By Ronan Shields and Seb Joseph • August 30, 2024 •
One of ad tech’s most celebrated CEOs, Megan Clarken of Criteo, is planning her exit within the next 12 months. And just like that, the internet’s armchair analysts are off to the races with their hot takes and wild theories.
The rumor that’s really caught fire? Clarken is stepping aside to clear the way for a big, game-changing acquisition — one of the last few pieces on ad tech’s chessboard.
As wild as that might sound, it’s not completely out of the blue. Criteo has been in talks with potential buyers multiple times and even put itself on the market as recently as last year. Whether a deal materializes before Clarken’s exit is anyone’s guess, but if it does, here are a few rumored contenders to keep an eye on.
The Trade Desk
The largest independent ad tech vendor isn’t exactly known for its shopping sprees — its first and only acquisition dates back to 2017, with the purchase of Adbrain for a undisclosed sum. Usually, it prefers building its own path to growth rather than buying it. However, Criteo could be a rare opportunity that might shift this stance.
Consider this: The Trade Desk has been waving the CTV banner as its growth champion. Yet, as the market evolves, that story might lose its luster if CTV hits a speed bump. Enter retail media — a rapidly growing sector with a promising future. Criteo’s strong foothold in retail media could be just the strategic boost The Trade Desk needs to pivot and seize this new wave of growth.
Microsoft
Unlike The Trade Desk, Microsoft isn’t shy about using its checkbook to deepen its advertising footprint. Just look at its recent history: it scooped up ad tech vendor Xandr two years ago and snapped up PromoteIQ, a retail ad tech company, back in 2019. So, if Criteo became Microsoft’s latest conquest, no one would be shocked. After all, Microsoft has been pretty clear about wanting to grow its ads business beyond just search — eyeing commerce, streaming, gaming, and B2B ads as prime targets.
But here’s the twist: Microsoft’s approach to acquisitions seems to be changing. Recently, it’s been leaning more toward bolstering its own proprietary tech rather than snatching up third-party ad platforms. The two recently launched a strategic partnership that would see Criteo become Microsoft’s “preferred on-site media partner,” but writing a check for the French company would require billions of dollars to be exchanged.
Walmart
Walmart could be a smart next move for Criteo. The retail titan has been fiercely pursuing its advertising goals, even going so far as to acquire TV manufacturer Vizio earlier this year. So, if Criteo were the next target, it wouldn’t be a shock. With Criteo in the mix, Walmart could build a more integrated ecosystem, connecting its e-commerce platform, Vizio’s CTV capabilities, and in-store data for more impactful advertising. Plus, Criteo’s strong foothold in markets outside the U.S. could be the key to Walmart scaling its ad business globally.
Publicis Groupe
Publicis Groupe might just circle back to Criteo. The holding group reportedly almost acquired the business a decade ago. Who’s to say it won’t take another shot now? Sure, Criteo has evolved since 2014, but that could actually make it an even better fit for Publicis. Over the past few years, Publicis has been snapping up commerce and retail media firms like CitrusAd and Profitero, and it’s been going all-in on creating an end-to-end retail media offering. With Criteo now a big player in the retail media space, Publicis might see it as a prime opportunity to boost its revenues in this area — without the hassle of navigating agency budgets that Criteo has been dealing with.
GroupM
France-based Publicis Groupe is the leader of the pack when it comes to the current state of agency holding companies. Although, the fortunes of its U.K.-headquartered rival WPP is something of a mirror image, and this is the thread many armchair analysts are tugging to fuel their speculation that it may make a bet of Criteo to revive its fortunes.
The theory, in-part, rests on the relationships of key executives, and that can subsequently be applied to one certainty, i.e., WPP, that it needs to turn around its fortunes; and retail media could prove a means of doing so.
First of all, let’s look at the personalities at play. WPP’s GroupM has a new chief executive at the helm in the guise of Brian Lesser’s return, and he is no stranger to writing big checks when it comes to encouraging the transformation of parent companies. Does anyone remember how AppNexus became Xandr?
Also, given how Criteo’s board is on the hunt for someone to fill its hot-seat, they may pan across the existing C-suite, and consider their current chief revenue officer Brian Gleason — himself, a former high-flying executive within the GroupM fold.
If this scenario were to play out, would the two former “sons of Xaxis” — more seasoned readers will get that reference — put the old band back together again?
Who knows, but we all know that personal relationships count for a lot, and retail media has figured prominently in WPP’s marcomms — just look at its recent partnership with Pacvue.
And while Criteo would amount to a significant sum — its market capitalization was north of $2.5 billion the same week as Clarken announced her pending exit — its on- and off-site retail media capabilities would represent a real statement of intent.
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