Retail Platform Advertising - EU-27

In the EU-27, ad spending in the Retail Platform Advertising market market is projected to reach US$15.95bn in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 11.53%, which will lead to a projected market volume of US$30.69bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market within the EU-27 is projected to amount to US$80.87 in 2024.
In a global context, the majority of ad spending will be generated the United States, which is expected to total US$57.63bn in 2024.
As EU-27 embraces digital transformation, retail platform advertising is increasingly prioritizing personalized consumer engagement strategies to enhance brand loyalty and drive sales.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in the EU-27 is experiencing mild growth, influenced by factors such as evolving consumer preferences, increased competition among platforms, and the need for targeted advertising strategies amidst changing regulations.

Customer preferences: Consumers in the EU-27 are shifting towards personalized shopping experiences, driving demand for retail platform advertising that highlights tailored product recommendations. The rise of eco-consciousness is prompting platforms to prioritize sustainability in their marketing strategies, appealing to environmentally aware demographics. Additionally, younger shoppers are increasingly favoring social commerce and influencer partnerships, as they seek authenticity and community in their purchasing decisions. This evolution necessitates adaptive advertising approaches to engage diverse consumer segments effectively.

Trends in the market: In the EU-27, the Retail Platform Advertising Market is experiencing a surge in personalized advertising strategies, as consumers increasingly demand tailored shopping experiences that resonate with their preferences. Concurrently, the trend toward sustainability is compelling platforms to integrate eco-friendly messaging into their advertising campaigns, appealing to the growing demographic of environmentally conscious shoppers. Additionally, younger consumers are gravitating towards social commerce and influencer collaborations, seeking genuine connections and community engagement. These trends necessitate innovative advertising solutions, presenting both challenges and opportunities for industry stakeholders aiming to capture diverse market segments effectively.

Local special circumstances: In the EU-27, the Retail Platform Advertising Market is shaped by diverse local factors, such as varying cultural attitudes towards consumerism and sustainability across member states. For instance, Northern European countries often prioritize eco-friendly practices, influencing platforms to adopt green messaging. Conversely, Southern European nations display a stronger inclination towards community-driven commerce, fostering unique influencer partnerships. Additionally, regulatory frameworks differ, with strict data privacy laws enhancing consumer trust but complicating targeted advertising efforts, ultimately shaping market dynamics in distinct ways.

Underlying macroeconomic factors: The Retail Platform Advertising Market in the EU-27 is significantly influenced by macroeconomic factors including overall consumer spending trends, inflation rates, and digital technology adoption. As economies rebound from the pandemic, increased disposable income in many member states is leading to higher online shopping volumes, which directly boosts advertising investment on retail platforms. Furthermore, variations in fiscal policies, such as VAT rates and subsidies for digital innovation, can either encourage or inhibit growth. Additionally, the ongoing shift towards e-commerce, accelerated by global digitalization trends, drives demand for more sophisticated advertising strategies that effectively target diverse consumer segments, ultimately shaping market dynamics.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. In some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.