Todd Parsons: Thanks, Megan. Ygal, nice to hear your voice. On the 1%, I just wanted to reinforce that we’ve been getting ready for this testing period for a well over a year technically. And the objective is for us to compare and contrast advertiser ROAS expectations at constant spend with the impact to publisher CPMs. I think we’re probably the only company that is deploying that methodology, which shows the cause and effect of the ad dollars to publishers CPMs. With that, the readiness that we’re preparing for the test is quite technical. It involves full pipelines, including dedicated bidding models, new infrastructure, an entirely different strategy for shopper behavior collection, storage, adapting to the interest group approach of protected audience and Privacy Sandbox and so forth.
So what we’re doing now is getting ready for using all those things, getting ready for a stable testing period, wherein we will report the relationship between ROAS and Publishers EPM. And in that, we will be providing feedback consistently to both the CMA and to Google so that any improvements to the API, which will drive performance in that relationship are realized. So it’s a very – it’s an accelerated process today, given all of the excitement and noise about the testing period, and we’re right on schedule. We’ll report results just as soon as we have them to report.
Megan Clarken: And I’ll just take on the other question you had on commerce audience. So we’re clearly thrilled at 60% growth for Q4 and 42% for the year. Approximately half or about $10 million of the decline in retargeting in Q4 was a switch over to commerce audience. But more broadly, commerce audience is benefiting from our AI. It’s benefiting from the multiple addressability solutions with contextual and other cookies list signals. And 70% of our revenue in Marketing Solutions now covers across marketing – both Retargeting and Commerce Audience solutions for our clients. So we feel good about it, and we do continue to expect a shift from Retargeting to Commerce Audience more broadly. And for our clients, we look to have the always on advertising across all the methods of retaining and acquiring new clients, and that would also include with matter [ph] as well.
Ygal Arounian: Thank you so much. That’s very helpful.
Operator: Our next question comes from Richard Kramer with Arete Research. Please go ahead.
Richard Kramer: Thanks very much. One for each of you. I try to make it quick. Megan, you mentioned the material scale edge and addressability in a market where obviously signal is going to get more scarce. Do you think you can get a material increase in your market share of gross media spend, maybe in some areas, for example, CTV where Criteo hasn’t traditionally played. Todd, you hopefully laid out in your blog post the time lines for this initial wave of Privacy Sandbox testing and obviously, there were a lot of concerns expressed by IAB Tech lab. How do you help marketers with the lack of preparedness without scaling up headcount to support them with managed services and so forth? And lastly, Sarah, were there any one-offs in this – in the take rates of marketing solutions, for example, Criteo getting paid by Google to test Privacy Sandbox, anything else that explains that big effective take rate jump? Thanks.
Megan Clarken: Hey, Richard, great. I think we’ve got these. Let me take the first one. Certainly, in terms of scale driving our ability to grow share is what we have to do. I mean it’s one of the underlying promises that the strategy is to extend some allocation of audiences across all channels as opposed to just being limited to Retargeting, there’s a much, much, much bigger marketplace for that than there has ever been for Retargeting. Now that’s not to say Retargeting is not important. It is an important tactic as you know, in terms of the bottom of the funnel. But our strategy has enabled our clients to be able to take campaigns and shift them during flight up and down the funnel in terms of tactics, but also across formats and across channels as well.
CTV is a great place to talk about. It is an environment that is not susceptible to third-party cookie deprecation. But it is an environment, which you don’t clearly know who’s sitting in front of the screen if it is a TV screen at high minutes [ph] slowly becoming more programmatic, but that’s not where it started. And from a Retail Media perspective, it’s a little ways to go until it becomes a true Retail Media proposition. But in terms of targeting and finding allocation of audiences on that environment, yes, it’s an opportunity. For us, what we have is addressability capability with a differentiator of commerce, a differentiator of knowing where shoppers are, which is what nobody else has. And so for us, this is what’s driving the strategy to, over time, of course, make what we’re doing in the middle and upper funnel be so much larger.
Todd Parsons: I can talk about the – Richard, I can talk about the – about the allocation, the resource allocation. I think what’s important to note there is we’ve been working on cookie loss and signal deprecation since 2017. And so the same teams that we’re working on the problem from the start have only accelerated based on what we learned and what we accomplished to protect our clients from that signal loss. I look at it also, given that we have those teams in place, and they have great expertise. I look at the opportunity for us to build more quickly on what has been learned already and capture more market on the other side of cookie deprecation because we’ve already been there working the problem. So we look at the work done on Privacy Sandboxes being portable to other interest group creation that uses our unique commerce assets, whether it goes to CTV or another channel.
We’re sort of agnostic to as long as it performs for clients, and we have the people in place to do this work, and they’re doing it already.
Sarah Glickman: And just to address your retargeting comment, there is no one-timer in that. The benefit is a strong Q4 holiday season, along with our AI performance engine continuing to drive precision targeting across our campaign spend and also our ability to find signals in – across inventory, which – some of which has been at a lower CPM. So I would say it’s all of the investments we’ve made in AI are really delivering for us on the Retargeting and across our marketing solutions space.
