13 European Markets Experienced Double-Digit Growth

Brussels, Belgium, 12th June 2024 – IAB Europe, the leading European-level industry association for the digital advertising and marketing ecosystem, has today released the AdEx Benchmark Report for 2023, revealing a strong 11.1% growth in the digital advertising market in Europe, reaching an all-time market high of €96.9 billion. Despite a challenging economic and geopolitical environment, digital advertising in Europe has shown resilience. 

Now in its eighteenth year, the AdEx Benchmark Report is the definitive guide to advertising expenditure in Europe, with data collected across 29 national markets to provide a total harmonised figure for Europe. For the first time this year, the report includes additional quarterly data, offering a deeper insight into the complex dynamics that contributed to digital advertising’s growth over the last three years. 

Key Highlights from the latest AdEx Benchmark Report include:

European Digital Advertising Market Saw Exponential Growth in 2023

The digital ad market grew by 11.1% in 2023, reaching €96.9 billion, surpassing other international markets, in terms of growth rate.

While the U.S. market is 2.5 times larger than Europe, Europe experienced a faster growth rate at 11.1% YoY vs a 7.3% YoY growth rate for the U.S. market. 

Most European Markets Showed Robust Gains 

Digital ad spending remained concentrated in the top European markets with the UK, Germany, France, Spain, and Italy making up 69% of total digital ad spend.

Most European markets showed robust gains overall in 2023 with 13 European markets seeing double-digit growth. Of those markets, 9 Central and Eastern European markets grew over the European average of 11.1% with Turkey seeing 50% growth, Serbia 27.6%, and Ukraine 25.2%. Growth in Turkey can largely be attributed to inflation. 

Video, CTV, and Audio Are Among the Fastest-Growing Formats 

Social ad growth rebounded in 2023 and grew by 18.2%, outperforming the display growth of 12.7%. Video advertising also played a crucial role in the growth of total display, increasing by 20.9% in 2023. It also saw substantial growth outside of social, with a 15.0% increase. 

Audio also revealed itself to be one of the fastest-growing formats again this year, experiencing an increase of 23.1%. New audio data in this year’s report also showed that podcasts were integral to driving total digital audio spend, growing by 32.5%.

CTV also grew by 23.5% in 2023 to outperform non-social video.

Programmatic Market Growth is Maturing

Programmatic still accounts for over 50% of total display (51.9%), but market growth in this area is maturing. This shift is partly driven by the increasing allocation of budgets to new and evolving channels such as CTV and Retail Media, as well as the exploration of alternative solutions in response to privacy concerns and the evolving landscape surrounding third-party cookies.

IAB Europe’s Chief Economist, Dr Daniel Knapp commented on the report saying “Digital advertising defied all odds in 2023 and grew by 11.1%. This can be attributed to interest rates improving, and the economy stabilising, giving advertisers greater confidence once more. While many remained cautious, we saw an increased recognition for more sustained spending, as brands looked to build presence back up and maintain a share of voice in the market. This period also saw a return of new companies and SMEs entering the market. As businesses have transformed to become increasingly more digital, advertising has evolved from a siloed function to a more integral part of the overall marketing strategy, helping to fuel 2023 growth.”

Looking more closely at the channels and formats that are driving digital advertising growth in Europe, Townsend Feehan, CEO at IAB Europe commented, “The 2023 AdEx Benchmark Report reveals robust growth across several key formats, highlighting key dynamic shifts and expanding opportunities in the digital advertising landscape. Social advertising's impressive 18.2% growth reflects the increasing engagement and effectiveness of social platforms in reaching diverse audiences, and video advertising's significant 20.9% growth, especially its 15.0% rise outside social platforms, underscores its critical role in the display ecosystem. We can also see how emerging channels such as audio advertising and Retail Media are contributing significantly to the overall rapid growth of our industry, offering brands more opportunities to innovate and connect with audiences in meaningful ways.”

Download the full report on IAB Europe’s website here. 

Notes:

AdEx Benchmark is the definitive guide to advertising expenditure in Europe. The data has been compiled by IAB Europe based on information provided by the national IAB offices around Europe. The report includes market size and value information for 2023 for the following markets: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkiye, UK and Ukraine. The data represents the calendar year 2023 January- December. This is the eighteenth AdEx Benchmark study which began in the calendar year 2006. 

The report provides a comprehensive perspective of digital advertising spend across Europe which is essential in benchmarking market development trends, the increasingly pan-regional nature of digital advertising investments, and the role of Europe’s digital economy in a global context, attracting global start-up funding and European policy formulation.

For more information please contact:

Lauren Wakefield
Marketing & Communications Director, IAB Europe
wakefield@iabeurope.eu - +44 (0) 7828 514 193

Helen Mussard
CMO, IAB Europe
mussard@iabeurope.eu - +44 (0) 7399 919 594

With a range of categories available, including audio, CTV, social media, retail media, and sustainability, there are plenty of opportunities to showcase the breadth of your work from across the last year to our esteemed panel of industry judges. With hundreds of entries anticipated from all corners of Europe, participating in the awards will also offer more than just recognition, it provides a platform for your work to be seen and celebrated by the industry throughout 2024 and beyond. 

The early bird deadline for the awards is open until Monday 20th May with the final deadline set for Friday 7th June. The 2024 winners will be announced at a virtual awards ceremony on Thursday 18th July. Hosted by IAB Europe, the ceremony will be live-streamed to ensure that anyone from across Europe can participate. Winners will also be invited to participate in a series of IAB Europe webinars and podcasts on 2024 creativity in digital advertising. Promoted across IAB Europe’s network of National IABs and corporate members, it will be a great opportunity to promote and celebrate the very best of our industry by doing a deep dive analysis into the strategy, creativity, and results of the 2024 winners. 

Why Enter the MIXX Awards Europe 2024?

Winners of the awards are renowned in the industry for having delivered some of the most impactful and innovative work that Europe has ever seen. Here’s why you should enter:

• Gain industry recognition for your campaigns or research projects
• Get your work in front of industry leaders across Europe
• Develop business opportunities
• Benchmark your work against competitors
• Inspire the community
• Challenge and reward your team

Enter Now For Early Bird Discounts

Enter before the early bird deadline on Monday 20th May, to make the most of the discounted entry fee! You can find the entry notes here and FAQs here to help you make sure your entry is on track. We also recommend entering your work into multiple categories to get maximum visibility for your project or campaign.

Submit your entries here for MIXX Awards Europe.

The final deadline for all entries is Friday 7th June.

Brussels, Belgium, 30th April 2024 - Today, IAB Europe, in collaboration with Microsoft Advertising, released their first research study on Generative Artificial Intelligence (Gen AI) in digital advertising. This research provides valuable insights into the rapid adoption, diverse applications, and pressing educational needs surrounding Gen AI.

This survey leveraged IAB Europe’s network of national IABs and corporate members across Europe and received 146 respondents, with nearly 50% of respondents having over 10 years of experience working in the digital advertising industry across a variety of departments and markets in Europe.

Generative AI (Gen AI) is set to revolutionise digital advertising by automating tasks, personalising content, and driving data-driven decisions. The study shows strong adoption with 91% of respondents already using or experimenting with Gen AI. 41% of respondents said that they have a specific budget assigned to experiments with and using Gen AI, whilst half are fostering AI talent within the team (e.g. upskilling current teams and hiring new talent). Additionally, almost one-third said that their company is providing dedicated days and time for team members to learn about AI. 

Beyond operational streamlining, professionals are increasingly leveraging Generative AI for content creation and creative endeavours. More than two-thirds said they were using Gen AI within their business to develop content followed by half of respondents using it to develop creatives. 

The study also highlights a clear demand for enhanced education within the industry, with 89% of respondents calling for more training initiatives. Additionally, it emphasises the importance of transparency and trust, as stakeholders navigate the integration of AI technologies into their workflows.

Commenting on the study, Marie-Clare Puffett, Insights & Industry Development Director of IAB Europe said “As the digital advertising landscape evolves, embracing Gen AI is essential for staying ahead of the curve. By addressing the educational gaps and fostering transparency, stakeholders can harness the full potential of this innovative technology. This month, IAB Europe launched a new Gen AI Working Group which aims to foster a collaborative and informed community, and empower stakeholders across the digital advertising ecosystem with the knowledge, resources, and support necessary to navigate the evolving landscape.”

Mascha Driessen, Microsoft Advertising's Europe Regional Vice President, added "This research demonstrates that adoption is rising, and it's exciting to see the impact that generative AI is already having on creativity, productivity, and performance. At Microsoft Advertising, we believe that these innovations will help everyone, everywhere, across the advertising ecosystem to achieve more than we ever imagined. However, it will take a focus on learning, experimentation, and partnership to tap into the transformative power of generative AI."

For more information and to access the full report, visit the IAB Europe website here. 

Jessica Wegner, Vice President New Business & Retail Media at DOUGLAS Marketing Solutions commented on the importance of these standards: “In the advancing landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardisation. According to IAB Europe research, only half of buyers currently recognise the efficiencies of Retail Media and seek consistent measurement and standards. To unleash the full power of Retail Media, addressing this critical gap through standardised measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardisation, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.”

The Retail Media Measurement Standards were developed following consultations with retailers, media buyers (brands and agencies) and cover the following areas:

• Primary Media Metrics (including viewability, IVT) to ensure digital retail media ads adhere to the same standards as other digital ads
• Attribution Metrics to ensure that brands are able to compare their advertising investments using a standard lookback window and iROAS definition
• Additional Retail Media Insights to further elevate the unique insights that retail media networks can provide such as ‘New to Brand’

The full standards can be viewed here alongside the FAQ document here. 

Commenting on the need to equip retail media stakeholders with standards to help drive investment and market sophistication, Jason Wescott, Chair of IAB Europe’s Retail Media Committee, and Global Head of Commerce Solutions at GroupM said: “IAB Europe’s Q3 2023 Retail Media Standards Survey revealed a significant hurdle to investment: over two-thirds of respondents cited the absence of standards. In response, we convened fifteen top regional retail media firms in January 2024 to pioneer IAB Europe’s inaugural Digital Retail Media Standards. This initiative addresses the intricate landscape of onsite, offsite, and digital in-store media, alongside e-commerce and omnichannel commerce metrics. With diverse offerings from numerous retail media owners, achieving unity is paramount. The Retail Media Standards project is a cornerstone of our 2024 agenda, and this launching version marks a substantial stride toward harmonising and streamlining the region's industry for advertisers.”

Commenting on IAB Europe’s drive to support retail media across Europe, Townsend Feehan, CEO of IAB Europe said  “With the publication of the first set of European Retail Media Measurement Standards, we affirm our dedication and commitment to providing industry stakeholders with a robust framework that ensures consistency across the ecosystem and enables Retail Media to thrive.  These standards not only establish much-needed uniform metrics but also foster transparency, making room for greater innovation and investment in this space. I am excited to see how this pivotal step allows us to collectively drive Retail Media forward over the next 12 months and beyond.”

To access more information, industry education, and intelligence about Retail Media in Europe, please visit IAB Europe’s dedicated retail media hub on its website here. 

Although a consistent EDPB position was desirable to ensure harmonisation across the European Union,  IAB Europe has grave reservations the Opinion published last week is at odds with the prevailing jurisprudence of the CJEU and highly mischaracterizes both the ‘consent or pay’ model and personalised advertising.

As a result, the Opinion is likely to create the opposite effect, namely increasing legal uncertainty for many businesses beyond large online platforms and may ultimately undermine the ability for users to access diverse sets of services and content online for free.

First, the EDPB dedicates large parts of the Opinion to make overly abstract assumptions about the underlying functioning of personalised advertising, suggesting that this form of advertising would be inherently irreconcilable with the GDPR principles of data minimisation and fairness. 

Those allegations are not demonstrated or substantiated in any way, yet they are used to misrepresent the ‘consent or pay’ model as transforming data protection rights into “a feature that data subjects have to pay to enjoy, or a premium feature reserved for the wealthy or the well-off.” This cannot be followed, as the GDPR precludes unlawful data processing irrespective of the legal basis of processing, including consent, and provides Supervisory Authorities with extensive investigative and corrective powers to supervise the correct application of the GDPR.

Second, the EDPB introduces the provision of a third option, namely a “free alternative without behavioural advertising” as a quasi-mandatory condition for obtaining valid consent without adducing any empirical research or other evidence to justify why companies should develop another version of their service free of charge and funded by a different form of advertising such as contextual.

It must be stressed that contextual advertising is not always a viable monetisation alternative. Yet, no company can be required to provide their product and services at a loss. Moreover such a requirement is not supported by the GDPR which is not intended to interfere with the business models chosen by companies. This approach blankly ignores the required balance between the right to data protection and the freedom to conduct business, neither of which is absolute, as clearly provided by Recital 4 of the GDPR.

It is concerning to see the EDPB prescribing, by means of a soft-law instrument, an unprecedented interpretation that is neither enshrined by the law nor supported by the established position of the CJEU, based on fundamentally flawed assumptions of the digital advertising industry and simply overlooking stakeholders’ commercial realities.

As the EDPB intends to subsequently develop Guidelines pertaining to the ‘Consent or Pay’ model with a broader scope, IAB Europe reiterates its earlier statement and emphasises the importance to initiate a public consultation to ensure the development of sound policy guidance that takes account of all pertinent stakeholders’ concerns and interests.

IAB Europe has announced the first confirmed speakers for its annual flagship event Interact 2024. In partnership with IAB Italy, the latest edition of Interact will take place on the 21st - 22nd of May at Magna Pars in Milan, where leading European advertisers, industry experts, agencies & media owners will gather to tackle the industry’s most critical challenges and innovative opportunities head-on.

With a central theme of ‘The Big Questions. The Sharp Answers.’ speakers from Diageo, Telecom Italia Mobile (TIM), Mail Metro Media, RTL, Scope3, IAS, Samsung Ads, and many more will take to the stage to address and provide answers to the most pressing industry questions of today. 

Join to hear from the following speakers and more:

• Tiernan Omorain, Digital Transformation Director at Diageo 
• Alessandra Marinacci, Head of Brand at Telecom Italia Mobile (TIM) 
• Martin Hoberg, Chief International AdTech Officer at RTL Germany 
• Lauren Dick, Executive Director at Mail Metro Media
• Michael Isaacs-Olaye, Director, Business Development at IAS
• Beatriz Pérez, Head of Sales, Italy & Spain at Samsung Ads
• Arthur Millet, Director General at Alliance Digitale 
• Christer Ljones, Director of Advertising Data Capabilities at Schibsted 
• David Cohen, CEO at IAB 
• Paul-Antoine Strullu, Head of EMEA at Scope3

The two-day conference will go beyond traditional keynote speeches and panel discussions with outstanding industry experts, brands, agency representatives, and publishers sharing their experiences, inspirations, and solutions to the industry’s biggest questions live on the Interact conference stage. From Ad Spend and AI to Retail Media, Privacy, Policy, Sustainability, and more each session on the agenda will focus on a thought-provoking question with answers being shared from the diverse speaker line-up. 

Expect to gain answers to the following questions and more:

• Are sustainability strategies delivering across the value chain?
• Is the industry ready for the end of third-party cookies?
• Where is the business value of AI for digital advertising?
• Is TV programmatic buying finally going mainstream?
• After the hype, is it time for a reckoning for retail media?
• In "polycrisis" times, what outcomes should digital advertising be delivering?
• How can publishers reinvent their digital advertising business?
• What do buyers really want from digital advertising?
• Where is future digital advertising growth coming from?
• What comes next for digital advertising regulation?

For more information on Interact 2024 and to view the first line-up of speakers, please visit the event website here. 

Register now to secure your ticket!

Registration for the event is available here with early-bird discounted tickets available until 12th April. Tickets are selling quickly so secure your place today. 

GHG emissions associated with the internet, devices, and supporting systems are thought to constitute nearly 4% of global emissions. With an industry-wide mandate to reduce this footprint, the first step is for companies within the digital advertising ecosystem to estimate their own emission contributions, so that they can demonstrate the true environmental cost of each digital advertising campaign to their partners. Yet, with so many tools and solutions coming to the market and no standards in place at the moment, it is extremely difficult for stakeholders to know where to start when looking to estimate, understand, and reduce the impact of their digital advertising efforts.  

This comprehensive report provides a transparent view of the wide variety of frameworks and solutions developed and adopted in Europe to estimate and reduce the scope 3 emissions produced by digital advertising. Each solution was examined through the prism of the features and attributes that IAB Europe member companies find to be most relevant and likely to inform decision-making. It helps stakeholders from across the ecosystem to understand how current options may differ when it comes to data, supply chain boundaries, and the methods used to model scope 3 emission sources and tailor their strategies to meet sustainability objectives. 

Participating organisations in the report include SRI/Alliance Digitale, GroupM, Dentsu, DIMPACT AdGreen, Scope3, Good-Loop, IMPACT+, Cedara, DK and SeenThis. The in-depth information on each framework or solution was collected from each participating organisation across a four-month period and provides additional context for each as relevant to the nine categories that represent the different aspects of GHG estimation solutions. 

Commenting on the release of the report, Arthur Millet, Chair of IAB Europe’s Sustainability Standards Committee, said, "There is a great deal of momentum in Europe around measuring and reducing greenhouse gas emissions from digital advertising. The major media groups and trade associations are heavily involved, as are the many companies that have been set up to meet this challenge. There is a need for a better understanding of the methodologies and data used to measure the carbon impact of digital advertising. To this end, common methodological approaches are gradually being put in place at national and now global level. Our approach with the IAB Europe is helping to bring greater transparency and genuine cooperation between players to harmonise methodologies and data."

Key insights from the report include:

• Data availability is seen by vendors as the main challenge to improving the robustness of estimates.  
• Quantitative descriptors of uncertainty are often missing in LCA databases, corporate reports, research, and other data sources, leading many solutions to adopt qualitative data assessments. 
• There is a critical importance for a collaborative and transparent ecosystem, where stakeholders can navigate and utilise data that describes emissions sources effectively.

Dimitris Beis, IAB Europe’s Data Analyst & Sustainability Manager, who compiled the report, also commented, “It is clear from the report that more work is required to move the industry toward a more sustainable mode of operations. As these solutions are developed further, it is crucial to understand their accuracy, how they can be improved, and how we can use them to drive consistent estimation (of environmental impact). In the meantime, industry professionals should contribute to the transition progress by selecting solutions thoughtfully with the help of this report. They should also encourage greater collaboration through industry initiatives, such as IAB Europe’s Sustainability Standards Committee, and engage in advocacy within their organisations.” 

“At IAB Europe, we will continue to analyse the solutions available in the market and provide updates through future iterations of this report. We will further address the challenges identified in this analysis, continue to share recommendations to help reduce GHG emissions, and support an industry-wide move towards a standardised framework to accelerate progress.”

The IAB Europe Mapping of Greenhouse Gas Estimation Solutions in Digital Advertising can be viewed here 

The letter recommends ensuring that the EDPB’s position further builds upon existing case law and guidelines across the European Union and European Economic Area, and that there is proper cooperation with competition and consumer protection authorities when considering the notion of “reasonable” or “appropriate” pricing.

Furthermore, the letter highlights that an overwhelming majority of Europeans want to decide which online services they pay for on the one hand and which ones on the other hand they don’t have to pay for because they are funded by advertising. The letter also rebuts the allegation that the “Consent or Pay” model amounts to “paying” for data protection rights, given that the GDPR must be complied with at all times, including after consent has been given.

The letter can be found here. For more information, please contact Ninon Vagner, Privacy Director, IAB Europe - vagner@iabeurope.eu / Helen Mussard, CMO, IAB Europe - mussard@iabeurope.eu

Why Transparency Matters in Digital Advertising

Transparency is the bedrock of a healthy and efficient digital advertising ecosystem. It empowers stakeholders to make informed decisions, build trust, and ultimately contributes to the growth of a responsible industry. The latest edition of this comprehensive guide provides stakeholders with critical questions to be posed at various stages of the supply chain, facilitating a deeper understanding and fostering accountability among participants. The guide also has an accompanying prezi style animation feature. This allows each stakeholder group to select whom they are talking to and what they will be discussing. It then provides the reader with a set of questions to ask to increase transparency and understanding. 

The 2024 Edition: Sustainability Takes Center Stage

The 2024 edition of the guide marks a significant milestone with the inclusion of questions addressing sustainability – a testament to the industry's recognition of its environmental impact. As the digital advertising landscape evolves, understanding and mitigating the environmental consequences of programmatic advertising become imperative. The new sustainability-focused questions underline the guide's commitment to promoting environmentally responsible and socially conscious practices.

Sustainability Implications:

The questions in the guide carry direct implications for sustainability considerations. For instance, the inquiry into header bidding mechanisms acknowledges the energy consumption associated with this approach, prompting stakeholders to weigh the environmental impact against its benefits. Similarly, questions related to inventory source and bid request deduplication delve into practices that directly influence energy efficiency and environmental sustainability.

The guide prompts stakeholders to evaluate their choices in terms of energy consumption, reselling practices, and bid optimisation strategies. It encourages a holistic approach to sustainability, urging participants to consider the entire lifecycle of digital advertising, from data sourcing to ad delivery, and assess the associated environmental implications.

IAB Europe's Supply Chain Transparency Guide, crafted by the dedicated members of the Programmatic Trading Committee, sets the stage for a more accountable, transparent, and sustainable digital advertising future. Please see below for key sections. The full guide and accompanying prezi animated report can be accessed here. 

The Supply Chain Transparency Guide and its sustainability-focused questions provide a framework for stakeholders to evaluate and improve their practices. As the digital advertising landscape continues to evolve, ongoing collaboration and commitment to responsible practices will be key in shaping a sustainable future.

IAB Europe welcomes the CJEU ruling that provides well-needed clarity over the concepts of personal data and (joint) controllership, which will allow a serene completion of the remaining legal proceedings.

In particular, the judgement of the Court establishes that:

(i) TC Strings (digital signals containing user preferences) constitute personal data, even from the perspective of IAB Europe, when they can be linked with reasonable means to an identifier such as for instance the IP address of the device of the user and IAB Europe can have access to such data;

(ii) IAB Europe can be viewed as a joint controller together with TCF participants in relation to the creation and use of TC Strings by publishers and vendors, on the basis that the TCF provides specifications for its processing, if IAB Europe actually influences the processing (purposes and means) for its own reasons.

(iii) IAB Europe should not necessarily be viewed as a joint controller together with TCF participants in relation to the subsequent data processing performed in pursuit of the TCF purposes, such as digital advertising, audience measurement, or content personalisation since IAB Europe has no influence on such processing. The CJEU conclusion on the latter is particularly important, as the APD’s erroneous controllership qualification of IAB Europe over such processing served as a basis for the authority’s assessments of the validity of legal bases established through the TCF and corresponding sanctions.

The Belgian Market Court will now resume its examination of IAB Europe’s substantive arguments in line with the answers provided by the CJEU. Pending the conclusion of the proceedings before the Market Court which can take several months, the suspension of the execution of the APD decision (i.e. the implementation of IAB Europe’s action plan following its validation) continues to apply.

IAB Europe will be posting a more in-depth commentary of the ruling and of its consequences shortly. Although it was adopted specifically in the context of the TCF-related dispute before the APD, the findings of the CJEU are important for all organisations with digital activities.

An updated FAQ regarding the APD decision can be found on IAB Europe’s website, here.

Press contact: 

Helen Mussard, CMO, IAB Europe - mussard@iabeurope.eu –  +44 (0) 7399 919594

About IAB Europe:

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers and to the market, and developing and facilitating the uptake of harmonised business partners that take account of changing user expectations and enable digital brand advertising to scale in Europe. 

As Retail Media continues to grow as an advertising channel, media buyers must have consistent metrics with which to compare their investments. In 2023, IAB Europe found that 70% of buyers cited the lack of standards for Retail Media as a barrier to investment, with media and attribution measurement being cited as the most important areas to address first.

The recommended standards were developed following IAB Europe’s Retail Media Measurement Workshop which brought together 15 retailers from across Europe. This feedback was combined with the ongoing discussions from IAB Europe’s Retailer Council and Retail Media Committee. 

IAB Europe also recognises that progress has been made on the development of Retail Media metrics definitions in other markets (e.g. IAB US, BVDW in Germany, and ISBA in the UK) and this work was used to form the basis for discussions within the Workshop. For example, IAB Europe’s recommendations incorporate most of the elements from the Now and Next sections of the ISBA “Responsible Retail Media Framework”. 

The recommendations address the following areas:

• Primary Media Metrics (including viewability, IVT) to ensure digital retail media ads adhere to the same standards as other digital ads
• Attribution Metrics to ensure that brands are able to compare their advertising investments using a standard lookback window and iROAS definition
• Additional Retail Media Insights to further elevate the unique insights that retail media networks can provide such as ‘New to Brand’

The standards document can be viewed here alongside the FAQs document. The recommendations are open for public comment until the 29th of March 2024. Please send your comments to retailmediastandards@iabeurope.eu 

Jason Wescott – Chair of IAB Europe’s Retail Media Committee, and Global Head of Commerce Solutions at GroupM commented on the development of the standards: “There is no clearer example of the importance of IAB Europe and our Retail Media Committee than this work on Retail Media Measurement Standards. Whilst a rapid increase in the number of retailer advertising offers is a wonderful thing for our industry, it has made planning and buying more complicated, with accurate comparisons across providers burdensome, if not impossible. 

We brought the region’s leading digital retail media businesses together to collaborate on a common set of standards that will not only ensure retailers can be consistent with existing digital media standards, but also encompass consistent, retail-centric, metrics spanning sales attribution and sales/consumer insights. This consistency will be a big step towards making the region’s industry more unified and accessible for advertisers. I’m excited to see the first version of these standards and for future iterations, as this channel will continue to evolve.”

Jessica Wegner, Vice President New Business & Retail Media at Douglas Marketing Solutions commented on the importance of these standards: “In the dynamic landscape of digital advertising, Retail Media emerges as a crucial media solution, yet its potential was hindered by challenges such as the lack of standardisation. Only half of buyers currently recognise its efficiency, seeking standards and regulations. To unleash the full power of Retail Media, addressing this critical gap through standardised measurement methods is paramount. Moving beyond traditional KPIs like ROAS or CPC, the focus on standardisation, particularly in media and attribution measurement, holds the key to unlocking its true efficiency.

As Retail Media continues to deliver remarkable results, the recent milestone of IAB Europe releasing the first European Retail Media Measurement Standards is a transformative step. This marks a future-changing development, emphasising the increasing acknowledgment of Retail Media's significance.”

Following the feedback process, IAB Europe will issue a first version of Retail Media Metrics and Measurement Standards for Europe. IAB Europe also intends to continue to work on developing standards for Digital Retail Media advertising with addressable areas including creative ad formats, brand metrics, and in-store measurement. 

IAB Europe will host a webinar on the 19th of March to provide a deep dive into the recommended standards and provide the opportunity for audience questions. Register to join the webinar here. 

To access any more information, industry education, and intelligence about Retail Media in Europe, please visit IAB Europe’s dedicated retail media hub on its website here. 

• Only 30% of advertisers and publishers have full transparency of CTV ad placements
• 27% never or rarely have insight into the brand suitability of their campaigns
• 1 in 3 impressions serve into CTV environments that don’t pause when the TV is off
• Less than half of advertisers and publishers use quality verification on CTV

Brussels, Belgium – 22nd February 2024 – Amid fast-growing interest and investment in Connected TV (CTV) across the UK and Europe, a new report reveals that CTV advertising is still struggling with a lack of transparency and a need for quality verification. Only 30% of advertisers and publishers have full transparency into where ad placements appear, and 27% never or rarely have insight into the brand suitability of the shows ads run alongside. These findings are part of a study conducted by DoubleVerify (“DV”) (NYSE: DV), a leading software platform for digital media measurement, data, and analytics, in collaboration with IAB Europe, the leading European-level association for the digital advertising and marketing ecosystem.

The report, which surveyed over 420 senior advertiser and publisher executives, complements the results of an analysis conducted by DV last year, which found that one third of impressions served into CTV environments don’t pause when TVs are turned off. These wasted impressions, coupled with the lack of transparency, the rise in ad fraud, which tripled between 2020-2022, brand suitability violations, and geo-relevance concerns all pose a challenge to CTV in the UK and Europe delivering its full potential. Especially as demand for CTV grows beyond what individual broadcasters alone can serve.

Transparency and measurement were cited by respondents as key issues, with a major challenge for both advertisers and publishers being the availability and quality of measurement data on CTV. However, according to this latest report, while verification on CTV buys is being increasingly considered to support quality outcomes, only 37% of advertisers and 41% of publishers have fraud protection. Meanwhile, only 44% of advertisers and 39% of publishers are measuring whether their ads have been viewed. 

Despite these obstacles, optimism surrounding CTV remains high. 95% of advertisers and 89% of publishers strongly believe that addressability and actionability are on the horizon for CTV, which will help advertisers drive outcomes from their campaigns and consequently encourage greater publisher investment. 

For advertisers, CTV is an attractive prospect in that it provides an opportunity to access premium programming at scale — expanding and augmenting audiences they may already reach on linear TV. Half (51%) of respondents cited scale as one of their key priorities. And even though CPMs on CTV are typically higher than those of other digital channels, 51% of advertisers also see investing in CTV as a way to achieve cost efficiencies compared with linear TV. 

For publishers, the focus is on providing high-quality inventory and qualified audiences to expand yield and deepen revenue. The top priority for 51% of publisher respondents is convincing new partners to begin advertising on CTV. This is closely followed by increasing CTV revenues with new (46%) and existing clients (45%), as well as extending audiences (38%) to help their advertiser partners amplify their reach. 

“The burgeoning development of the CTV market will be a lightning rod for European brands in 2024, with the results of this report indicating that media buyers are swiftly aligning their strategies to accommodate the unique objectives and opportunities the medium supports, ” said Nick Reid, SVP & Managing Director EMEA at DoubleVerify. “In the face of this expansion, transparency is clearly a limiting factor for more sure-footed investment and reliable results. As we collaborate with IAB Europe to promote transparency and quality verification, I am excited to see how advertisers and publishers propel the next stage of European CTV.”

"Our report with DoubleVerify confirms there is good reason to be optimistic that CTV advertising will see continued growth in the UK and Europe, and media planners should be looking eagerly at how CTV advertising can augment and drive results,” said Helen Mussard, Chief Marketing Officer at IAB Europe. "However, it has also shone a light on a glaring need for verification and greater quality control. Once addressed, brands will be able to enjoy the full benefits of this transformative channel.”

“CTV shows strong potential in markets with robust retailer data availability and capabilities, serving as a catalyst for driving revenue,” said Olya Dyachuk, Global Media & Data Director, The Heineken Company. “Unlocking this potential hinges on integration at media planning and execution levels and incorporation of CTV into the media mix seamlessly alongside traditional AV and Programmatic Online Video. Planning for high quality inventory, contextual relevance, and brilliant fit-for-purpose creative are also critical for success in the CTV space. This unified approach allows for optimum attention, resulting in better mental availability and maximum brand impact.” 

“Understanding precisely where your advertisement is placed and having the ability to drive optimisation is as crucial as ever for brands,” said Alex Thomas, Director, Brand Safety & Responsible Investment, GroupM. “The CTV landscape has historically grappled with fragmentation and technological limitations, hindering the development of these vital elements through the ecosystem. While progress has been made, it's evident there is still room for further advancement, which is key to reducing brand safety and suitability concerns across CTV.”

The report, The Power and Potential of CTV in Europe, explores the state of CTV adoption throughout the UK and Europe, what advertisers and publishers can hope to get out of their investments, what they can expect over the next few years, and what challenges they face in CTV adoption. This includes the truth about CTV quality, transparency and brand suitability. Spokespeople from the following organisations provided qualitative contributions to the report: The Heineken Group, easyJet, Samsung Ads EMEA, Omnicom Media Group UK, GroupM, the7stars, e-dialog, Jellyfish, Microsoft Advertising, Magnite, PubMatic and Yahoo. Download the report here.

*The research took place between June and August 2023 and leveraged the national IAB network in Europe. It received 422 advertiser and publisher responses from across 29 markets. The respondents were split evenly, with 51% representing advertisers and 49% representing publishers. For this report, DoubleVerify and IAB Europe have designated advertisers and agencies as “advertisers” and publishers, media owners, broadcasters and CTV apps as “publishers.”

For more information:

doubleverify@bluestripegroup.co.uk 

About DoubleVerify

DoubleVerify (“DV”) (NYSE: DV) is the industry’s leading media effectiveness platform that leverages AI to drive superior outcomes for global brands. By creating more effective, transparent ad transactions, we make the digital advertising ecosystem stronger, safer and more secure, thereby preserving the fair value exchange between buyers and sellers of digital media. Learn more at www.doubleverify.com.

About IAB Europe

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers, and to the market, and developing and facilitating the uptake of harmonised business partners that take account of changing user expectations and enable digital brand advertising to scale in Europe. Learn more at https://iabeurope.eu