IAB Europe releases updated retail media definitions for European markets

IAB Europe's Retail & Commerce Media Committee published updated pan-European definitions for retail and commerce media on March 26, 2025, establishing consensus across the National Federation and IAB network throughout Europe. The comprehensive framework addresses three distinct categories: on-site retail media, off-site retail media, and in-store digital retail media.

According to the updated definitions document, "Commerce Media Networks, which include Retail Media Networks, allow brands and merchants to address shoppers with products and services throughout their buying journey, both on and off owned platforms." The networks utilize commerce and retail data for planning, execution and measurement across an expanding range of activation environments.

The standardization effort comes as European retail media spending continues its rapid expansion. According to IAB Europe's data, retail media achieved 22.1% growth in 2024, outpacing the broader advertising market's 6.1% growth by nearly four times. This acceleration reflects significant budget reallocation, with performance advertising budgets contributing 55% of shifted investment into retail media channels.

Summary

Who: IAB Europe's Retail & Commerce Media Committee published the updated definitions, establishing consensus across the National Federation and IAB network throughout Europe.

What: Comprehensive pan-European definitions for retail and commerce media covering three categories: on-site retail media (advertising on owned digital properties), off-site retail media (retailer data overlaid on third-party inventory), and in-store digital retail media (advertising using retail data for in-store planning and measurement).

When: The updated definitions were released on March 26, 2025, building upon previous standardization efforts including September 2024's in-store measurement standards and ongoing certification programme development.

Where: The framework applies across European markets through IAB Europe's network, addressing the continent's €11.1 billion retail media market that achieved 22.1% growth in 2024.

Why: The standardization addresses industry fragmentation challenges, with 70% of buyers citing lack of retail media standards as investment barriers, while enabling unified measurement frameworks for the sector that outpaced broader advertising market growth by nearly four times.

Technical specifications define three advertising categories

The definitions establish clear parameters for on-site retail media as "advertising sold on a commerce platform or retailer's own digital properties." These typically encompass owned and operated websites and applications, featuring formats including Sponsored Products, Sponsored Display, and Display and Video advertisements.

Off-site retail media represents "the use of retailer data to be overlaid or coupled with inventory outside of a commerce platform or retailers owned and operated websites and apps." The inventory available through third-party partnerships includes display, video, social, Connected TV, Digital-Out-Of-Home, digital audio and email formats. The document notes that some retail media networks make email available, though it typically functions as customer relationship management or trade marketing initiatives.

In-store digital retail media covers "advertising in-store inventory that uses retail data for planning, execution and measurement which is available to brands." This category encompasses both digital formats including video, display and audio, alongside static inventory such as print and physical activations.

The framework provides a modular overview dividing retail and commerce media into three operational segments. Digital screens, audio, connected shopping, printed materials and experiential activations fall under in-store operations. Sponsored Products, Sponsored Display, and Display and Video formats comprise on-site activities. Publisher Display and Video, Connected TV, Social, and Audio constitute off-site implementations.

Commerce media networks expand beyond traditional retail

The definitions distinguish between retail media networks and broader commerce media networks. Retail media networks include retailers operating across grocery, beauty, fashion, DIY and home categories. Commerce media networks encompass travel and mobility services, payment providers, food delivery platforms and classified advertisement services.

This distinction reflects the expanding scope of commerce-driven advertising beyond traditional retail environments. IAB Europe's research indicates the European retail media market reached €11.1 billion in 2024, representing 22.2% growth from the previous year's €9.1 billion.

The growth stems from fundamental changes in consumer shopping behavior and retailers' recognition of their unique data advantages. Retail media networks offer advertisers access to first-party purchase data, enabling targeting based on actual buying behavior rather than inferred interest signals.

Measurement standardization addresses industry challenges

The updated definitions complement ongoing standardization efforts across European markets. IAB Europe previously released the first industry-wide measurement standards for in-store retail media in September 2024, establishing unified frameworks for definitions, ad formats, store zone classification, and measurement guidelines.

The standardization initiative addresses persistent challenges in the retail media ecosystem. According to recent survey data, 70% of buyers cite the lack of retail media standards as a significant barrier to investment growth. The absence of standardized metrics and definitions has hindered campaign effectiveness measurement across different retail media networks.

Industry collaboration continues advancing through IAB Europe's certification programme and measurement standards development, addressing the critical need for unified frameworks that enable transparent, comparable metrics across networks. The percentage of buy-side stakeholders maintaining retailer partnerships for more than one year increased from 50% to 63%, while brands working with four to six retail media networks more than doubled from 10% to 24%.

Digital advertising landscape transformation accelerates

The retail media definitions update occurs within broader European digital advertising market transformation. The European digital advertising market crossed €100 billion for the first time in 2024, reaching €118.9 billion with 16% year-over-year growth despite challenging macroeconomic conditions.

Digital advertising now commands 67.2% of total advertising expenditure across Europe, representing continued migration from traditional media channels. This digital dominance reflects structural changes in media consumption patterns, with European consumers increasingly engaging with content through connected devices and digital platforms.

The retail media sector's emergence as a dedicated category in IAB Europe's AdEx Benchmark Report reflects its evolution from niche advertising tactic to substantial market segment. Growth rates remained consistent across 2024 quarters at 16.9%, 15.5%, 15.1%, and 16.5%, suggesting a maturing market with predictable seasonal patterns rather than crisis-driven volatility.

Strategic implications for marketing community

The standardized definitions provide marketing professionals with clear terminology for evaluating retail media opportunities across different environments. The framework enables more sophisticated campaign planning by distinguishing between on-site performance objectives, off-site reach expansion, and in-store experience enhancement.

Budget reallocation patterns indicate strategic shifts in marketing priorities. Display advertising emerged as the primary source of reallocated funds into retail media at 55%, overtaking linear television's 45% share from 2024. Brand advertising budgets represented 60% of shifted investment, demonstrating retail media's expansion beyond performance marketing applications.

The technical specifications assist media planners in understanding inventory availability across different retail media network configurations. The modular approach allows for tactical deployment across multiple touchpoints within integrated campaign strategies.

Professional development opportunities include participation in IAB Europe's Retail Media Hub for ongoing insight and content development. The organization invites industry participation in its Retail & Commerce Media Committee to help shape the sector's evolution across European markets.

Market context reinforces standardization necessity

The retail media standardization effort addresses fragmentation challenges that have limited sector growth potential. Unlike established digital advertising categories with mature measurement frameworks, retail media has operated without many fundamental industry standards that have advanced other programmatic advertising sectors.

Technical infrastructure development continues with IAB Tech Lab's finalization of OpenRTB specification updates for product listing ads in January 2025. The new specification introduces critical changes to facilitate standardized programmatic media buying for product listing advertisements appearing on retail and ecommerce platforms.

The measurement standards published alongside the definitions reference IAB Europe and IAB In-Store Definitions and Measurement Guidelines, providing media buyers with frameworks for consistent metrics to compare retail media investments. Click-Through Rate measures how often shoppers click advertisements after viewing them, while Conversion Rate measures the percentage of clicks resulting in purchases.

Cross-regional alignment emerges through collaboration with international IAB organizations. IAB Australia's retail media measurement guidelines leveraged existing resources from IAB US and IAB Europe, demonstrating global coordination in establishing measurement best practices and standards.

The European market's structural characteristics support continued retail media expansion. Major European retailers have invested substantially in building sophisticated advertising platforms, with retail media expansion dividing into retail search and retail display advertising segments. Search demonstrates stronger growth momentum due to immediate purchase intent signals.

Timeline

• March 26, 2025: IAB Europe publishes updated Retail & Commerce Media Definitions establishing pan-European consensus across National Federation and IAB network
• January 25, 2025: IAB Tech Lab finalizes OpenRTB specification updates for product listing ads to standardize programmatic commerce media transactions
• September 18, 2024: IAB and IAB Europe release first industry-wide in-store retail media measurement standards for public comment period
• August 30, 2024: IAB Australia unveils retail media measurement guidelines leveraging frameworks from IAB US and IAB Europe
• May 21, 2025: IAB Europe releases AdEx Benchmark Report showing European digital advertising reached €118.9 billion with retail media achieving €11.1 billion
• April 17, 2025: IAB Europe publishes Guide to Sponsored Products revealing 22.1% retail media growth versus 6.1% total advertising market growth
• July 15, 2025: IAB Europe releases second annual Attitudes to Retail Media Report documenting partnership longevity increases and network diversification trends