Paris and Massy, France –(Business Wire)–Regulatory News:
Publicis Groupe (Paris: PUB):
Carrefour Group [Euronext Paris FR0000120172, CAC 40] and Publicis Group [Euronext Paris FR0000130577, CAC 40] Announced their intention to form a joint venture to address the booming retail media markets in continental Europe and Latin America.
Retail media is the fastest growing channel for media spending, completely changing the traditional media hierarchy. Within the next three years, it is expected to surpass the TV ad spending of U.S. consumer goods companies. In continental Europe, retail media is rapidly gaining traction, with a potential market expected to exceed €5 billion by 2026, according to IAB and internal analysis.
Through this joint venture and as founding partners, Carrefour and Publicis will leverage their respective industry leadership positions, aiming to bring to Europe and Latin America the same scale and connectivity as the US retail media boom
By combining Publicis’ advanced technology, CitrusAd powered by Epsilon, with Carrefour Links’ retail media knowledge and expertise, the new venture will build a comprehensive media player addressing the entire retail media value chain. It will cover technologies for creating inventory and data sharing for merchants, as well as the full commercialization of advertiser media and data solutions directly supported by merchant transactions in continental Europe, Brazil and Argentina.
The joint venture aims to bring together multiple new retailers, build an unparalleled inventory network, and accelerate the growth of retail media in Europe and Latin America. The ultimate goal is for any company with direct customer touchpoints and first-party data to join the platform in order to monetize its assets and work with advertisers to develop more effective marketing strategies and grow their businesses.
Alexandre Bompard, Chairman and CEO of Carrefour Group,statement:”We understood early on that our data had enormous potential for value. We were one of the first retailers to launch retail media. Last year, we accelerated by creating the Carrefour link. Today, we want to go further and go beyond the limitations of our current models. We will form alliances with industry experts Publicis Groupe to change three things: firstly, we will put technology at the heart of our model, secondly, we will move up the value chain by creating retail media solutions Thirdly, we will Conquer new markets in continental Europe and Brazil. Through this alliance, our digital transformation has entered a new dimension, allowing us to enter a new market with tremendous growth. “
Arthur Sadoun, Chairman of the Management Board of Publicis GroupeSay: “Following the digital media revolution of the 2000s and the social media revolution of the 2010s, retail media has once again revolutionized established hierarchies and opened up new opportunities for marketers. So far, the fragmented market in Europe and Latin America Makes it difficult for brands to unlock their full potential. That’s why we’re taking action today. By partnering with Carrefour, the clear leader in this field in Europe and Latin America, we’ll be able to offer our customers an unrivaled customer understanding and direct access to quality inventory that Inventory yields the highest conversion rates and returns – advertisers’ ad spend. This is a major milestone that can help marketers regain control of their customer relationships, accelerate their readiness for a cookie-free world, and deliver successful media strategy.”
The joint venture will be 51 percent owned by Carrefour and 49 percent by Publicis. Operations are expected to begin in the first half of 2023, subject to customary regulatory conditions and regular legal advice.
retail media Leverage retailers’ high-quality relationships with their customers to help marketers run targeted campaigns on retailer premises (onsite or in-store) and leverage retailer data to expand their presence on publishers’ premises. It provides measurements that are directly verified through online and in-store transactions.
New data regulations and the expected end of third-party cookies present real challenges for digital platforms and marketing players to continue to reach customers. In this context, retailers operating large loyalty programs with robust consent databases, as well as their regular touchpoints with online and in-store customers, provide them with an unparalleled asset that can empower their industry partners and more Broadly any advertiser benefits.
By joining forces, the two companies will further strengthen their retail media leadership in their respective industries:
Carrefour The market potential was identified early on and paved the way in Europe by establishing Carrefour Links, its data collaboration platform and retail media offerings. With its unique first-party data in quantity and quality, representing 8 billion transactions and 80 million customers worldwide, Carrefour Links already serves more than 300 brand partners.
Similarly, Publicis Since the acquisition of Epsilon and CitrusAd, best-in-class retail media capabilities have been developed, and the June 2022 launch of the industry’s first unified on-site and off-site retail media platform: CitrusAd, powered by Epsilon. Powered by Epsilon’s 300 million CORE IDs, the platform provides best-in-class identity resolution, does not rely on third-party cookies, and optimizes activation with privacy by design. Epsilon and Citrus supply equipment to more than 150 retailers worldwide, with leading positions in the US and UK.
With a multi-format network of more than 13,000 stores in nearly 40 countries, the Carrefour Group is one of the world’s leading food retailers. The group achieved revenues of EUR 81.2 billion in 2021. Its general store network of more than 370,000 employees has helped Carrefour become a global leader in food transformation, bringing quality, affordable food to everyone every day, no matter where they are. More than 500,000 people work for Carrefour worldwide. Headquartered in France, Carrefour is publicly listed on Euronext Paris (symbol ISIN: FR0000120172, CAC 40).
For more information, visit www.carrefour.com, or find us on Twitter (@GroupeCarrefour) and LinkedIn (Carrefour).
About Publicis Groupe – The Power of One
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global leader in communications. The group is positioned at every step of the value chain, from consulting to execution, combining marketing transformation and digital business transformation. Publicis Groupe is a privileged partner in transforming its clients to enhance personalisation at scale. Groupe relies on ten expertise concentrated in four main activities: Communications, Media, Data and Technology. Through a unified and fluid organization, its clients have easy access to all its expertise in each market. Publicis Groupe operates in more than 100 countries and employs approximately 96,000 professionals.
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