European digital advertising growing 10.5%
European digital advertising spend grew by 10.5% in 2025, reaching €131 billion. For the first time, video now accounts for more than half of all display investment in Europe, advertising organisation IAB Europe’s AdEx Benchmark study shows. The report comprises 30 markets. “Building on the strong growth recorded in 2024, the latest data shows that Europe’s digital advertising market continued to expand in 2025, despite ongoing macroeconomic and geopolitical pressure and differing levels of market maturity across the region”, IAB says.
“The findings reinforce advertisers’ continued commitment to the channels and formats shaping Europe’s digital advertising ecosystem.”
“Growth was concentrated in video-led formats, Connected TV (CTV), social video and Retail Media, reflecting changing patterns of media consumption, the increasing importance of commerce-led advertising, and continued demand for measurable, high-impact digital environments.”
“While established categories such as paid search and classifieds remained in growth, they lagged the wider market, highlighting a shift in where momentum is building across the ecosystem.”
Key findings:
- Social video was the fastest-growing format in this year’s report, increasing by 25.7%.
- Social advertising continued to grow strongly in 2025, increasing by 19.2% to reach €35.5 billion.
- Within this, social video was a key driver, highlighting the ongoing shift towards short-form, video-led and platform-based advertising formats.
- Retail Media grew by 16.7% to €13.3 billion. “Its continued momentum reflects advertiser demand for first-party data, commerce-led environments and stronger links between media investment and measurable business outcomes.”
- Display advertising grew by 12.5% while paid search and classifieds grew by 8.8% and 6.5%, respectively.
- Western Europe remains steady. More mature Western European markets, including Spain, France, Italy and the Netherlands saw growth of around 10%.
- Nordic and Baltic markets were closer to flat growth in 2025, reflecting more varied market conditions and a mixed regional picture across Europe.
“Two milestones in this year’s data show where the market is heading: video now accounts for more than half of all display investment in Europe for the first time, while Retail Media has passed 10% of total digital ad spend. Commerce and content are converging, measurability is deciding where the next euro goes”, says IAB Europe’s Chief Economist, Daniel Knapp.
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