The value of advertising in retail media is heading towards one billion euros
It is being adopted more and more by modern retail chains as its role in communication strategies changes
The retail media market is seeing double-digit growth, that is, the various forms of online and offline advertising space that modern retail chains make available to advertisers both in physical shops and on websites and apps, and by the end of the year it will reach a turnover of 920 million, representing 23 per cent growth compared with 2025. This growth is driven primarily by onsite advertising, which accounts for 91 per cent of the value and is growing by 22 per cent, whilst in-store advertising accounts for 9 per cent and is growing by 28 per cent. A further 130–140 million euros is generated by off-site messages on third-party channels and websites. This is according to the ‘Politecnico di Milano Retail Media Working Group’, which highlights how this development is supported both by new initiatives and by the consolidation of offerings from major international e-commerce platforms. For retail chains, retail media represents an opportunity to generate new sources of revenue by monetising data and advertising space and, at the same time, to improve and personalise the customer experience. On the demand side, interest is also growing among non-endemic brands, which can reach qualified audience segments in contexts where there is a high intent to purchase.
“Italian retail media is entering a new phase of development: the market is growing, the range of offerings is expanding and, above all, the role this tool plays in communication strategies is changing,” comments Denise Ronconi, director of the Retail Media Working Group at the Digital Innovation Observatories of the School of Management at the Politecnico di Milano. We are no longer just talking about a medium closely linked to conversion: the move towards off-site channels, the growing interest from non-endemic brands and the integration across channels make it possible to reach consumers throughout the entire customer journey, from awareness right through to purchase. This is an important shift, because it moves Retail Media beyond a purely tactical approach and increasingly positions it as a strategic lever in brand planning.”
Globally, the value of retail media is estimated at over 200 billion dollars, representing a 16 per cent increase by 2025, equivalent to approximately 22 per cent of digital advertising spend, with the prospect of exceeding 300 billion by 2030. China and the United States are the leading markets, with $81 billion and $73 billion respectively, accounting for around 77 per cent of the total value. Europe is also gaining momentum: by 2026, the market will exceed €20 billion.
Over the last 18to 24 months, the leading modern retail chains have implemented strategies to capitalise on this revenue opportunity; in 44 per cent of cases, this has become a strategic priority with management sponsorship and dedicated resources, whilst in a further 37 per cent of cases it is regarded as a strategic asset for the company, with an autonomous organisational structure.
“The growth in volumes is just one part of the transformation we are witnessing, and retail media is making a strong entry onto the development agendas of Italian retailers,” explains Elisabetta Puglielli, Director of the Polimi retail media working group. For 44 per cent of the operators analysed, it is already a strategic priority, with formal objectives, management sponsorship and dedicated resources, whilst in the most mature cases it is becoming a genuine corporate asset, with an autonomous organisational structure. The leap in maturity now hinges on the ability to integrate strategy, technology, data, channels, commercial offerings and measurement into a coherent model capable of creating value for retailers, brands and consumers.’
