Small . . .Is Big Again · Copyright © 2015 Criteo 10 Mobile conversion rates are increasing...
Transcript of Small . . .Is Big Again · Copyright © 2015 Criteo 10 Mobile conversion rates are increasing...
Copyright © 2015 Criteo
Small . . .Is Big Again
Sunil Bhagwan
Head of Sales, Mobile
Eye For Travel, San Francisco 2015
Copyright © 2015 Criteo 2
Copyright © 2015 Criteo 3
Copyright © 2015 Criteo 4
7,000+ ADVERTISERS
R&D REPRESENTS
40% OF THE WORKFORCE
90% RETENTION RATE3
130+ COUNTRIES
8,000+ PUBLISHERS
(Networks, Exchanges & Premium Direct Partners)
1: 2nd in ComScore global rankings - March 2014 ComScore report
2: in 12 months preceding June 30, 2014
3: Annual rate
$198 Billion
Transactions
Analyzed / Yr
590 Billion+
Ads Served / Yr
$12 Billion Post-click Client sales generated2
925 Million Internet Users Reached Monthly1
Copyright © 2015 Criteo 5
Mobile now accounts for 30% of global ecommerce transactions
49%
45%
41%
28%
27%
26%
24%
24%
21%
20%
10%
Mobile Share of Online Retail Transactions, by Country
Japan
South Korea
UK
Spain
US
Germany
Italy
Netherlands
France
Russia
Brazil
Asia
Western
Markets
Emerging
Markets
Source: Criteo State of Mobile Commerce
Copyright © 2015 Criteo
Copyright © 2015 Criteo
Majority of mobile transactions are now on smartphones
6
US, Q4 2014
Source: Criteo State of Mobile Commerce
Copyright © 2015 Criteo
Smartphone vs. Tablet Share of Mobile Transactions
Smartphones Tablets
Copyright © 2015 Criteo
Standards emerging Mobile payments
getting easier
Enhanced Mobile
sites and apps
Smartphones getting
bigger & better
Copyright © 2015 Criteo
What are the advances driving this shift?
Copyright © 2015 Criteo
Form factor (size/screen) of midsize devices is ideal for apps, web and media consumption
Better for Apps Better for Web
Device form factor has normalized on ideal app/web size
Copyright © 2015 Criteo
Amazing Acceleration of iPhone Sales
US: % of Client Sales by Mobile OS
iPhone
Growth Rate
outpaced
Android by
100% during
the previous
8 months…
Copyright © 2015 Criteo 10
Mobile conversion rates are increasing
Mobile
Overall
Android
Smartphone iPhone
Android
Tablet iPad
2.5% 2.2%
2.0%
3.0% 3.1%
Mobile Retail
Conversion Rates
US, Q4 2014
Conversion Rate = (No. of Sales) / (No. of
*Users)
* Users include those with more than a single
**event on the websites
** Each time a visitor sees a web page, adds a
product to the basket, or makes an online
payment, etc., it is counted as an event.
Copyright © 2015 Criteo
Source: Criteo State of Mobile Commerce
Copyright © 2015 Criteo Copyright © 2014 Criteo
85
90
95
100
105
110
115
120
125 Mobile
Index
Desktop
Index
Mobile bookings growth
is faster than desktop
Copyright © 2015 Criteo
Mobile travel bookings by category
Copyright © 2015 Criteo
Reaching the Inflection Point
Android Desktop IPad
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000
Flights
Apartments
Car Rental
Cruise
Hotel
Packages
Rail
IPhone
Average booking
value by device and
category
H1 2014
worldwide
Copyright © 2015 Criteo
Mobile behavior with last minute bookings
Air
+21%
Hotels
-30%
Car
Rental
+13%
Booking value on mobile
14
Copyright © 2015 Criteo 15
What about apps?
Copyright © 2015 Criteo
Copyright © 2015 Criteo
Share of In App Transactions for Sample Customers
16
• Some clients
who invested
early are seeing
>10% of total
sales from Apps
• Audience size
and usability are
important areas
of consideration
Copyright © 2015 Criteo
Mobile App Challenges Today
MAJORITY OF APPS
INFREQUENTLY USED :
3.7 FREQUENCY OF
USE BY WEEK1
MOST APPS HAVE
RETENTION LOWER THAN
35% AFTER 90 DAYS1
HISTORICALLY,
VERY LOW CONVERSION RATES FOR MOBILE APP2
1 SOURCE : FLURRY ANALYTICS
2 INMOBI, “APP INSIGHT REPORT”
8
Copyright © 2015 Criteo
Downloads ≠ Revenue
18
Total app downloads
500k
Users who have
used the app once
and/or uninstalled
325k
Monthly active users
175k
In-app purchasers
70k
Copyright © 2015 Criteo
Source: digital strategy consulting 2013
Copyright © 2015 Criteo 19
So What
Should
You Do?
Copyright © 2015 Criteo
iPhone share of mobile
transactions 0 70.0%
Know Your Mobile Benchmarks
Device Share YOU
Industry
Average
40% ??
Mobile AOV in relation to
desktop 0 100.0%
Shopping Cart 94% ??
Industry
Average
YOU
Mobile share of Total
eCommerce transactions 0 40.0%
33% Mobile Revenue Share
??
Industry
Average
YOU
Copyright © 2015 Criteo
Invest in
your Apps
Mobile
optimize
site
Consumers are no longer
only show rooming…
they are going to buy.
Know
your
“3”
Share of mobile, conversion
rate and AOV should be
tracked monthly
Build for usability, make it
transactional and stay
engaged
Mobile marketer’s playbook…
21