Criteo works with e-commerce companies to improve the performance of their advertising online (Photo Credit: Company Logo)
Criteo, a French ad-tech company, saw a 3 per cent fall in its revenue compared to last year as it is still adapting to changes made by large browsers such as Google Chrome. Shares of Criteo had hit a 52-week low last month after Google announced it planned to end support for third-party cookies, which fuel much of the digital advertising ecosystem, in its Chrome browser within two years.
On Tuesday, Criteo said its revenue fell to 653 million US dollars for the fourth quarter, down 3 percent year over year. Its net income also fell 4 percent to 41 million US dollars.
According to CNBC, Criteo works with e-commerce companies to improve the performance of their advertising online. It provides retailers the ability to target consumers with ads that follow them all over the web. However, increasing consumer privacy regulation and Google’s decision to remove third-party cookies from its Chrome browser have cast a cloud on the company's future, according to a report in AdAge.
Criteo expects revenue to fall by as much as 10 percent for the next quarter. Criteo said the fall in revenue was the result of its largest clients shifting budgets away from its platform, perhaps suggesting that sophisticated brands are moving away from cookies in anticipation of their demise in 2022.
"What we saw was softness from our largest client base,” CEO Megan Clarken told Ad Age. According to the report, Criteo is now shifting its attention to growing areas such as connected TV and in-app advertising. Clarken, talking to AdAge, expressed hope that the new business model will attract companies beyond retail, such as those in finance and travel.