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European Digital Ad Market Hits €131.1 Billion

European digital advertising spending rose by 10.5% in 2025 to reach €131.1 billion, according to the latest AdEx Benchmark Report from IAB Europe. Despite macroeconomic and geopolitical pressures, advertisers continued to increase digital investment, with video and retail media accounting for much of the market's growth.

Katarína Šimčíková Katarína Šimčíková
E-commerce Content Writer & EU Market Partnerships, Ecommerce Bridge EU
European Digital Ad Market Hits €131.1 Billion
Source: ChatGPT

Video Takes a Larger Share of Digital Budgets

Video advertising remained one of the fastest-growing parts of the market last year. Spending climbed 19.6% to €34.0 billion, marking the first time video accounted for more than half of all display advertising investment across Europe.

Social video led the market, expanding by 25.7%. The figures point to continued demand for short-form video across social platforms, making it the fastest-growing format covered in this year’s report.

Retail Media also maintained strong momentum. Investment increased by 16.7% to €13.3 billion, reflecting advertisers’ growing use of first-party data, commerce-led environments and measurable business outcomes.

Social advertising as a whole grew by 19.2%, reaching €35.5 billion, with video contributing much of that increase.

Bar chart comparing European digital ad spend by format in 2024 and 2025, showing strongest growth in social advertising (+19.2%).

Source: iabeurope.eu

Traditional Channels Still Expanded

The strongest growth came from newer advertising formats, but established channels also moved higher.

Display advertising increased by 12.5% during 2025. Paid search recorded growth of 8.8%, while classifieds rose by 6.5%. All three remained in positive territory, although they expanded more slowly than the overall digital advertising market.

Western Europe Keeps Its Momentum

Growth remained steady across Europe’s more mature advertising markets. Spain, France, Italy and the Netherlands each recorded growth of around 10%, showing that advertisers continued to invest in established digital ecosystems.

The picture was more mixed elsewhere. Nordic and Baltic markets experienced much flatter growth during 2025, reflecting different market conditions across the region.

Bar chart of Europe's digital ad market by country in 2025, showing the UK, Germany and France account for 62% of total spend.

Source: iabeurope.eu

Commerce and Content Continue to Converge

Presenting the findings, Daniel Knapp said Europe’s digital advertising market added €12.5 billion during 2025 despite sluggish GDP growth, trade policy uncertainty and cautious consumer spending.

He highlighted two developments that stand out in this year’s data. Video accounted for more than half of Europe’s display advertising investment for the first time, while retail media grew to represent more than 10% of total digital advertising spend.

According to Knapp, the figures show that commerce and content are becoming increasingly connected, while measurability is playing a greater role in how advertising budgets are allocated.

A Clear Shift in Investment

The latest AdEx Benchmark figures suggest advertisers are directing a growing share of budgets towards video and retail media, both of which outperformed the wider digital advertising market in 2025.

For retailers, marketplaces and brands, the report offers another indication of where advertising investment is increasingly concentrated across Europe as commerce-focused media continues to expand.

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Katarína Šimčíková
E-commerce Content Writer & EU Market Partnerships, Ecommerce Bridge EU

Partnership Manager & E-commerce Content Writer with 10+ years of international experience. Former Groupon Team Lead. Connects European companies with Slovak and Czech markets through partnerships and content marketing.

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