Criteo Collaborates with Microsoft Advertising to Drive Retail Media Growth

Rhea-AI Summary

Criteo (Nasdaq: CRTO) has announced a strategic collaboration with Microsoft Advertising, aimed at addressing fragmentation in the retail media landscape. This partnership will integrate Microsoft Advertising's extensive demand into Criteo's network of 225 retailers and make Criteo the preferred onsite media partner for Microsoft’s retailer clients. Retail media, a rapidly growing sector, is projected to represent over $150 billion in global ad spend by 2026. The collaboration is expected to boost revenue for Criteo's retail media network partners and enhance the performance of Microsoft Advertising's 500,000+ active advertisers across 187 global markets. Additionally, the partnership will explore leveraging Microsoft’s generative AI capabilities, including AI-powered creative tools. The integration and preferred onsite collaboration are slated for rollout in the second half of 2024.

Positive

• Strategic collaboration with Microsoft Advertising to unify the retail media ecosystem.
• Expected increase in revenue for Criteo's retail media network partners.
• Access to Microsoft Advertising's 500,000+ active advertisers operating in 187 global markets.
• Potential use of Microsoft’s generative AI technology for ad creative optimization.

Negative

• None.

Market Research Analyst

The collaboration between Criteo and Microsoft Advertising represents a significant move in the retail media landscape. Retail media is a booming sector in advertising, expected to reach $150 billion by 2026. This partnership aims to reduce market fragmentation, a challenge noted by 93% of marketers. By leveraging Microsoft Advertising’s demand and Criteo’s extensive retailer network, the deal could simplify and streamline the purchasing process for advertisers. This could potentially drive increased advertiser spend on the platform, thus benefiting Criteo’s revenue stream.

However, the success of this collaboration hinges on effective integration and the ability to deliver measurable performance improvements for advertisers. While the integration promises expanded reach and simplified buying processes, execution risks and market dynamics should be monitored.

Overall, this development is promising for both companies’ positions in retail media, but investors should watch how effectively the integration unfolds and if it meets the projected performance metrics.

Financial Analyst

Financially, this collaboration has the potential to be beneficial for Criteo. Integrating Microsoft Advertising's demand into Criteo's network could drive significant incremental revenue, as it addresses a key pain point in retail media—fragmentation. This could lead to increased ad spend and better monetization rates for Criteo, improving its top-line performance.

Moreover, the strategic partnership with a tech giant like Microsoft reinforces Criteo’s market position and could attract more advertisers seeking a unified platform for their retail media needs. However, investors should remain cautious of integration costs and the timeline for realizing financial benefits, which are expected to roll out in the second half of 2024. Long-term revenue growth will depend on the partnership's ability to deliver sustained performance improvements for advertisers.

Tech Expert

The technology aspect of this collaboration is particularly intriguing. Criteo’s potential integration with Microsoft Advertising’s AI-driven innovations like the Retail Media Creative Studio could significantly enhance the ad creation and optimization processes. AI capabilities can streamline ad production and improve campaign performance, making the platform more attractive to advertisers.

Furthermore, AI can provide deeper insights and analytics, helping retailers and advertisers make more data-driven decisions. However, the real impact will depend on how seamlessly these technologies can be integrated and scaled across Criteo’s network. Effective deployment of AI tools could set a new standard in retail media, providing a competitive edge for both companies.

Expanded relationship intended to help address fragmentation in the fast-growing retail media landscape

NEW YORK, July 11, 2024 /PRNewswire/ -- Criteo (Nasdaq: CRTO), the commerce media company today announced a strategic collaboration with Microsoft Advertising to bring Microsoft Advertising's extensive demand to Criteo's global network of 225 retailers. Microsoft Advertising also intends to work with Criteo as its preferred onsite media partner, extending Criteo's monetization technology to Microsoft Advertising's retailer clients, creating an even more unified retail media ecosystem.

Retail media is one of the fastest-growing sectors in advertising and is expected to represent over $150 billion in global ad spend by 2026, according to GroupM. But 93% of marketers worldwide cite market fragmentation as a significant challenge. Criteo and Microsoft Advertising intend to help move the industry forward by tapping into Criteo's vast network of retailers and developing a more unified buying experience for global advertisers.

This collaboration would expand the companies' longstanding relationship and is expected to bring new revenue to Criteo's retail media network partners. In turn, it would empower Microsoft Advertising's 500,000+ active advertiser clients that operate across 187 global markets to achieve stronger, measurable performance for their campaigns within a singular, unified platform.

"We're thrilled to expand our relationship with Microsoft Advertising to make it easier for brands to buy retail media and for retailers to expand demand into their media solutions," said Brian Gleason, Chief Revenue Officer at Criteo. "We look forward to continuing to evolve our collaboration and help drive growth across retail media."

Criteo is also exploring the potential to tap into Microsoft Advertising's leadership in generative AI and innovations, such as its AI-powered Retail Media Creative Studio, which makes it easier for advertisers to create and optimize their ad creatives at scale with the power of generative AI.

"Together, Microsoft Advertising and Criteo can chart a new path forward for retail media, empowering the entire ecosystem with scale, simplicity, and innovation," said Lynne Kjolso, Vice President of Global Partnerships and Retail Media at Microsoft Advertising. "We're pleased to further our integration with Criteo, a leader in retail media and performance advertising, and look forward to exploring future opportunities."

The demand integration and preferred onsite collaboration are expected to roll out in the second half of 2024.

For more information on Criteo's retail media solutions and its retail media ecosystem, click here.

About Criteo
Criteo (NASDAQ: CRTO) is the global commerce media company that enables marketers and media owners to drive better commerce outcomes. Its industry leading Commerce Media Platform connects thousands of marketers and media owners to deliver richer consumer experiences from product discovery to purchase. By powering trusted and impactful advertising, Criteo supports an open internet that encourages discovery, innovation, and choice. For more information, please visit www.criteo.com.

Contacts

Criteo Public Relations
Jessica Meyers, j.meyers@criteo.com 

Criteo Investor Relations
Melanie Dambre, m.dambre@criteo.com

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including an anticipated agreement with Microsoft, and our expectations regarding our market opportunity and future growth prospects and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, uncertainty regarding our ability to access a consistent supply of internet display advertising inventory and expand access to such inventory, including without limitation uncertainty regarding the timing and scope of proposed changes to and enhancements of the Chrome browser announced by Google, investments in new business opportunities and the timing of these investments, whether the projected benefits of acquisitions materialize as expected, uncertainty regarding international growth and expansion (including related to changes in a specific country's or region's political or economic conditions), the impact of competition, uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith, the impact of consumer resistance to the collection and sharing of data, our ability to access data through third parties, failure to enhance our brand cost-effectively, recent growth rates not being indicative of future growth, our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in the Company's SEC filings and reports, including the Company's Annual Report on Form 10-K filed with the SEC on February 23, 2024, and in subsequent Quarterly Reports on Form 10-Q as well as future filings and reports by the Company. Importantly, at this time, macro-economic conditions including inflation and rising interest rates in the U.S. have impacted Criteo's business, financial condition, cash flow and results of operations.

Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, changes in expectations or otherwise.

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SOURCE Criteo

FAQ

What is the strategic collaboration between Criteo and Microsoft Advertising about?

The collaboration aims to address the fragmentation in the retail media landscape by integrating Microsoft Advertising's demand into Criteo's network of 225 retailers.

How will the collaboration between Criteo and Microsoft Advertising impact CRTO?

The partnership is expected to bring new revenue to Criteo's retail media network partners and empower Microsoft Advertising's 500,000+ active advertisers, which could positively impact CRTO's stock.

When will the Criteo and Microsoft Advertising collaboration roll out?

The integration and preferred onsite collaboration are expected to roll out in the second half of 2024.

What is the projected global ad spend for retail media by 2026?

Retail media is expected to represent over $150 billion in global ad spend by 2026.

How many advertisers does Microsoft Advertising have?

Microsoft Advertising has over 500,000 active advertisers operating across 187 global markets.

What is the significance of the AI technology in the Criteo and Microsoft Advertising partnership?

The partnership will explore leveraging Microsoft’s generative AI capabilities, such as the AI-powered Retail Media Creative Studio, to optimize ad creatives at scale.