[Watch on Demand] IAB Europe's State of the Nation 

Watch the recording here.

We wrapped up 2024 with our State of the Nation webinar, presented by our Chief Economist, Dr. Daniel Knapp. This insightful session offered a thorough analysis of the trends and transformations that defined digital advertising in 2024 and provided a forward-looking perspective on what’s in store for 2025. Packed with key data and actionable insights, this was a must-attend event for anyone navigating the rapidly evolving digital advertising landscape.

Here Are The Key Highlights: 

Economic Context and Advertising Growth
We explored the economic forces that shaped 2024, with Dr. Knapp detailing the impact of the "polycrisis", which refers to multiple crises that are codependent and augment each other, making it challenging to make economic predictions. Despite the economic uncertainty and presented data from the IMF and Eurostat, showing a slower-than-expected GDP growth across Europe, digital advertising showed resilience, exceeding projections in several areas. This growth was fueled by creative disruption and the emergence of new market players.

Looking ahead to 2025, we anticipate a deceleration in growth, with digital advertising in Europe projected to see mid-to-low single-digit expansion. This slowdown reflects a natural shift as the digital advertising market matures and stabilises. The robust levels of investment across the industry indicate continued confidence in digital channels, but as the market reaches maturity, we should expect single-digit growth to become the norm rather than the exception. While some markets and channels will outperform others, this stabilisation underscores the industry's resilience and its solid foundation for sustainable growth.

Programmatic and AI Innovations
The evolution of the programmatic ecosystem was a key focus of the session. Dr. Knapp highlighted the increasing concentration of demand and the need for robust infrastructure to support more complex transactions and sophisticated attribution models.

We also delved into the role of AI in advertising. While AI is becoming an integral part of many strategies, its full potential remains untapped. A gap persists between AI capabilities and their practical applications in business, but it is clear that AI will play a transformative role in the future of digital advertising.

Retail Media and Emerging Channels
Retail Media stood out as a dynamic growth area, with its expansion into retail-adjacent networks driving new opportunities. Although retail media is not yet large enough to significantly shift the advertising landscape, its influence is growing, and we expect further consolidation in this space as retailers push for more streamlined solutions.

Channels like Connected TV (CTV) and Digital Out-Of-Home (DOOH) are also poised for further expansion, driven by advancements in programmatic technology and measurement tools. These channels offer advertisers increasingly precise and impactful ways to engage audiences.

Predictions for 2025

• Growth Forecast: We expect total digital advertising expenditure in Europe to grow by 6.1%, led by CTV, Retail Media, and social media.
• Focus on Measurement: Enhanced measurement, attribution, and signal acquisition will be critical for driving decision-making and proving ROI.
• Integration of Content and Commerce: The blending of content media with retail commerce media will gain momentum, supported by creative partnerships and innovative monetisation models.

Key Takeaways 

• Economic uncertainty and interconnected crises will continue to shape the advertising landscape in 2025.
• Advertising growth will slow down in 2025, with key European markets being more exposed to macro volatility.
• Retail Media and CTV are set to be the primary drivers of digital advertising growth.
• Programmatic advertising must evolve to handle more complex data and attribution requirements.
• AI’s role in advertising strategies will expand, though its measurable impact remains in the early stages.
• Retail media is expanding, but consolidation is expected in the space.
• Measurement and attribution will be a key focus in 2025, with retailers needing to provide comparability to other media channels.

If you're an IAB Europe member and would like to request a copy of the presentation slides, please reach out to Nicole Laleva, Marketing & Events Coordinator at laleva@iabeurope.eu.