The survey developed by IAB Europe’s Retail Media Committee received over 160 respondents from advertisers, agencies, and Retail Media networks in 31 markets. The majority of respondents (80%+) manage annual advertising budgets of €1m (£842k) or above and are investing more than 41% in digital advertising. Many of the respondents were either heads of Retail Media or media directors.

Commenting on the findings from the report, Marie-Clare Puffett, IAB Europe’s industry development & insights director said, “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. This collaboration is crucial for fostering the growth and professionalisation of Retail Media and IAB Europe plays a vital role in uniting the industry and setting standards for the European market.”

Key Findings from the Report:

Retail Media adoption is still nascent: The report highlights that while Retail Media is a widely discussed topic, its adoption is still in the early stages. Only 50% of buyers have partnered with a retailer or Retail Media Network for more than one year. 

Spend diverted from other marketing budgets: Half of buyers are reallocating funds from other marketing channels to Retail Media, particularly from linear TV and performance marketing budgets. 

On-site opportunities dominate investment: Currently, most Retail Media investments focus on on-site opportunities, indicating potential growth in off-site and in-store advertising in the coming year.

Data access and point of sale reach drive investment: Nearly 90% of buyers are motivated by the access to retailer first-party data, and three-quarters of buyers are drawn by the opportunity to reach consumers at the point of sale.

Fragmentation and lack of standards hinder investment: Approximately 60% of buyers cite the fragmentation of Retail Media Networks and the lack of standardisation as significant barriers. Retailers also face challenges with operational elements and technological requirements.

Measurement options and audience reach are key Retail Media Network evaluation criteria: Around 75% of buyers consider measurement options and audience reach crucial when evaluating Retail Media Networks (RMNs) within the same category.

Jason Wescott, chair of IAB Europe’s Retail Media Committee and global head of commerce solutions at GroupM said: “Market Intelligence is one of the foundational pillars of our Retail Media Committee work plan. Amidst the burgeoning interest in Retail Media, it is imperative we deliver a consistent and authoritative source of truth regarding the European market landscape. Our previous surveys have yielded invaluable insights, guiding critical committee decisions on project prioritisation, exemplified by the publication of our Retail Media Measurement Standards in April. I am delighted to support the release of our inaugural 'Attitudes to Retail Media' report, which will unveil pivotal trends and growth opportunities across Europe. I am confident these findings will furnish our committee and members with indispensable strategic insights.”

Developing standards for Retail Media Advertising in Europe is a key focus for IAB Europe’s Retail Media Committee. This multi-stakeholder group brings together retailers alongside leading Retail Media Businesses in Europe to advance and shape the future of this exciting digital advertising space. It 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. You can find these resources and more on IAB Europe’s Retail Media Hub here. 

The full report can be downloaded from IAB Europe’s website here