The retail media industry in Germany is undergoing a major transformation. With retail media now one of the fastest-growing channels in Europe, brands and agencies are rethinking how to connect with German shoppers. The country’s strong eCommerce adoption, competitive advertising landscape, and influence as one of the biggest German retail markets make it a key battleground for both global and local brands.
As Germany strengthens its position at the center of Europe’s digital economy, 2025 will bring both new opportunities and challenges. From rising CPCs and media fragmentation to the growing role of discovery commerce, understanding the retail media market in Germany is critical for brands that want to scale efficiently and compete effectively.
The Opportunity Ahead
Germany stands as one of Europe’s most advanced and competitive retail media markets. With a mature eCommerce infrastructure, deep digital ad investment, and a growing network of sophisticated retail media networks, Germany is setting the pace for how brands activate, optimize, and scale retail media across the region.
Across Europe, digital ad spend reached a record €118.9 billion in 2024, with retail media identified as one of the fastest-growing channels. Germany sits at the center of this shift and for brands ready to move, it’s a prime opportunity to lead in one of Europe’s most impactful and performance-driven retail media markets.
The German market in the European Context
Germany’s retail media landscape reflects broader European trends while maintaining unique market dynamics.
Amazon continues to dominate the local retail media ecosystem, generating €3.62 billion in ad revenue in 2024, up nearly 24% YoY. Meanwhile, the country’s eCommerce revenue is projected to exceed €92.4 billion by the end of 2025, reinforcing Germany’s position as one of Europe’s most lucrative digital markets.
Retail media maturity is increasing as well. According to a recent report, 63% of advertisers now maintain retail media partnerships lasting over a year, and it’s becoming common to work with four to six RMNs at once. This shift demands full-funnel, cross-channel strategies that are data-driven, agile, and localized.
Key Trends in Retail Media Performance Across Europe
1. Sponsored Brands Are Gaining Ground
In Q2 2025, Sponsored Brands delivered higher ROAS than Sponsored Products (€7.35 vs. €7.10), despite having higher CPCs. No longer confined to upper-funnel objectives, these formats are becoming essential for mid- and lower-funnel conversions—especially when paired with effective localized creatives and messaging.
Sponsored Brands have become a bridge between storytelling and performance.
2. Budget Pressure Rises with CPC Costs and Longer Campaign Cycles
Rising CPCs and longer campaign windows are stretching budgets, while inconsistent performance and measurement complexity are making it harder to justify spend. To stay competitive, Brands advertising in Germany need real-time insights to optimize in-flight and protect ROI.
3. Discovery Commerce Is Gaining Momentum
Creator-led commerce is becoming a major performance lever. In July 2025, Amazon saw its highest-ever influencer-driven sales month in Europe, driven in part by TikTok campaigns and elevated commission structures. Discovery commerce is no longer a nice-to-have, it’s becoming a core component of many media strategies for retail in Deutschland.
Challenges Still Holding Brands Back from Growth
Despite growth, brands face several persistent roadblocks in the German retail media space:
- Fragmentation: Brands often work across multiple retail media networks, each with unique formats, reporting structures, and campaign requirements.
- Lack of Standardization: Without centralized data infrastructure, brands struggle to understand true lift, cannibalization, or cross-channel influence.
- Rising costs and wasted spend Higher media prices, tighter retailer margins, and imprecise targeting are making ROI harder to achieve.
Pacvue’s Playbook for Germany in 2025
Navigating Germany’s retail media landscape requires more than just campaign execution—it demands localized strategy, seamless operations, and intelligent automation. At Pacvue, we help brands simplify the complexity of this evolving market by turning data into action and scale into performance.
Here’s how we’re helping brands win in Germany:
- Localized Strategy & Platform Expertise
Pacvue understands the unique dynamics of the German market – from shopper expectations to regulatory requirements. Our platform is built with these nuances in mind, offering tools that help brands optimize product listings, manage end-to-end ad campaigns, and stay compliant, all while delivering measurable results.
- Pacvue AI and Data Insights:
Our rule-based automation engine enables brands to optimize campaigns with precision. Whether it’s dynamic bidding, real-time budget pacing, or proactive alerting, Pacvue adapts to fluctuations in German and EU market conditions so your campaigns can stay efficient and competitive at every step.
- Retail Network Connectivity:
Germany’s retail media ecosystem is increasingly fragmented. Pacvue brings it all together by supporting key platforms (such as Amazon, Criteo, Bol.com etc.) allowing you to activate, manage, and measure campaigns across networks from one unified interface.
The 2025 Outlook
Germany’s retail media market is growing quickly but so is the competition. Brands that want to win in this environment will need to embrace smarter tools, more unified strategies, and a data-first mindset. Automation, adaptability, and measurement clarity will separate the leaders from the laggards.
Pacvue is built for this moment, offering you the tools, integrations, and support to scale smart and grow sustainably.
Ready to build your 2025 retail media strategy in Germany?
Connect with a commerce expert at Pacvue today to learn how we can help your brand thrive in one of Europe’s most dynamic markets.
