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Retail

Criteo debuts auction-based display ads for retail media flexibility

Programmatic technology brings bidding dynamics to retail environments, supporting major clients like Costco and Shipt with automated pricing options.

Luis Rijo

• 6 min read
Criteo's auction-based display ads enable real-time bidding across major retailers like Costco and Shipt.
Criteo's auction-based display ads enable real-time bidding across major retailers like Costco and Shipt.

Criteo announced on June 17, 2025, the launch of its Auction-Based Display technology, introducing programmatic flexibility into retail media environments. The advancement represents a shift from fixed pricing models toward advertiser-driven bidding mechanisms that reflect real-time category dynamics and seasonal demand patterns.

According to Criteo, the technology addresses the unique requirements of retail platforms that demand highly relevant and timely advertisements. Unlike traditional publisher sites, retail environments require ads that align closely with product discovery and purchasing intent. The auction-based approach complements existing reservation-based deals with flexible buying options that better accommodate fluctuating market conditions.

Summary

Who: Criteo, leading retailers Costco and Shipt (current partners), and upcoming Albertsons Media Collective, targeting brands and agencies seeking flexible retail media solutions.

What: Launch of Auction-Based Display technology that introduces programmatic bidding mechanisms to retail media environments, complementing fixed pricing with real-time auction dynamics for display advertising.

When: Announced June 17, 2025, with global availability for retailers using Criteo's platform immediately following the announcement.

Where: Global implementation across retail environments, with specific mention of partnerships in the United States including major retailers Costco, Shipt, and Albertsons Media Collective.

Why: To address evolving needs of advertisers and retailers by providing flexible, automated solutions tailored to retail environments that require highly relevant and timely advertisements, enabling better yield optimization and competitive positioning.

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Technical implementation supports major retail partnerships

Leading retailers including Costco, Shipt, and the upcoming Albertsons Media Collective will implement the auction-based buying options alongside their existing advertising offerings. The technology provides biddable trading optionality, flexible pricing structures, streamlined workflows, and advanced controls for ad relevancy.

According to the company's announcement, the system allows advertiser-driven bidding that better reflects real-time category dynamics and seasonal demand. Combined with advanced controls for ad relevancy, retailers can maximize yield on high-demand placements while maintaining competitive positioning across the broader ecosystem.

The auction mechanism differs from traditional display advertising approaches by incorporating retail-specific data signals. These include product availability, inventory levels, category performance metrics, and shopping behavior patterns that influence bid valuations and ad placement decisions.

Standardized campaign management across multiple formats

Criteo's platform integrates auction-based display with existing Sponsored Products, Display, and Video campaigns within a single interface. This consolidation enables standardized campaign execution and measurement across multiple ad formats, simplifying multi-retailer campaign optimization at scale.

The unified approach addresses a persistent challenge in retail media where brands often manage campaigns across numerous retail partners using different platforms and measurement standards. According to Melanie Zimmermann, General Manager of Global Retail Media at Criteo, "Display advertising is a proven retail media format, but the needs of advertisers and retailers are evolving. Our new auction-based offering is modernizing display technology—creating a flexible, automated solution that's tailored to the retail environment."

The technology supports both onsite and offsite retail media campaigns. Onsite campaigns appear within retail websites and mobile applications, while offsite campaigns extend reach to external websites and platforms using retail data for targeting purposes.

Market context reveals growing retail media momentum

The announcement occurs during significant expansion in the retail media sector. European retail media spending outpaced the broader advertising market by nearly four times in 2024, with retail media growing 22.1% compared to the overall advertising market's 6.1% growth.

Criteo's retail media business has demonstrated strong performance, with the segment generating $90 million in contribution ex-TAC during the fourth quarter of 2024, representing 23% growth at constant currency. The company serves approximately 225 retailers and 3,500 brands globally.

The timing aligns with broader industry developments in programmatic advertising. Amazon recently consolidated first-party advertising inventory across multiple owned properties, while PayPal introduced shoppable storefront ads across publisher websites.

Competitive positioning in evolving landscape

The auction-based technology positions Criteo within the competitive retail media technology sector. The company has faced challenges with client relationship changes, including a major retail media client's decision to discontinue managed services in late 2025, highlighting the importance of platform technology offerings.

Criteo's approach emphasizes technology-first solutions rather than managed services. According to previous company statements, this strategy shift aims to create more scalable revenue streams while reducing dependency on labor-intensive service models.

The company has expanded partnerships significantly, including comprehensive integration with dentsu for global commerce media expansion and powering retail media for Albertsons Media Collective.

Technical specifications and global availability

The Auction-Based Display technology operates through Criteo's Commerce Max demand-side platform and Commerce Yield retailer monetization suite. The system processes bids in real-time, considering factors including advertiser budgets, campaign objectives, product relevancy scores, and competitive positioning.

Advanced controls for ad relevancy ensure advertisements align with specific product categories, seasonal trends, and shopping contexts. The technology incorporates machine learning algorithms that optimize bid adjustments based on performance data and market dynamics.

According to Criteo, the auction-based system maintains compatibility with existing measurement and attribution systems. This includes support for MRC-accredited measurement solutions that provide validation for display rendered impressions and clicks across desktop, mobile web, and in-app environments.

The technology is available globally to retailers using Criteo's platform. Implementation requires integration with existing retail media infrastructure, including inventory management systems, customer data platforms, and advertising servers.

Industry implications for marketing professionals

The introduction of auction-based retail media represents a significant development for marketing professionals managing multi-channel campaigns. Traditional retail media often required separate negotiations and fixed pricing agreements with individual retail partners, creating complexity in campaign planning and optimization.

Auction-based mechanisms enable more dynamic budget allocation and performance optimization across retail media networks. Advertisers can adjust spending based on real-time performance data rather than predetermined budget allocations established through fixed-price agreements.

The technology also addresses measurement challenges in retail media. According to industry analysis, retail media networks have historically provided limited standardization in reporting metrics and attribution models. Auction-based systems can provide more consistent measurement frameworks that align with programmatic advertising standards.

For brands operating across multiple retail channels, the auction approach may reduce the complexity of managing different pricing models and optimization strategies. However, success will depend on the availability of adequate inventory and competitive dynamics within specific retail environments.

Strategic considerations for implementation

Marketing teams considering auction-based retail media should evaluate several factors including campaign objectives, target audience characteristics, product categories, and competitive landscapes. Auction mechanisms typically favor advertisers with sophisticated bidding strategies and real-time optimization capabilities.

The technology may particularly benefit brands with fluctuating demand patterns, seasonal products, or time-sensitive promotional campaigns. These scenarios often require rapid adjustments to advertising spend and targeting parameters that fixed-price models cannot accommodate effectively.

Budget management becomes more complex with auction-based systems. Advertisers must establish bidding parameters, daily spending limits, and performance thresholds to maintain cost efficiency. This requires ongoing monitoring and optimization rather than the set-and-forget approach possible with reservation-based deals.

Data integration represents another consideration. Auction-based retail media platforms typically require connectivity with customer relationship management systems, inventory databases, and performance measurement tools to optimize campaigns effectively.

Timeline

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