IAB Compass: Navigating retail media
How to get the most out of IAB Compass
This chapter of IAB Compass, focused on the rapid evolution of retail media, is the latest addition to a body of research that so far spans AI, creator marketing, digital out-of-home, connected TV, gaming and shoppable advertising. Our aim is to guide advertisers, agencies and media professionals through the changing landscape of digital advertising by spotlighting high-growth areas, offering market forecasts, key trends and actionable insights to help industry stakeholders unlock the full potential of retail media.
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Retail media in numbers
£6.6bn
UK retail media spend forecast to surpass £6.6B in 2025, outpacing overall digital growth
4x
The retail media market in Europe is growing almost four times faster than the wider digital advertising sector.
£8.6bn
UK on-site retail media spend is projected to hit £8.6bn by 2030, growing at an average annual rate of 17% from 2024
Retail Media Forecast
Retail media has rapidly evolved from a performance marketing add-on into one of the fastest-growing channels in digital advertising. UK retail media spend is forecast to surpass £6.6 billion in 2025, outpacing overall digital growth, and projected to reach £8.6 billion by 2030, growing at an average annual rate of 17%.
Retailers are becoming media owners in their own right – monetising audiences through on-site, off-site and in-store ecosystems that connect every stage of the shopper journey. As cookies disappear, first-party data is driving precision targeting and closed-loop measurement that directly links ad exposure to sales.
Looking ahead, off-site and CTV activations are expected to grow two to three times faster than on-site placements, as brands pursue omnichannel reach and measurable outcomes. With AI-powered personalisation, video formats, and retail-driven creative innovation on the rise, retail media is on track to become a core component of marketing investment strategies over the next five years.
The Retail Media Opportunity & What to Do Next
Retail media offers brands a powerful combination of data, proximity, and accountability, bringing advertising closer to the point of purchase than ever before. It bridges commerce and media, allowing advertisers to reach shoppers in highly contextual, privacy-safe environments that deliver proven ROI.
Success now hinges on integration and collaboration. Advertisers should align retail media within broader media plans, not as a silo, and prioritise partners that provide transparent measurement, unified reporting and ethical data practices. Building long-term retailer relationships and experimenting with in-store, off-site, and CTV activations will unlock full-funnel impact.
As the market matures, AI-driven personalisation and omnichannel planning will separate leaders from laggards. Brands that treat retail media as a strategic, always-on channel – rather than a short-term sales lever – will be best placed to capture the next wave of growth across the evolving digital retail landscape.
Recommendations
- Treat retail media as a core, always-on channel integrated into brand planning
- Connect on-site, offsite and in-store activity for true omnichannel impact
- Prioritise transparent, third-party-verified measurement to prove ROI and build trust
- Use AI to personalise, optimise and scale retail media campaigns efficiently
- Embed ethical, privacy-first and sustainable practices to future-proof growth
Explore IAB Compass’ retail media findings in full
- Market Overview
- RMNs: a channel in their own right
- UK Breaking New Ground In Retail Media
- Strategic Opportunities
- Challenges and Risks
- Policy and Regulation
- Snapshot of the Future
- Recommendations
