Global Mobile Commerce - Criteo report Q42014

Copyright © 2014 Criteo
State of Mobile Commerce
Q4 2014

Executive Summary
Mobile commerce adoption is far ahead of expectations. Globally, mobile now accounts for 30% of eCommerce
transactions. Mobile will be 50% of US eCommerce transactions quite soon, as conversion rates reach Asian levels.
There are five new mobile shopping trends eCommerce marketers need to consider:
• Mobile is now about purchasing, not just researching: Conversion rates are high, across all devices and retail categories.
• Think smartphones: smartphones now generate more transactions than tablets.
• Yes, you will buy a designer handbag from your phone: a third of fashion transactions now come from mobile, with average order
values close to desktop levels.
• Top quartile US retailers generate almost 40% of their ecommerce transactions from mobile, against 27% for US overall.
• It’s not just Apple: Android phones now generate a third of US smartphone shopping transactions, and much more internationally.
Methodology – This reports findings come from individual transaction level data sourced solely from Criteo based on a selection of over 3,000 online retail and travel businesses globally who have approximately 1.1 billion transactions per year on their desktop and mobile sites, resulting in approximately $130 billion worth
of annual sales. The data analyzed is for consumer browsing and shopping behavior in October 2014, across desktop and mobile (smartphone + tablet) devices including iPhone, iPad, and Android smartphones and tablets.
These trends come from Criteo’s first quarterly State of Mobile Commerce Report, based on its unique pool of online
shopping data covering more than a billion transactions totaling over $130Bn of annual sales.

The 5 New US
Mobile Shopping
Trends

#1Mobile is now about
purchasing, not just
researching.

Mobile conversion rates are high
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.
Mobile
Overall
• Overall, mobile users look at more
products than desktop users before they
purchase. As a result, mobile accounts
for 27% of all eCommerce transactions in
the US, but mobile traffic share is much
higher at 38%.
• Tablet converts better than smartphone
today. This partly reflects larger
screensizes, but also weaknesses in
smartphone-specific site optimization.
• Apple and Android devices have very
similar conversion rates.
Android
Smartphone
iPhone
Android
Tablet
iPad
Mobile Retail Conversion Rates
2.5%
2.2%
2.0%
3.0% 3.1%

Shoppers are purchasing on mobiles across all categories
Travel
Mass
Merchants
Health &
Beauty
Home
Mobile Share of Total eCommerce Transactions
Fashion &
Luxury
Sporting
Goods
33%
27%
26%
23%
20%
15%
US, Q4 2014
• The Fashion and Luxury category has a
high level of mobile adoption, a pattern
we see globally.
• In contrast, the share of mobile
transactions are low in the Home vertical,
which includes home improvement,
gardening and interior design products.

#2Top quartile retailers
generate almost
40% of transactions
from mobile.

Significant opportunity to increase mobile sales by adopting best practices
Mobile Share of eCommerce Transactions, Top vs. Bottom Quartile
30%
27%
35%
9%
6%
Travel
Top Quartile
Average
Bottom Quartile
Retail
39%
• Mobile share of transactions for the
top quartile of retail and travel
players is 35-40%, while the bottom
quartile generates less than 10%
from mobile.
• This big variation is driven by
factors including the quality of the
website’s mobile optimization, and
the type of products being sold. For
example, fashion and luxury items
are purchased more on mobile than
home improvement products.
US, Q4 2014
Note -Top quartile consists of retailers with the highest share of mobile transactions, and bottom quartile consists of retailers with the lowest share of mobile transactions.

#3Smartphones have
overtaken tablets in
mobile transactions.

Smartphone vs. Tablet Share of Mobile Transactions
Majority of mobile transactions are now on smartphones,
both for travel and retail
• Tablets dominated mobile transactions a year
ago, but now the majority of mobile transactions
in the US come from smartphones. Tablets have
higher conversion rates, but smartphones
generate more transactions due to significantly
higher traffic.
• This reflects rapid increases in smartphone
usage, improvements in mobile websites, and
increasing consumer familiarity with smartphone
purchasing.
• Impact of Screensize is a frequent topic of
discussion, which we will examine in a future
report.
US, Q4 2014
Smartphones Tablets

Smartphones are particularly strong for fashion and travel purchases
68%
53%
51%
51%
38%
35%
32%
47%
49%
49%
62%
65%
Smartphones
Tablets
• The smartphone, rather than the
tablet, is particularly big in travel,
fashion and luxury.
• In contrast the Home vertical,
which includes home improvement,
gardening and interior design
products, sees both low
smartphone transactions and low
overall mobile transactions.
US, Q4 2014
Smartphone vs. Tablet Share of Mobile Transactions
Travel
Fashion &
Luxury
Mass
Merchants
Health &
Beauty
Sporting
Goods
Home

#4Mobile average order
value is reaching
desktop levels.

Mobile average order value is close to desktop levels for most categories
Mobile Order Values Compared to $100 Spent on the Desktop
• Consumers are comfortable buying on
mobile and mobile order values are
reaching desktop levels.
• Tablet order values are as high as
desktop in most categories and
smartphones are very close.
• Smartphone order values are lower for
travel, home and mass merchants.
US, Q4 2014
Fashion &
Luxury
Sporting Goods
Health &
Beauty
Home
Mass
Merchants
Travel
$87
$102 $100 $99 $100
$92
$89 $86 $82
$66 $64
$57
TabletsSmartphones

#5It’s now important
to reach Android
shoppers.

• Nearly half of US smartphone travel
transactions are now on Android. These
figures are much higher in other countries,
as we show later.
• In retail, Android smartphone is gaining
significance with over 5% of all
transactions, though still smaller than
iPhone.
• Apple continues to dominate on tablets.
iPad generates 11% of retail transactions
vs. 2% from Android tablets.
• Due to the ongoing growth of smartphone
commerce, Android looks set to grow its
share of all retail sales.
Android matters today on smartphones
iPhone and Android Smartphone Share of all eCommerce Transactions
US, Q4 2014
iPhoneAndroid Smartphone
8.7%
10.7%
5.5%
8.5%
Retail
Travel

Global
Mobile Commerce
Trends

49%
45%
41%
28%
27%
26%
24%
24%
21%
20%
10%
Mobile now accounts for 30% of global online retail sales, with Asia
leading the pack
GlobalAverage=30%
Mobile Share of Online Retail Transactions, by Country
• Japan and South Korea are advanced
markets for mobile shopping with over 45%
of online retail transactions coming via
mobile devices.
• UK leads the Western Markets with 41% of
transactions from mobile.
• Emerging markets like Brazil and Russia
have lower share of mobile transactions
than Western markets.
Japan
South Korea
UK
Spain
US
Germany
Italy
Netherlands
France
Russia
Brazil
Asia
Western
Markets
Emerging
Markets

Smartphone shopping is preferred in Asia, while tablets are
important in the West
South Korea
Japan
UK
Spain
US
Italy
Germany
Netherlands
France
Russia
Brazil
Smartphone and Tablet Share of eCommerce Transactions
• Asia leads the way in smartphone
purchases with close to 45% of
eCommerce transactions happening on
smartphones and very little tablet share.
• In the rest of the world, tablet is
significant, and sometimes still
representing more than half of mobile
transactions.
• UK leads the Western markets in share
of both smartphone and tablet
transactions.
• Brazil and Russia have fairly low levels
of smartphone purchasing. However,
share of tablet transactions in Russia is
high and similar to most Western
markets.
Smartphones
Tablets
45%
44%
16%
15%
14%
12%
10%
9%
8%
7%
6%
1%
5%
25%
13%
13%
11%
15%
16%
13%
13%
4%
Asia
Western
Markets
Emerging
Markets

59
68
68
70
100
107
123
136
161
202
Japanese eCommerce sites have mobile conversion rates double the US
Mobile Conversion Rates Compared to the US (Benchmarked at 100)
Japan
South Korea
Germany
UK
Netherlands
US
Spain
France
Brazil
Italy
• Mobile conversion rates in Japan are much
higher than the US. This partly reflects a market
where advertisers have been delivering
transactional mobile websites for longer.
• The improving quality of mobile websites,
greater usage of larger screen smartphones,
and improvements in mobile payment methods
are likely to boost conversion rates across
Western markets.
• If US conversion rates matched Japan, then
mobile commerce would deliver almost half of
all US ecommerce.

Retail
Travel
Android now generates more transactions than the iPhone
in many countries
South Korea
Brazil
Spain
Italy
Germany
Russia
France
Japan
US
UK
86%
74%
71%
60%
61%
71%
56%
55%
59%
52%
48%
40%
44%
45%
43%
43%
39%
44%
36%
36%
Android Share of Smartphone Transactions
• Given South Korea is Samsung’s
home base, it might not be surprising
that Android is responsible for 86% of
retail sales on smartphones.
• Share of eCommerce transactions
from Android is now higher than
iPhone in many countries including
Germany, Italy, Spain, Brazil and
South Korea. This is likely to mean
greater focus on Android app
development in these markets.
• Apple is especially strong in the US,
UK and Japan.

What
will the future
look like?

The future
We see five big trends for 2015:
• Growth in mobile commerce is unstoppable. Asia will soon pass 50% of online transactions via mobile devices,
while Western markets will catch up.
• Smartphones will continue to displace slower-growing tablets. Larger form factor phones are an added
accelerant to an existing trend towards greater use of smartphones for shopping.
• Advertisers will focus heavily on improving their mobile websites. This will lead to dramatic improvements in
conversion rates, especially as mobile payments become more seamless.
• Apple and Android continue to battle it out but both are winners. Total percentage of ecommerce generated
by both will grow at the expense of Microsoft Windows.
• Understanding cross-device behavior will be the biggest challenge and opportunity for marketers in 2015, as
a majority of users going through their buying journey interact with the same site through multiple devices.

About
Criteo
Criteo delivers personalized performance marketing at
an extensive scale. Measuring return on post-click
sales, Criteo makes ROI transparent and easy to
measure. Criteo has over 1,000 employees in 21
offices across the Americas, Europe and Asia-Pacific,
serving over 6,000 advertisers worldwide with direct
relationships with over 8,000 publishers.
Criteo ads reach 994 million unique Internet users
(comScore, September 2014).
For more information, please visit
http://www.criteo.com.
This and future Mobile Commerce reports can be
found at www.criteo.com/resources/mobile-commerce

Appendix:
Country Specific Data

Brazil mobile shopping trends
Smartphone vs. Tablet (% Mobile Transactions)
Share of eCommerce Transactions by Device
Android Smartphone iPhone Android tablet iPad Total Mobile
Retail 4% 2% 1% 3% 10%
Smartphones
Tablets
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
1.7% 1.3%
1.9% 1.7%
3.4%
58%
42%
Retail

France mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
1.7%
1.2% 1.3%
1.9%
2.3%
Retail 4% 4% 3% 9% 21%
Travel 3% 3% 3% 9% 18%
Smartphones
Tablets
40% 38%
60% 62%
Retail Travel

Germany mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
3.4%
2.5%
2.8%
3.8%
4.6%
Retail 6% 4% 5% 11% 26%
Travel 2% 2% 2% 8% 14%
Smartphones
Tablets
40%
30%
60%
70%
Retail Travel

Italy mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
1.5%
1.1%
1.5% 1.7%
2.2%
Retail 7% 5% 3% 8% 24%
Travel 7% 5% 3% 7% 23%
Smartphones
Tablets52% 58%
48% 42%
Retail Travel

Japan mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
5.0% 5.7%
4.3% 4.7%
5.1%
Retail 19% 25% 2% 4% 50%
Travel 12% 15% 1% 4% 32%
Smartphones
Tablets
89% 83%
11% 17%
Retail Travel

Netherlands mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
2.7%
2.1%
1.9%
3.1%
3.3%
Retail 5% 4% 3% 12% 24%
Travel 4% 5% 3% 13% 25%
Smartphones
Tablets
35% 38%
65% 62%
Retail Travel

South Korea mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
4.0% 4.0%
4.1%
3.2%
1.9%
Retail 38% 6% 0.4% 0.4% 45%
Smartphones
Tablets
98%
2%
Retail

Spain mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
1.8%
1.3%
1.7%
2.0%
3.0%
Retail 9% 6% 3% 10% 28%
Travel 7% 3% 3% 7% 20%
Smartphones
Tablets53% 50%
47% 50%
Retail Travel

UK mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
3.1%
2.4%
2.3%
3.2%
4.0%
Retail 6% 10% 4% 21% 41%
Travel 3% 6% 2% 13% 25%
Smartphones
Tablets
39% 38%
61% 62%
Retail Travel

US mobile shopping trends
Mobile
Overall
Android
Smartphone
iPhone Android
Tablet
iPad
2.5%
2.2%
2.0%
3.0% 3.1%
Retail 6% 8% 2% 11% 27%
Travel 9% 11% 2% 8% 30%
Smartphones
Tablets52%
66%
48%
34%
Retail Travel

Global Mobile Commerce - Criteo report Q42014

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