Retail media has immense potential to revolutionise consumer engagement; however, in Europe, its adoption is hindered by a fragmented ecosystem and retailers’ reluctance to change. As the industry grapples with these challenges, the necessity for a long-term, strategic approach has never been more evident.

Il “Retail media in Europe is not just an advertising channel—it’s a strategic lever for building lasting consumer relationships. Brands that embrace fragmentation and invest in holistic strategies will unlock its transformative potential.” – J. J. Thompson

Retail Media: Beyond the Quick Fix

Traditionally viewed as a performance-driven, bottom-funnel tactic, retail media often encounters the drawback of being evaluated solely on immediate ROAS and conversion metrics. This limited perspective diverts brands from harnessing retail media’s wider capabilities: enhancing awareness, nurturing loyalty, and fostering sustained growth.

To unlock the full potential of retail media, brands must redefine their objectives. It’s not merely about bridging intent and purchase; it’s about nurturing brand-consumer relationships at every stage of the funnel. A comprehensive strategy should integrate retail media into broader brand-building efforts, ensuring that campaigns resonate long after the initial interaction.

The European Context: Fragmentation and Resistance

While the U.S. retail media market has surged ahead with consolidated platforms such as Amazon, Walmart Connect, and Target Roundel, Europe presents a different scenario. Fragmentation prevails, with each market dominated by a variety of players—Tesco, Carrefour, El Corte Inglés, and others—each utilising its technologies, advertising offerings, and metrics. This patchwork complicates the scaling of campaigns across borders and measuring their effectiveness.

Retailers often remain reluctant to adopt transformative retail media strategies. Many still prioritise their core business models, viewing retail media as an ancillary revenue stream instead of a mission-critical growth driver.

Data Speaks: The Untapped Opportunity

Retail media in Europe was valued at €25 billion in 2024 and is anticipated to grow at a compound annual growth rate (CAGR) of 15% over the next five years. Despite this growth, brands highlight two significant barriers:

1. Lack of standardisation across platforms, making cross-market strategies cumbersome.

2. Retailer buy-in: only 40% of European retailers have made substantial investments in developing scalable media networks, compared to 70% in the U.S.

However, brands that embrace fragmentation as an opportunity, not a hindrance, stand to win. By tailoring approaches to local ecosystems and leveraging unique shopper insights, they can create more profound, authentic connections with their audiences.

Embracing a Holistic Strategy

Here’s how brands can overcome challenges and maximise the potential of retail media in Europe:

• Invest in Measurement and Insights: Closed-loop measurement systems are essential. They enable brands to comprehend the long-term effects of campaigns on awareness, consideration, and loyalty, transcending essential sales attribution.

• Focus on Loyalty and Lifetime Value: Brands should develop incremental strategies that foster loyalty instead of chasing short-term sales. For instance, offering first-time coupons via retail media can drive initial sales, followed by in-store loyalty offers to encourage repeat purchases.

• Leverage Data to Drive Precision: Use shopper data to target high-value audiences. A fitness brand, for example, can market protein powders to consumers who recently purchased workout gear, aligning campaigns with lifestyle trends.

• Collaborate Cross-Functionally: Retail media strategies should integrate seamlessly across brand, retail, trade, and digital teams. Unified planning ensures that retail media isn’t siloed but supports overarching brand objectives.

Summary: Retail Media in Europe

Retail Media as a Brand Builder

Retail media’s fragmented landscape in Europe presents unique challenges, but also opportunities for brands willing to innovate. By adopting a marathon mindset—prioritizing sustainability, adaptability, and collaboration—brands can transform retail media into a cornerstone of their omnichannel strategies.

Retail media isn’t just a performance channel; it’s a brand-building powerhouse. And in Europe, the race has just begun.

At OmniShopper & Co., we specialise in guiding brands through the complexities of European retail media, helping them craft strategies to build lasting consumer connections.

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