Ever heard about Criteo? No? Maybe the reason for that is because it is mainly involved in B to B deals. However the expertise of this company is very present in your everyday life and you help the developing their product almost every time you go on the internet. But before going into details lets quickly go through its overview; Criteo is a French company that has been founded by three engineers in 2005. Today it is listed on the NASDAQ and made 444M€ revenues in 2013, it has more than 700 employees and more than 4000 collaborators. It operates in more than 37 different countries and has offices in 15 different countries.
What made the success of the company at its beginning is the algorithm they developed; this algorithm is able to track consumers’ habits on the Internet. So, what is the difference with any other matchmaker? It is different in the fact that tracking is not the finality of Criteo; indeed, once it has collected enough data concerning your habits, Criteo uses them to make a forecast of your next probable purchase intentions. Then, then based on these forecasts, Criteo is able to tell which add will be more likely to have you click on it and make you buy a product from the company who put the add on that page.
Here is how it works (Gelper S., 2008):
The Website is a supplier for ads spaces that they sell to the matchmaker for a certain period. The company X provides the Ads to the Matchmaker and the, the Matchmaker decides which ad to put on which ad space provided by the website. Then every time a consumer goes on the website and click on an ad, then he is redirected on to the company X’s website. For every click company X pays the Matchmaker, which pays the website. Thus the whole system depends on the clicks of the final consumer. That is why Criteo is very successful, because the product that this company developed allows using optimally the ad spots and thus generates more clicks than its competitor matchmakers.
However, Criteo’s business relies only on the information that it gets from the consumers. The more accurate and numerous the collected data are, the better the forecasts will be and thus the more clicks will be generated. The consumer is passively contributing to supply those data, when surfing on the web.
Gelper, S. (2008). Course about Communicating Value – Online Advertising.
http://www.criteo.com/en. Accessed on wednesday April 23rd 2014
http://www.linkedin.com/job/c-criteo-jobs. Accessed on wednesday April 23rd 2014