Copyright © Emerce 2023

Digital advertising company Criteo saw revenue from online retail media rise 29 percent last year to over two hundred million dollars.

Retailers using this new form of advertising in their stores, bol.com being one of them, saw its revenue contribution increase by 21 percent.

That's according to quarterly and annual figures released by Criteo yesterday.

Retail media is the practice whereby Web stores open up their shelf space to advertisers. Those can display their commercial messages for a fee to an audience with demonstrably high purchase intent anyway. This is worth money to those advertisers because of the higher conversion rate: likelihood that a viewer will become a buyer.

This form of advertising is gaining popularity because it's virgin territory but logical eyeballs for advertisers. It's still so new, little case study has been shared publicly.

Criteo's numbers show that advertisers are embracing retail media. The company as a whole showed a three percent drop in revenue, while the new loot showed 29 percent growth. That two hundred million dollars now accounts for ten percent of total revenue. That came to $1.9 billion for all of 2023. Net profit quintupled to $55 million. The profit margin is at 44 percent.

From the past, Criteo is the kind of advertising company that haunts consumers with ads, via tracking cookies. Strict European privacy laws and strict browser makers forced the company to gamble on a new line of business years ago. That one is now starting to pay off.

© The Content Exchange, source News