European digital ad spend rose 10.5% to €131bn in 2025, IAB Europe reports
Brussels-based IAB Europe presented the twentieth edition of its AdEx Benchmark Report at an event in London on 7 July, showing European digital advertising investment reached €131.1 billion in 2025, up €12.5 billion on the prior year. The 10.5% nominal growth rate falls to 9.4% once measured in real terms, using an inflation-adjustment methodology built with World Bank and IMF price data introduced in this edition. The data covers 30 national markets. Chief Economist Daniel Knapp pointed to two milestones: video now makes up more than half of European display investment for the first time, and Retail Media, which includes retailer-owned search and display formats, has moved past 10% of total digital ad spend. Paid search and classifieds continued to grow but at a pace behind the overall market, while Connected TV and social video pushed the video category's expansion.
Budget allocation decisions increasingly follow measurability. Video and Retail Media are pulling euros away from formats that once dominated by default, and campaigns planned without a Connected TV line risk missing where cross-channel video spend is now concentrated. Retail media's climb past 10% of total spend means on-site retailer inventory has become a budget line to track alongside search and social. Turkey's case is a reminder to check inflation-adjusted figures before comparing market growth rates across the region, since a 37% headline gain there amounts to roughly 2% in real terms.