PARIS AND MASSY, France–(COMMERCIAL WIRE)–Regulatory news:
Publicis Groupe (Paris: PUB):
Carrefour Group [Euronext Paris FR0000120172, CAC 40] and Publicis Groupe [Euronext Paris FR0000130577, CAC 40] announce their intention to create a joint venture to address the burgeoning media retail market in continental Europe and Latin America.
Retail Media is the fastest growing channel for media spend, revolutionizing traditional media hierarchies. Over the next three years, it’s expected to outstrip TV advertising spending by US consumer packaged goods companies. In continental Europe, retail media is rapidly gaining ground and the target market is expected to exceed €5bn by 2026, according to IAB and internal analysis.
Through this joint venture and as founding partners, Carrefour and Publicis will leverage their leadership positions in their respective industries, with the aim of bringing to Europe and Latin America the same scale and connectivity that is enabling the rise of retail media in the USA
By combining Publicis’ advanced technologies, ‘CitrusAd powered by Epsilon’, with Carrefour Links’ retail media knowledge and experience, this new venture will build a complete media player that addresses the entire Retail Media value chain. It will span technology for inventory building and data exchange for merchants to full merchandising of data and media solutions for advertisers, directly supported by commercial transactions, across continental Europe, Brazil and Argentina.
This joint venture has the ambition to bring together multiple new retailers, build an unrivaled inventory network and accelerate the development of retail outlets in Europe and Latin America. Their ultimate goal is for any business with direct customer touchpoints and proprietary data to join the platform to monetize their assets and partner with advertisers to create more efficient marketing strategies and boost their business.
Alexandre Bompard, Chairman and CEO of the Carrefour Groupstated: “We realized very early on that our data had enormous potential value. We were one of the first retailers to launch retail media. Last year we accelerated with the creation of Carrefour Links. Today we want to go further and beyond the limits of our current model. We are going to create an alliance with an industry expert, Publicis Groupe, to change three things: first, we will put technology at the center of our model, second, we will move up the value chain creating retail media solutions. by ourselves, and third, we will conquer new markets, both in continental Europe and in Brazil. With this alliance, our digital transformation takes on a new dimension and allows us to access a new market with great growth”.
Arthur Sadoun, Chairman of the Board of Publicis Groupesaid: “After the digital media revolution in the 2000s and the social media revolution in the 2010s, retail media is once again upending established hierarchies and opening up new opportunities for marketers. Until now, market fragmentation in Europe and Latin America has made it difficult for brands to unlock their full potential. That is why we are taking action today. By joining forces with Carrefour, a clear leader in this space in Europe and Latin America, we will be able to provide customers with unparalleled customer understanding and direct access to premium inventory, which generates the highest conversion rates and return on investment. investment. Advertising spend for advertisers. This is a critical milestone in helping marketers take back control of their customer relationships, accelerate their readiness for a world without cookies, and deliver a successful media strategy.”
The joint venture will be owned 51% by Carrefour and 49% by Publicis Groupe. It is expected to start operations in the first half of 2023, subject to customary regulatory conditions and customary legal inquiries.
retail media Leverages retailers’ premium relationships with their customers to help marketers run targeted marketing campaigns at retailers’ premises (on-site or in-store) and extend their reach at publishers’ premises with retail data. Provides measurement validated directly by online and in-store transactions.
The new data regulation and the early end of third-party cookies are posing a real challenge for digital platforms and marketers to continue reaching customers. In this context, large loyalty programs operated by retailers, with strong consent databases, as well as their regular points of contact with customers online and in store, provide them with unparalleled assets that can benefit their industry partners and , more generally, to any advertiser.
By joining forces, both companies will further strengthen their retail media leadership in their respective industries:
Carrefour identified the potential market early on and paved the way in Europe by building Carrefour Links, its retail media offering and data collaboration platform. Thanks to its first-hand data, unique in volume and quality, which represents 8 billion transactions and 80 million customers worldwide, Carrefour Links is already serving more than 300 Brand partners.
Similarly, you publicize has built best-in-class retail media capabilities since the acquisition of Epsilon and CitrusAd, launching in June 2022 the industry’s first unified on- and off-site retail media platform: CitrusAd, powered by Epsilon. This platform, powered by Epsilon’s 300 million CORE IDs, offers best-in-class identity resolution, with no reliance on third-party cookies, for optimized activation with privacy by design. Epsilon and Citrus equip more than 150 retailers worldwide and have a leading position in both the US and the 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 recorded a turnover of 81.2 billion euros in 2021. Its network of consolidated stores has more than 370,000 employees who help make Carrefour the world leader in the food transition for all, providing everyone with access to affordable and high-quality food. quality every day. no matter where they are. In total, more than 500,000 people work for Carrefour around the world. Carrefour is based in France and is listed on the Euronext Paris stock exchange (ISIN code: FR0000120172, CAC 40).
For more information visit www.carrefour.comor find us on Twitter (@GroupeCarrefour) and LinkedIn (Carrefour).
About Publicis Groupe – The Power of One
Publicis Group [Euronext Paris FR0000130577, CAC 40] is a world leader in communication. 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 improve personalization at scale. The Group has ten specialized knowledges concentrated in four main activities: Communication, Media, Data and Technology. Through a unified and fluid organization, your clients have easy access to all your experience in all markets. Present in more than 100 countries, Publicis Groupe employs around 96,000 professionals.