Retail media evolves to understand when not to speak

Retail media is shifting its focus from simply delivering the right message at the right time and place to understanding when not to deliver a message at all. This marks a new phase in the evolution of advertising strategies, emphasizing relevance over frequency.

Growth of retail media in Europe

Retail media investments in Europe have grown by 16.7% in 2025, reaching 13.3 billion euros. This amount now exceeds 10% of European digital advertising investments, according to IAB Europe, highlighting the sector’s increasing importance.

Integration of digital in physical stores

Physical stores are being transformed with digital tools like screens, display devices, CRM systems, and audio. These technologies make in-store advertising addressable and measurable, blending digital efficiency with the physical shopping experience.

Emerging channels for growth

While digital in-store screens are still limited, audio, along with CTV (connected TV) and OOH (out-of-home) advertising, is seen as an emerging channel. These formats offer new opportunities for contextual advertising, aligning with the growing preference for less intrusive, more relevant ads.

Consumer preference for relevant ads

A 2025 IAB Europe study by Kantar found that 80% of European consumers prefer fewer but more relevant advertisements over mass-distributed generic ads. This preference underscores the need for new media to be context-aware and selective in their messaging.

Ambient media as a new concept

Ambient media, such as in-store audio, is gaining recognition as a medium that blends into the environment rather than standing out. It contributes to the brand experience and customer journey by creating a favorable atmosphere without overwhelming the shopper.

Intelligence in ambient media

Intelligent ambient media does not need to know who is in front of it, but rather where it is and what is happening. It understands the context, such as time, weather, foot traffic, and promotions, to decide when and what to communicate.

Context-based intelligence

This form of intelligence is context-based, focusing on what is happening in the environment rather than on individual identities. It responds to evolving consumer expectations, especially regarding the use of personal data for advertising.

Privacy and data concerns

In 2025, 58.8% of EU internet users have chosen not to allow the use of their personal data for advertising, according to Eurostat. This trend highlights the growing importance of respecting privacy and minimizing data collection in advertising practices.

Future of retail media

The next step in retail media may not only involve making each contact more targeted but also knowing when not to intervene. This shift reflects a broader movement toward more thoughtful, context-sensitive advertising. For further information, attend Tech for Retail 2026 on November 30 and December 1 at Paris Expo, Porte de Versailles.