Commerce media company, Criteo, is expanding its partnership with Microsoft Advertising to help connect brands and retailers in the fragmented retail media market.

Microsoft Advertising plans to work with Criteo as its preferred onsite media partner, extending Microsoft Advertising's demand to Criteo's global network of 225 retailers whilst enabling Microsoft Advertising's retailer clients to access Criteo's monetisation technology.

Retail media is projected to represent over $150 billion in global ad spend by 2026, according to GroupM. Market fragmentation is cited as a significant challenge by 93% of marketers worldwide. The collaboration between Criteo and Microsoft Advertising is expected to bring new revenue to Criteo's retail media network partners and empower Microsoft Advertising's 500,000+ active advertiser clients to achieve stronger campaign performance.

"We're thrilled to expand our relationship with Microsoft Advertising to make it easier for brands to buy retail media and for retailers to expand demand into their media solutions," said Chief Revenue Officer at Criteo, Brian Gleason.

"Together, Microsoft Advertising and Criteo can chart a new path forward for retail media, empowering the entire ecosystem with scale, simplicity, and innovation," said Vice President of Global Partnerships and Retail Media at Microsoft Advertising, Lynne Kjolso.

Criteo is also exploring the potential to tap into Microsoft Advertising's leadership in generative AI and innovations, such as its AI-powered Retail Media Creative Studio. The demand integration and preferred onsite collaboration are expected to roll out in the second half of 2024.