Criteo: The French AdTech That Out-Competed Google
€2B revenue — B2B focus = less visibility but more profit
The Unknown Giant
You've never heard of Criteo. Yet they serve ads to 2.5 billion people monthly and generate €2B+ revenue annually.
Why invisible? B2B model. Consumers don't see Criteo. Retailers do.
While Google and Facebook fought for consumer attention, Criteo built enterprise relationships. Less sexy. More profitable.
The System
The Technical Moat
Criteo's core technology: predictive algorithm for product recommendations (retargeting).
Built by French mathematicians/engineers who couldn't compete with Google's capital but could out-engineer them on specific use case.
Why Criteo Won Technical Battle:
- Specialization: Only retargeting (vs Google's everything). Deep > broad.
- French Math: Algorithm team from top French engineering schools (École Polytechnique, etc.)
- Efficiency: Couldn't afford Google's infrastructure, engineered 10x more efficient solution
- Iteration: Stayed focused, improved algorithms for 10+ years
The Business Model
Revenue: Performance-based (paid only when ads drive sales)
This aligned Criteo with clients → long-term relationships → recurring revenue
The Lessons
Lesson 1: B2B > B2C for Capital-Constrained
B2C requires massive marketing spend. B2B requires sales team + product excellence. France has talent for B2B (engineering, enterprise sales).
Lesson 2: Niche Dominance > Broad Mediocrity
Criteo didn't compete with Google on everything. Dominated one specific thing (retargeting). That's enough for €2B business.