European digital ad market grows to €131 billion

The study draws together data from 30 national markets and appears this year for the twentieth time

Europe's digital advertising market grew by 10.5 percent in 2025 to reach €131.1 billion. That is the headline finding of the AdEx Benchmark 2025 Report from IAB Europe, the European industry association for the digital advertising sector, presented in London on 7 July. The study draws together data from 30 national markets and appears this year for the twentieth time.

The market added €12.5 billion in a single year. Growth is slower than the 16 percent recorded in 2024, but all 30 measured markets post an increase. IAB Europe sets the figures against a backdrop of sluggish economic growth and continued geopolitical pressure.

Daniel Knapp, chief economist, IAB Europe: "Against a backdrop of sluggish economic growth, trade policy uncertainty and cautious consumers, this points to a structural shift. Digital advertising is moving beyond a communications expense to become sales infrastructure, shelf space and shopfront at once."

Video takes more than half of display

Growth concentrates in two formats. Video advertising rose by 19.6 percent to €34 billion and for the first time makes up more than half of all display investment in Europe. Social advertising came in 19.2 percent higher at €35.5 billion, with social video the fastest riser at 25.7 percent.

Retail media past ten percent

Retail media grew by 16.7 percent to €13.3 billion, passing ten percent of total digital spend for the first time. The established categories lag behind: paid search rose 8.8 percent and classifieds 6.5 percent. Classic display without video shrank slightly, by 0.8 percent.

The two milestones map the market's direction: "Commerce and content are converging, and measurability decides where the next euro goes."

Real growth below nominal

For the first time, IAB Europe adds an inflation-adjusted view. In real terms, European growth stands at 9.4 percent, against 10.5 percent nominal. In high-inflation countries the gap is wide: Turkey's nominal gain of 37 percent translates into roughly 2 percent real growth. Digital now accounts for around 70 percent of all advertising spend in Europe.

The full report can be accessed here

www.iabeurope.eu

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