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New Criteo tool promises average 20-30% higher publisher revenue

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New Criteo tool promises average 20-30% higher publisher revenue

Ad tech player Criteo has launched Direct Bidder, a new programmatic buying tool, which promises to cut away the daisy chain and connect publishers directly to advertisers, thus increasing efficiency. It directly connects publisher inventory to Criteo base of 15,000 clients globally. This process can lead to nearly 20-40 per cent higher publisher revenue on average, says the company.

Direct Bidder works on the header bidding model which is an advanced programmatic technique where publishers offer their inventory to multiple Demand Side Platforms (DSP) simultaneously in order to increase its value. According to Dushyant Sapre, Regional Director, Global Supply & Business Development for Criteo APAC, the current model followed by publishers and exchanges might not necessarily be ideal.

When asked on the need for a new programmatic tool, he said, “In the last few years, we noticed that there are multiple Supply Side Platforms (SSP) who are now working with publishers. Though this might have worked in the past, we have realised that the initially conceived mechanism may not necessarily be creating a win-win scenario for both advertisers and publishers today.” According to him, in the existing model, advertisers have to compete with each other in auctions which they don’t wish to do.  

Another headache for all publishers is the so called “ad tech tax” or the “technology tax” which refers to the invisible and incremental money that gets snatched at different layers of a typical programmatic system today. Sapre says that typically for every $1 spent on an ad campaign, only about 30-40 per cent reaches the publisher. With the new tool, Criteo says that companies can reduce this wastage and earn higher revenues.

“If advertisers cannot drive performance from their digital campaigns they will start spending less. We wanted to circumvent this and bring up a more efficient solution. Instead of working with multiple middle men, we are now connecting our global pool of 15000 advertisers directly with the publisher. We are trying to create a virtuous cycle where both the advertiser and the publisher have a strong impetus to work together and bring in the best work in terms of performance and consumer experience,” said Sapre.

Currently, around 250 publishers globally have joined the Criteo Direct Bidder as part of the early adopter program. Sapre says that this number will increase “significantly” in the next 12 months.

In India, the company works with publishers such as The Times Group, Dainik Bhaskar, India Today, Jagran Prakashan, Business Standard and more. Sapre informed us that the key verticals for the company in India are retail, travel and classifieds with clients including Shopclues, Ajio, Jabong, Flipkart, Yatra and Makemytrip.

Though he would not divulge information about India’s contribution to Criteo’s global revenues, he said that it is a key geography in Asia Pacific for the company and they are boosting their presence here. The Asia Pacific market contributes 23 per cent to the company’s overall revenues and is their fastest growing market.

Tags Criteo programmatic advertising header bidding Abhinn Shreshtha

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