• by Laurie Sullivan  @lauriesullivan, July 11, 2024

Microsoft Advertising committed more of its resources to retail on Thursday with a partnership that puts it deeply in the media.

The advertising division expands its collaboration with Criteo, an established leader in retail media, to "chart a new path."

Microsoft’s generative AI (GAI) technologies will also become available through its advertising platforms.

Innovations include the AI-powered Retail Media Creative Studio -- intended to make it easier for advertisers to create and optimize campaigns -- which will become available to Criteo clients in the future. A specific timeline was not provided.

Criteo now has a stronghold on retail media following its acquisition of HookLogic, which closed on November 9, 2016. Since this acquisition, the company has been building its business supporting companies including Walmart and Target.

Brian Gleason, CRO at Criteo, called the relationship with Microsoft a “massive unlock” -- meaning it gives advertisers much more ad supply on retail websites.

“For the 225 retailers Criteo represents, it’s a significant demand source that does not have access into retail media,” he said. “It creates the pipes.”

The two companies have had a longstanding relationship, but now, Microsoft looking to Criteo as a preferred partner is a significant change, and also announced its intent to transition retail company clients that currently execute onsite media via their platform to Criteo’s Commerce Media Platform.

Ironically, Criteo conducted a retail media study and released the findings in May. The study found that 70% of brands globally believe forming new partnerships will be more important for their objectives in 2024, and 77% have increased collaborations with partners to expand their reach and capabilities.

Retail media has become a strong tool to acquire new customers. Criteo data shows that for Apparel & Accessories, Arts & Entertainment, and Health & Beauty, some three in five people who clicked and purchased from a retail media campaign are new shoppers to the brand.

Brands in the U.S. that ran sponsored product ads drove 428% of incremental return on investment, and more than 49% of revenue per user.

In May, Criteo released a report estimating retail brands that ran sponsored product ads saw a more than 428% incremental return on investment, and 70% of brands globally said that forming new partnerships will be more important for their objectives in 2024 

The report surveyed leaders from more than 1,000 brands, agencies, retailers and publishers to uncover opportunities within the commerce ecosystem, and analyzed Criteo data from thousands of brand campaigns to understand retail media’s full-funnel impact.