Google partners with Criteo to expand retail media to increase advertising opportunities, grow brand reach, and strengthen the media and entertainment ecosystem.

Google has announced a huge deal with Criteo, a connected commerce platform, to boost its presence in retail media and entertainment. The partnership allows retailers to take advantage of Google Search Ads 360, which opens up room for ads for advertisers but strengthens onsite media assets, such as sponsored product and search ads.

Retail media has become a major driver in media and entertainment, with spending projected to increase 20% in the U.S. this year, up to $62.35 billion. Google, the world's largest digital ad platform, hauled in $54.2 billion from search in Q2 but has been surpassed by rivals such as Amazon in retail media hegemony. This collaboration with Criteo is expected to close the gap and give more confidence to advertisers about measurement tools.

Already a heavyweight in the realm of digital media and entertainment, Amazon's Q2 ad revenues clocked in at $15.7 billion, highlighting how fierce the competition is in a budding sector. The Google-Criteo alliance represents the initial stage of a deeper collaboration aimed at leveling the playing field and enhancing retailers' advertising capabilities.

Sherry Smith, president of retail media at Criteo, emphasized the deal's strategic importance due to the connection it would provide to brands with a large retail network, as well as the benefit to retailers in fostering the growth of their media programs. With retail media now a key component in digital ad strategies, this collaboration marks an evolutionary moment for advertisers and the larger media and entertainment ecosystem.