Criteo S A : Q4 2020 Industry Analyst Update

Criteo Analyst Update 20Q4

Industry Analyst Virtual Event

17th November 2020

#Q4CAU

View the video >https://www.criteo.com/blog/video-a-retail-media-moment-with-kenshoos-nich-weinheimer/

Criteo connects commerce data and media

to change how commerce is done.

Megan Clarken	Todd Parsons	Diarmuid Gill	Geoffroy Martin
Chief Executive Officer	Chief Product Officer	Chief Technology Officer	GM & EVP, Growth Portfolio
Strategy and business	Introducing	Criteo's approach	Retail Media
update+ Wrap-up	Criteo Commerce Media Platform	to identification	update

#Q4CAU

3

Megan Clarken

Chief Executive Officer

Strategy and business update

Marketers allocate more towards digital advertising - because it works*

Brands & retailers need AdTech

• Map a high-fidelity consumer journey to deliver relevant customer experiences and drive customer lifetime value.
• Target and reach consumers at scale recommendations in brand- safe environments on the open internet.

Media owners & retailers increasingly depend on AdTech to monetise their audiences & data

• Data deprecation badly hurts both retailers and media.
• Big retailers depend on AdTech to optimise the yield of their inventory and drive growth.

Marketers need better commerce media

• Marketers heavily rely on walled gardens for advertising.
• But transparency and measurement not always up to brands and retailers standards
• Growing privacy issues around targeting for advertising limit open internet addressability.

Source: digital overtook traditional advertising in 2019, representing 54.1% in 2020, trending towards 62% in 2024 at over half a trillion, eMarketer, Global Digital Ad Spending Update Q2 2020, Ethan Cramer-Flood, 6th Jul 2020,

5https://content-na1.emarketer.com/global-digital-ad-spending-update-q2-2020

Commerce media generates massive tailwinds and TAM

1	E-commerce is	2	Open internet retailers	3	Trade marketing
booming	represent ~40% of	shifts to digital

global ecommerce

• Ecommerce expected to grow from 16% of global sales today
  to 23% in 2023.¹

• COVID has accelerated the use	•	92% of brands say their growth
of the Open Internet for product		depends on retail media advertising.³
search and shopping.
	•	Digital Trade Marketing will exceed

•	Brands expected to accelerate shift	• There is white space for commerce	USD 23B in global spend in 2020,
	with boom in ecommerce.	media on the open Internet.	growing on average 82% each year
			since 2016.²
•	Digital advertising to overtake
	traditional in 2021.

1. Source: Ecommerce share of total global retail sales from 2015 to 2023, June 2019,https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/6 2. Criteo and others.

1. Forrester Consulting. "Consumer Product Brands: It's Time To Take Control Of Your Retail Media Destiny", October 2020.

To power the world's

MARKETERS

with trusted and impactful

advertising

Todd Parsons	Diarmuid Gill
Chief Product Officer	Chief Technology Officer

Product Strategy & roadmap

OUR VISION

To be the world's

leading Commerce

Media Platform

Megan Clarken

CEO, Criteo

The Commerce Media Platform is consumer friendly, open & client outcome focused

Criteo	To power the world's MARKETERS with trusted and impactful advertising
mission

Product	We are stewards of first party data, marketing decisions and ad experiences between
strategy	buyers and sellers across commerce

Product	Trust	Connect	Impact
values	Safer access to the diversity	Scaling efficient	Always make a good
	of the web	growth	impression

Criteo combines unique reach and commerce data assets to enable brands and retailers to optimise sales

Commerce Data

Reach

Retail Media

Insights &	Automated
Measurement	Incrementality

Shopper Graph	Stewardship of 20k
$2B daily online	marketer's 1st party
transactions across 4B	user and
product SKUs in 13	commerce data
languages
	Preferred access to
ID Graph	5,000 premium
2.5B global user	publishers on Open
reach with 250M	Internet
DAU's connected
to non-cookie	100+ ad opportunities
identifiers...and	per user/day
counting

Exclusive opportunities

for brands to advertise on retailers' on-site media

Profitable revenue generation for large retailers

Industry first self- service transparent

Retail Media Platform

Ability to measure user	Maps complete buyer
ad exposure to sales	journey
at Product SKU level
	Personalises product
Commerce Insights to	experience with DCO
merge shopping and
paid media data for	Lookalikes extend reach
planning and	while preserving
activation	performance
	Predictive bidding ups
	win-rateand lowers cost

11

2021: Our technology & products serve the ecosystem

Stewards of consumer data, marketing decisions and ad experiences between buyer and sellers across commerce

Criteo Commerce
Media Platform	The Consumer
Marketing Solutions	Consumer Controls:
& Retail Media	Privacy and transparency
Personalised Experiences

Retailers

Data Controls

Monetisation

Retail Media Platform Commerce Insights

Personalisation

Merchandizing

	Publishers
Direct Integrations	Data Controls
Criteo Direct Bidder
SSP Integrations
Revenue Insights

Commerce focused technology

Commerce insights & identity

Machine learning decisions & predictions

Improved personalized ad experiences

Brands

Data Controls	APIs
Omnichannel outcomes	Management Center
Contextual outcomes
Video / CTV outcomes
Measurement

Agencies
Data Controls	API Partnerships with
Omnichannel outcomes
demand and other
Contextual outcomes
marketing applications
Video / CTV outcomes
Measurement

12

Identification rests on 3 complementary approaches

We have the right combination of assets and network to navigate our customers to post-cookie marketing

Addressable	Audience	Contextual
advertising	advertising	advertising
Expand permission data	Industry group* leadership	Machine-learning at the
(1P Network)	on optimised and	intersection of contextual
Improve Open Internet	measurable advertising	and commerce
interoperability (UID2.0)
Privacy-by-design	Interest groups/cohorts	Content/contextual
signals validated by
user-level signals	validated by 1P truth set
1P truth set

"Identity-light"commerce activations for superior customer acquisition and remarketing - today and tomorrow

• Evolved addressable buying journeys
• Optimisation without universal identity
• Audience-firstMeasurement Solutions

13	* W3C, Prebid, Rearc

Commerce Media Platform meets the needs of marketers, brands and retailers in the evolving commerce landscape

Marketer Needs

• Grow their business though smart marketing
• Understand their consumers and places to advertise on the entire path to purchase
• Measure lifetime value of every customer
• Execute all commerce marketing through a single platform

Commerce Media Platform Products

Targeted Reach

• Contextual Outcomes
• Video & CTV Outcomes
• Omnichannel Outcomes

Bridge to performance

• Measurement

Addressability (now and post cookie)

• 1st Party Media Network (1:1)
• • Buyer Index
  • API Program

Impact

Customer

Acquisition

Automated

Incrementality

Customer

Retention/Upsell

14

Roadmap 2021 -and beyond

Criteo Commerce

Media Platform

Analytics & Insights

Global leader in retargeting

Display

Retargeting

Media arbitrage business model

2005 - 2016

Leading performance-based

advertising Platform

Display
Video/CTV/Native	NEW
Retail Media +60% YTD
Retargeting	+50% YTD
Audience Advertising
Omnichannel	+120% YTD

Share of media spend

2017 - 2020

Display	focused-Privacy	NetworkMedia1P
Video/CTV/Native
Social/Search
Retail Media
Retail Media Extension
Retargeting
Audience Advertising
Omnichannel, Contextual,
Interest audiences

Platform

2021 onwards

15

Detailed roadmap 2021 -and beyond

Criteo Commerce

Media Platform

Analytics & insights

Display, Retailer On-Site

Video/CTV/Native

Social/search

Retail Media

Retail Media Extension

Retargeting

Audience Advertising

Omnichannel, contextual,

interest audiences

Platform

Privacy-focused 1P Media Network

Marketing APIs to address every buyer journey

• Audience: Insights and Planning
• Ads: Bidding, Dynamic Creative, Optimization
• Measurement: Events and Incrementality

Supply/formats to reach and engage each buyer

• Video and CTV outcomes
• Social outcomes
• Search outcomes

Retailer reach and monetization

• Audience extension
• Media + store experiences
• In-storemonetization

"Identity-light" audience targeting

• Privacy-by-designaddressability
• Interest group targeting
• Contextual for Commerce

First-Party Media Network

• 1P audience Data: Onboarding, Data Clean Room and CDP integrations
• 1P commerce data: Catalog, Transaction, Buyer behavior
• 1p Syndication: Deal ID, OSS ID, Proprietary ID

Powered by:

Commerce Buyer Index

• Buyer Journey by product, transaction, content or media
• Identity truth sets

Secured by:

Privacy Mesh

• Consumer/partner data rights management
• Across sources, destinations & marketing use cases

2021 onwards

3-year vision: move to open Commerce Media Platform

16

Geoffroy Martin

GM and EVP, Growth Portfolio

Retail Media update

What is Retail Media?

Brand-sponsored ads on retailer websites and apps.

Retail media provides new revenue streams for retailers while delivering

targeted, sales-accountable advertising for brands.

18

Why retail media: a massive USD 20B-25B market opportunity*

Multiple factors driving Retail Media growth

• Rapid rise of ecommerce and diversification of online shopping behavior
• Shift of trade spend from physical retail to digital
• Desire for advertising that is measurable against product sales and targetable without 3rd party cookies

19	* eMarketer, TED, Amazon financial statements; Figures exclude Amazon and China

Retail Media Platform is here!

20

What do clients get from Retail Media Platform?

Retailers:

Leading platform to manage their entire retail

media business

• One platform for all ad formats and demand sources reduces operational and tech management complexity
• Flexible campaign management - easier to create, manage, and optimize complex campaigns
• Support for sponsored product and display ad formats, audience targeting, and CPM/CPC pricing models
• Full control of media pricing and yield - retailers control their own floor prices and rate cards, regardless of demand source
• Incremental demand from brand and agency platform users, plus 3rd party demand sources available through API

Brands & Agencies:

Enterprise-grade tech for managing retail media

investments

• Complete flexibility, transparency, and control across major retailers
• Enterprise-gradeself-servicecapabilities, with full transparency and robust account management & user permissions
• Accountability for every ad dollar to SKU-levelproduct sales
• Campaign management and reporting APIs to integrate with existing analytics tools and buying platforms

21

Criteo is uniquely positioned as the leading platform for Retail Media

Powers the largest open, multi-retailer ecosystem - not just retailer walled gardens

Supports every major retail media ad format - including sponsored products, native display, IAB standard display, and custom ad units

Best-in-class shopper experience with AI-powered relevancy controls

Trusted platform for broadest network of category-leading retailers: Support leading retailers like Target, Best Buy, Costco, Macy's, Asda, and Carrefour

Agency-readyself-service capabilities and APIs to connect to 3rd party platforms

Proven tech scale and global retail media experience

22

Strong market traction for Retail Media Platform

Brands & Agencies

• 50+ brands already live and growing
• Holding company-level technology agreements with agencies - a first for Criteo
• Unique agency partnerships: partnership with Merkle to support both their agency and retailer consulting businesses

Retailers

• Target live on Retail Media Platform and more major US retailers transitioning soon
• EMEA rollout to accelerate in Q1 2021 - including major European grocer consolidating its Retail Media business onto Retail Media Platform

"Criteo's new Retail Media Platform is hugely exciting as it reduces the silos that exist across the industry with regards to inventory, allowing brands to target consumers based on

rich behavioural insights close to the point of conversion in a way that hasn't really

been possible before.''

-Stuart Johnson, Omnichannel Commerce Director, Publicis

23

Helping a major big box retailer evolve its Retail Media offering

Yesterday	Today	Tomorrow

•	Managed service	•	Self-service and managed	• All ad formats delivered via one platform
	Sponsored		service options for brands	(Criteo)
	Products offering	• Demand from 3rd party	• Offline purchase data available for
•	Separate		ad platforms	targeting and measurement
	platforms for
	Sponsored	•	4x revenue growth	• Offsite advertising with 1st party targeting
	Products (Criteo),			and measurement available via same
	display (Google),			platform
	and offsite
	advertising

24

Where we go from here: 2021 Retail Media roadmap

Advanced display capabilitiescapabilities& retailer&

retailercontrcontrolsls

• New targeting capabilities, including CRM and in-store data integrations
• New display ad formats and support for 3rd party verification
• New retailer controls and ''deal'' functionality to customize priority and price by brand, campaign, and demand source

eCommerce eCommerce insights insights

• Advanced insights that combine media metrics with organic commerce data - unique outside of Amazon
• New metrics like true share of voice, share of category, and incrementality measurement
• Understand how product content and ads work together to drive conversion
• New budget planning and allocation tools

Offsite

Offsite advertising advertising

• Extend campaigns across the open web
• Target campaigns using 1st party retailer data
• Measure campaign using SKU-level sales data

Geographic

expansion

• Launch in APAC: Australia, Japan, South Korea
• Expansion into new markets in Europe and Americas

25

Megan Clarken

Chief Executive Officer

Wrap-up

How Criteo works with clients

SEAT used Criteo's exclusive intent data to build an audience of 'Discount Lovers' for an upper-funnel acquisition campaign

+38% leads for dealerships

Support the launch of a	Italian agency
new consumer	Webranking wanted
electronics product	to build out their
	customer journey and
Leverage Criteo	maximize every
consumer intent to target	consumer touchpoint
users which are right in
the buying process of	+80% post-click
new goods to drive them	revenues
to ecommerce website

German retailer SportCheck used monetised its website to drive growth outside of product sales

14 Brands live on Criteo Retail Media generating between 1,000% to 6,00% ROAS

27

Retail clients leveraging the synergies between retail media and marketing solutions

Criteo Marketing Solutions helped La Redoute prioritise families along the full funnel, to drive loyalty, engage new users with similar profiles, all with a very competitive ROI.

La Redoute also relies on Criteo Retail Media's solutions to activate premium and native Retail Media ads for big and small events of everyday life.

myToys Group is partnering with Criteo Retail Media.

Criteo is supporting myToys:

• to monetize the inventory in their online shop (mytoys.de) and
• to win brand budgets for onsite (native & display) as well as offsite campaigns.

myToys thus benefits from additional revenue streams and an increase in brand engagement.

28

Criteo is in a good position for 2021, tracking on our four strategic pillars and ready to grow over time

1	2	3
Strengthen	Expand	Explore strategic
the core	product portfolio	game changers
ü Overachieved	ü Strengthened product	ü Expanded ecommerce
expectations despite	roadmap to revive	exposure through Retail
Covid_19	growth and address	Media
ü Introducing a strong C-	identity challenges
	ü Invest in compelling
level set to	ü Launched new Retail	opportunities for growth
accompany Criteo's	Media Platform in NA	to address huge
transformation	and EMEA	commerce media
		opportunity

4

Drive tech &

operational excellence

• Invest in DSP, insights and identity
• Strong balance sheet and reinvestment strategy to further transform our business

29 * Source: Criteo

Q&A panel

Megan Clarken

Todd Parsons

Diarmuid Gill

Geoffroy Martin

30

Further questions? Just contact Criteo Influencer Relations

Ludovic Leforestier	Megan Stevens
Director Influencer	Analyst Relations
Relations	Manager
[phone]	[phone]

31

#Q4CAU

Appendices

Global reach with 20,000+ advertisers across 100+ countries

		Amsterdam	Stockholm
	Toronto		2011	2010
	2015	London		Grenoble
Ann Arbor		Moscow
2008		2014
	2016
Chicago	Paris		Munich	2014		Seoul
Boston
2012	2005		2010		Beijing	2010
San Francisco	2012			Milan	Istanbul
Madrid		2013
2014	New York		2012	2015	Tokyo
	2014
	2011	Barcelona			2011
	Miami		2014	Dubai		Osaka
Los Angeles	2015			2015		2014
2015					Gurgaon
				2016
					Singapore
Campaigns in 100+ countries					2013
28 offices in 19 countries		São Paulo					Sydney
80+ nationalities		2011					2011

33

Criteo is in a good position for 2021, tracking on our four strategic pillars and ready to grow over time

1	2	3
Strengthen	Expand	Explore strategic
the core	product portfolio	game changers

4

Drive tech &

operational excellence

• Overachieved expectations despite Covid_19
• Introducing multi-yearMSA contracts with large clients
• Introducing a strong C-level set to accompany Criteo's transformation

• New solutions +43% YoY, +53% YTD to 19% of total
• Launched new Retail Media Platform in May in NA and October in EMEA: ~+60% YoY, +62%
  YTD

• Expanded ecommerce exposure through Retail Media
• Launched CTV campaigns
• Criteo/The Trade Desk partnership on UDID2.0

• Invest in DSP, insights and identity
• Ahead of cost control plan
• We have financial strength to support growth investments

34 * Source: Criteo

A growing ecosystem of partner integrations

Audiences

Measurement

Offline

Ecommerce Platforms

Tag Management

Supply Quality

Feed Management

Dynamic Creative Optimization

35

We are the world's leader in supply access

Ensure complete access to every eligible user and adapt to a changing landscape and shifting user behavior

$5.1B	1.2M
Paid to publishers	Bids made per
in the last 5 years	second	Global supply
		156 team
		members
3.8B	$1.2B yield	across 20 offices
Displays per day	Publisher spend for
	2019

36

Criteo has direct partnerships with over 5,000 publishers globally

37

Benefits of Direct Publisher Partnerships

Better pricing

• Removing SSP fees to get you more value from your budget
• Preferred deals drove 5% lower CPMs in Q4 2019 vs. open auction

Better depth of supply

• Unique inventory sources e.g. AMP, Adblock
• Exclusive placements e.g. Native, High impact

Preferred access

• ~40% of our Americas supply has advantaged access
• Criteo Direct Bidder drives 30% higher win rate on average vs. open auction

Our future online

identification solutions will require/benefit from a direct relationship with publishers. We believe that having direct connections to publishers will be an asset in the future.

38

Commerce Media Platform addresses marketer/retailer needs

Brands and retailers want to…

1. Understand every buyer journey
2. Grow business through smart marketing
3. Execute all digital marketing through single partner
4. Measure lifetime value of every customer

Criteo Commerce Media Platform brings

• Deep commerce insights through data and analytics
• State-of-the-artuser matching technology
• Commerce-friendlyads, retailer on-site media
• Single platform for targeting and retail media
• Large, privacy-focused1st-partymedia network
• Preferred access to over 5,000 media properties
• Exclusive access to large retailers onsite media
• Video and CTV campaigns enablement
• Linking offline and online outcomes
• Measurement along entire buyer journey

39

One platform for the open retail media ecosystem

Retailers & saleshouses	Brands & agencies
Manage business rules governing	Create and manage campaigns
access to inventory and data	via self-service UI

API partners

Integrate with other buying

platforms and reporting

systems

40

How Retail Media Platform is different

	Robust APIs support unique API
One platform to buy and sell both	Platform Partners program and
sponsored products and display	integrate with 3rd party campaign
	management and reporting tools

Powers a transparent, open
ecosystem - not individual walled	Proven scale and
gardens - to maximize revenue for	global footprint
retailers and flexibility for brands

41

Retail Media Platform helps retailers realise their retail media potential

Make it easier to buy

and maximise

demand

• Manage their direct sold sponsored products campaigns with one powerful platform
• Enable demand from Criteo plus 3rd party API partners

Support more retail

media use cases across the funnel

• Support upper-funnel goals through IAB standard display ad formats and unique, native Commerce Display formats
• Extend campaigns offsite leveraging 1st party shopper data and sales measurement

Gain share of wallet and

preserve the shopper

experience

• Help brands plan with advanced insights beyond ROAS such as share of voice and share of category
• Ensure a great shopper experience through granular relevancy controls

42

Thank you