State of Mobile Commerce
State of Mobile Commerce Cross-device shopping starts and ends on mobile Q3 2015 Brazil State of Mobile Commerce Q3 Highlights Criteo’s analysis of shopping data from Q3 2015 demonstrates that smartphones are increasingly becoming the purchase device of choice in a multi-device world: • Mobile is becoming the preferred purchase device for cross device shoppers: 5 in 10 transactions now involve multiple devices. Cross-device purchasers are 3 times more likely to complete the transaction on their mobile device than the average user. • Apps can be your highest performing channel: Retailers focusing on apps are finding gold. Conversion rates on apps heavily outperform even the desktop. • Smartphones are the key for top quartile retailers: Top quartile is now generating almost a third of sales from mobile, mainly due to much better optimization of smartphone conversion rates. Copyright © 2015 Criteo These trends and forecasts come from Criteo’s Q3 2015 State of Mobile Commerce Report, based on its unique pool of online shopping data. Brazil Mobile Commerce Trends #1 Mobile is becoming the preferred purchase device for cross-device shoppers More than half of purchases now involve multiple devices* Cross-device shopping is the new normal. Brazil Cross-Device Share of eCommerce Transactions User completed purchase on TABLET SMARTPHONE DESKTOP % of users who used multiple devices in path to purchase 59% 60% 55% Retailers need to redesign their online buying experience to reflect the fact that almost half of users visit them using multiple devices in the days leading up to purchase. For purchases completed on laptops & desktops, 55% of buyers used at least one additional devices to visit the same retailer prior to purchase. On mobile, 59-60% of buyers used an additional device prior to purchasing on their mobile. Copyright © 2015 Criteo * Where the consumer has more than one device. Based on Criteo’s cross device product providing exact matches of users across multiple devices. Mobile is becoming the purchase device for cross-device shoppers Mobile Share of Transactions Q3 2015 Cross-device purchasers are 3 times more likely to use their mobile to complete a transaction than the average. 60% What does this mean? Increasingly consumers are browsing on one device – perhaps a work PC or home laptop – and then finalizing that transaction when they have their mobile in front of them. The idea that the mobile is just a research device is simply wrong. We expect the fraction of cross device transactions completed on mobile to grow fast as shoppers get more and more comfortable with completing purchases while on the go. Copyright © 2015 Criteo 20% ALL TRANSACTIONS CROSS DEVICE TRANSACTIONS * Where the consumer has more than one device. Based on Criteo’s cross device product providing exact matches of users across multiple devices. Nearly one-third of desktop sales now involve mobile prior to purchase Devices used to visit retail site prior to purchase MOBILE ONLY 7% Significant amount of cross device transactions involve some mobile research prior to the purchase event – 31% of desktop transactions involve browsing through at least a mobile prior to purchase. MOBILE AND DESKTOP 24% That means for a single retailer, shoppers are visiting the retailer’s desktop and mobile browser sites when researching and making a purchase. DESKTOP ONLY Mobile is omnipresent in the customer’s path to purchase. Copyright © 2015 Criteo 68% PURCHASED ON DESKTOP * Based on Criteo’s cross device product providing exact matches of users across multiple devices #2 Apps can be your highest performing channel Apps now generate at least half of all mobile sales for retailers who have made their app experience a priority* Average App vs. Mobile Browser Share of Mobile Transactions for a Single Retailer RETAIL TRAVEL 58% 49% Retailers who have prioritized their mobile app experience as a key revenue driver see significant share of transactions via their app. For these retailers, apps generate 58% of all mobile revenue. Travel is slightly less at 49% of mobile transactions. It is important to note that many retailers have not made this investment in apps, in which case sales from apps are often negligible. Copyright © 2015 Criteo MOBILE BROWSER APPS Source: Criteo analyzed transaction data from committed app retailers worldwide for the month of July 2015; *to be considered a committed app retailer, a retailer had to have at least 25% of eCommerce transactions on a mobile device. Of those mobile transactions, more than 10% are from mobile apps. Apps convert visits to sales better than the desktop site Apps convert at a higher rate than mobile browser – by a factor of 3.7x in the case of retail. Mobile Retail Conversion Rates for Committed App Retailers* RETAIL More remarkably, apps convert twice as high as the desktop for retail, and 1.6x higher than the desktop for travel. TRAVEL 1.6x 2.0x In other words, apps are a better consumer experience than any other technology. 1.7x 1.8x MOBILE BROWSER Copyright © 2015 Criteo DESKTOP APP MOBILE BROWSER DESKTOP APP Source: Criteo analyzed transaction data from committed app retailers worldwide for the month of July 2015; *to be considered a committed app retailer, a retailer had to have at least 25% of eCommerce transactions on a mobile device. Of those mobile transactions, more than 10% are from mobile apps. Apps work because they make browsing products fun, and buying them easy Apps deliver a 3.7x higher conversion rate than mobile browser. Conversion Funnel from landing on site MOBILE BROWSER Products viewed per user APP Products viewed per user 4.3 x3.5 Add-to-basket x2.4 Add-to-basket Purchase x1.6 Purchase CONVERSION RATE 3.7 CONVERSION RATE 14.4 This is driven by two main factors: Browsing products is easy and fun on apps. The mobile app experience is perfect for swiping through visually appealing images. As a result, the average user sees 14 products via the app, vs. 4 products on the browser. Also, an app user is 2.4 times as likely to add products into the basket. It is also easier to complete a purchase, leading to a purchase rate that is 1.6x higher than via the mobile browser. Copyright © 2015 Criteo Source: Criteo analyzed transaction data from committed app retailers worldwide for the month of July 2015; *to be considered a committed app retailer, a retailer had to have at least 25% of eCommerce transactions on a mobile device. Of those mobile transactions, more than 10% are from mobile apps. Customer spend per transaction is bigger with apps than on the desktop Mobile Order Values Compared to $100 Spent on the Desktop for Committed App Retailers* Historically mobile has been considered to have a low basket size compared to the desktop. For mobile apps, this is not the case. Order value per transaction for apps is higher than desktop and mobile browser $116 on app compared to $100 on desktop and $91 on mobile browser. In other words, customers are spending more per transaction through the app than when using the full-screen desktop experience. $116 $91 $100 Even on mobile browser the transaction size is only 9% smaller than on the desktop. MOBILE BROWSER Copyright © 2015 Criteo DESKTOP APP Source: Criteo analyzed transaction data from committed app retailers worldwide for the month of July 2015; *to be considered a committed app retailer, a retailer had to have at least 25% of eCommerce transactions on a mobile device. Of those mobile transactions, more than 10% are from mobile apps. #3 Smartphones are the key for top quartile retailers Top quartile retailers are utilizing mobile better Brazil Mobile Share of eCommerce Transactions Over the last quarter, mobile commerce has grown fast in Brazil. The average retailer has seen their mobile transaction share grow 35% from 14% share to 19% share this quarter. Top quartile retailers have grown mobile transaction share 24% over the last quarter, and now close to a third of all their transactions are on mobile devices. 31% 14% Q2 2015 19% Q3 2015 AVERAGE Copyright © 2015 Criteo 25% Q2 2015 Q3 2015 TOP QUARTILE Smartphones continue to displace tablets in Brazil The majority of mobile transactions in the Brazil come from smartphones, increasing to 77% this quarter. Brazil Smartphone Share of Mobile Transactions 65% 73% 77% As smartphone screens continue to grow, they have gained share over tablets. This suggests that consumers are increasingly comfortable purchasing on smartphones. SMARTPHONE TABLET 22% Q1 2015 Copyright © 2015 Criteo Q2 2015 Q3 2015 Top quartile retailers are doing an even better job on smartphones The top quartile retailer has optimized their smartphone conversion rate and is two times better than the average retailer. The conversion rate for top retailers is 2.2% while the conversion rate for the average is 1.9%. Brazil Smartphone Conversion Rate 2.2% 1.9% 1.2x AVERAGE RETAILER Copyright © 2015 Criteo TOP QUARTILE RETAILER Global Mobile Commerce Trends Global mobile transaction share is at 35% Mobile Share of Retail eCommerce Transactions 50% mCommerce is now 35% of all eCommerce transactions globally – based on an accurate weighting of eCommerce market size by country. GLOBAL AVERAGE 35% Brazil is at the back of the pack, which suggests there is a lot of growth ahead. The UK is now performing at Asia levels with 46% of its ecommerce transactions coming in from mobile. Low penetration markets are growing very fast. 0% Countries with the highest mobile adoption are fairly stable. As a result, cross-device purchasing is likely to be the long-term normal rather than a mobile-only world. Q2 2015 Copyright © 2015 Criteo Q3 2015 Worldwide, cross device purchasing is 50% of eCommerce transactions Cross-Device Share of Retail eCommerce Transactions* 70% GLOBAL AVERAGE 50% Brazil is among the world leaders in crossdevice purchases. 0% Copyright © 2015 Criteo * Where the customer has more than one device. Based on Criteo’s Universal Match product providing exact matches of users across multiple devices. Smartphone continues to dominate worldwide Smartphone and Tablet Share of Retail eCommerce Transactions 50% Across the globe, smartphone has a higher share of mobile transactions than tablet. Japan and South Korea see over 40% of eCommerce transactions from smartphones. Tablets are still a bit bigger than phones in the UK, Germany, France, Netherlands and Russia. But globally smartphone growth is much higher than tablet. 0% SMARTPHONE Copyright © 2015 Criteo TABLET Brazil conversion rate shows a lot of room for improvement The UK has a higher conversion rate than Western countries, due to better usability and customer experience on mobile websites. Retail Mobile Conversion Rates Compared to the U.S. (Benchmarked at 100) 300% Mobile conversion rates in Japan are almost three times higher than the U.S. UNITED STATES 100 0% Copyright © 2015 Criteo What will the future look like? So what does the future hold? We see four big trends: • Growth in mCommerce is on a roll. By year-end, mobile share of eCommerce transactions is forecast to reach 33% in the U.S., and 40% globally. • Smartphones will continue to displace slower-growing tablets due to larger available screens. Apple is gaining ground on Android, but both are winners vs. a shrinking desktop. • Apps are the next frontier. Advertisers will start to significantly invest in their mobile app as a way to drive more conversions than desktop and engage with their loyal customers. • Dealing with cross-device behavior is the biggest challenge and opportunity for marketers in 2015. With half of transactions already cross-device, marketers have to talk to people and no longer to devices. Copyright © 2015 Criteo Mobile Commerce Report Methodology Individual transaction data analyzed Over 3,000 online retail and travel businesses globally How can marketers use this data? Benchmark your performance on relevant KPIs for your mobile browser, mobile app and cross-device channels 1.4 billion transactions per year across both desktop and mobile sites $160 billion in annual sales Copyright © 2015 Criteo *Data analyzed is for customer browsing and shopping behavior in April 2015, across desktop and all mobile devices (including iPhone, iPad, and Android smartphones and tablets) Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to About Criteo measure. Criteo has over 1,500 employees in 23 offices across the Americas, Europe and Asia-Pacific, serving over 7,800 advertisers worldwide with direct relationships with over 10,000 publishers. Criteo ads reach over 1 billion unique Internet users (comScore, March 2015). This and future Mobile Commerce reports can be found at: www.criteo.com/resources/mobile-commerce-report/ Methodology – This reports findings come from individual transaction level data sourced solely from Criteo based on a selection of around 3,000 online retail and travel businesses globally who have approximately 1.4 billion transactions per year on their desktop and mobile sites, resulting in approximately $160 billion worth of annual sales. The data analyzed is for customer browsing and shopping behavior in July 2015, across desktop and mobile (smartphone + tablet) devices including iPhone, iPad, and Android smartphones and tablets.