Google has announced a major step into the retail media space by partnering with Criteo, a connected commerce platform that works with more than 200 global retailers. 

The collaboration is focused on onsite advertising – sponsored products and search ads that appear directly on a retailer’s owned media assets, such as their website.

Onsite advertising has long been the foundation of retail media, even as the segment diversifies into offsite and in-store channels. 

By linking Criteo’s network with Google’s Search Ads 360, retailers will be able to generate more demand while drawing in a broader base of advertisers eager to experiment with retail media.

Expanding Beyond Consumer Packaged Goods

Traditionally, retail media spend has been dominated by consumer packaged goods (CPG) brands. However, as networks seek growth, there is rising interest in attracting nonendemic advertisers from industries beyond CPG. 

This new pact could accelerate that shift, opening the door for more brands to take advantage of the channel.

Google’s Position in the Ad Market

As the world’s largest digital advertising platform, Google pulled in $54.2 billion from search in the second quarter alone. Yet despite its dominance in search, Google has not been a leading player in retail media – a segment that has quickly become one of advertising’s fastest-growing areas. 

Partnering with Criteo signals a bid to change that. The companies described this move as the “first phase” of a broader collaboration, suggesting more developments ahead.

Taking on Amazon’s Dominance

Much of the retail media conversation has been dominated by Amazon, which has built an ad business powerful enough to stand in its own category. 

The e-commerce giant earned about $15.7 billion from advertising in Q2, with its demand-side platform gaining traction among brands. Google’s new partnership with Criteo appears to be an effort to counterbalance Amazon’s grip on the sector, offering retailers and advertisers a stronger alternative.

A Growing Market Opportunity

According to forecasts, U.S. retail media ad spend is expected to climb 20% this year, reaching $62.35 billion. Although growth is slowing compared to the early boom years, the channel is projected to account for around one-fifth of total digital ad spend by 2027. 

Google and Criteo are positioning their partnership as a way to give retailers more tools to capture their share of that growing market, while offering advertisers improved targeting and measurement capabilities.

Industry Reaction

Criteo’s president of retail media welcomed the alliance, calling Google one of their largest retail media partners. 

They noted that the collaboration would bring scaled brand advertising to retailers across Criteo’s platform. By connecting more brands to their global network and encouraging deeper investment from existing partners, the company aims to help retailers grow their media programmes and increase the value of their ad inventory. 

Advertisers, in turn, will gain access to high-intent shoppers across a wide network of retail partners.

Conclusion

Google’s partnership with Criteo marks a pivotal moment in the evolving retail media landscape. By bringing together Google’s vast search capabilities with Criteo’s extensive retail network, the deal positions both companies to challenge Amazon’s dominance and unlock new opportunities for retailers and advertisers alike. 

As retail media spending continues to expand, this collaboration could redefine how brands reach consumers and how retailers monetise their platforms in the years ahead.