Despite Apple’s game-changing ITP update, Criteo's revenues have dipped just 1% year-on-year
Less than a year after Criteo was forced to rethink its business after Apple launched a pivotal privacy update, revenues are holding relatively steady.
Criteo has offices in New York, Paris, London, Boston (pictured) and more / Criteo
The French company posted a more tempered set of results for the second quarter of the year. Turnover clocked in at $537m between April and June, a year-on-year decrease of 1% against 2017’s $542m and a 5% slide on the $564m it reported in the first three months of 2018.
Despite the dip though, and some "headwinds" from the introduction of GDPR, Criteo is still faring better than expected.
Last year, the retargeting virtuoso suggested that Apple's Intelligent Tracking Prevention (ITP) feature which was announced last June then launched on Safari in September, was likely to cut revenues by as much as one fifth in 2018. But, if the first half of the year is anything to go by, those forecasts may have been pessimistic.
ITP makes it trickier for third parties to to obtain data on users of Apple’s Safari web browser by limiting the ability of website owners and adtech outfits to track consumers using cookies to a 24-hour window.
At the end of last year, Criteo promised it was working on a “sustainable solution for the long-term” in response to Apple. Now, chief executive JB Rudelle has said the firm will lean less on manufacturers and redesign its “platform architecture” so it’s not at the mercy of external browser settings.
On top of this, Criteo has spotted opportunities away from web advertising in the form of in-app and email.
In-app in particular, Rudelle told Business Insider, was the “fastest growing segment for the company because it doesn’t rely on cookies.
Commenting on Wednesday's results, Rudelle said:"From the conversations I have had with clients since returning as chief executive, I've heard many positive comments on the value we bring. We are building on this trust to expand our client relationships with more products and solutions".
This quarter, excluding traffic acquisition, costs grew 5% year-on-year to $230m, representing 42.9% of of Criteo's total turnover.
The company ended the quarter with 19,000 commerce and brand clients, a 16% increase year-over-year, while maintaining client retention at close to 90% for all products.