State of Mobile Commerce - Criteo 2014

1. State of Mobile
Commerce.
Q4 2014.
JANUARY 2015

3. 1
STATE OF MOBILE COMMERCE Q4 2014
Executive Summary.
There are five new mobile shopping
trends eCommerce marketers need
to consider:
Methodology – Findings in this report 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.
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.
Mobile commerce adoption is far ahead of expectations. Globally, mobile now accounts
for 30% of eCommerce transactions. It is expected that mobile will make up 50% of U.S.
eCommerce transactions quite soon, as conversion rates reach Asian levels.
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.

4. FASHION &
LUXURY
HEALTH &
BEAUTY
TRAVEL
HOME
SPORTING
GOODS
MASS
MERCHANTS
0% 10% 20% 30% 40%
4%
3%
2%
1%
0
M
O
BILE
O
VERA
LL
A
N
D
RO
ID
SM
A
RTPH
O
N
E
A
N
D
RO
ID
TA
BLET
IPH
O
N
E
IPA
D
15%
20%
23%
26%
27%
33%
2.5%
2.2%
2.0%
3.0% 3.1%
US, Q4 2014
2
STATE OF MOBILE COMMERCE 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 is
low in the Home vertical, which includes home
improvement, gardening and interior design products.
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 screen sizes, but also
weaknesses in smartphone-specific site optimization.
Apple and Android devices have
very similar conversion rates.
Mobile Share of Total eCommerce Transactions
Mobile Retail Conversion Rates
The 5 New US Mobile
Shopping Trends.
SHOPPERS ARE PURCHASING ON
MOBILES ACROSS ALL CATEGORIES.
MOBILE CONVERSION RATES ARE HIGH.
#1 Mobile is now about purchasing,
not just researching.
US, Q4 2014
Conversion Rate = (No. of Sales) / (No. of *Users)
*Users include those with more than a single event** on the website.
** 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.

5. $100
$75
$50
$25
$0
FA
SH
IO
N
&
LUXU
RY
SPO
RTIN
G
G
O
O
D
S
H
O
M
E
H
EA
LTH
&
BEAU
TY
M
A
SS
M
ERC
H
A
N
TS
TRAVEL
$89
$102
$86
$100
$82
$99
$66
$87
$64
$100
$57
$92
3
STATE OF MOBILE COMMERCE Q4 2014
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.
MOBILE AVERAGE ORDER VALUE IS CLOSE TO
DESKTOP LEVELS FOR MOST CATEGORIES.
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.
MOBILE SALES CAN BE INCREASED
SIGNIFICANTLY BY ADOPTING BEST PRACTICES.
The 5 New US Mobile
Shopping Trends.
#2 Top quartile retailers get almost 40%
of transactions from mobile.
#3 Mobile average order value is
reaching desktop levels.
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.
Mobile Share of eCommerce Transactions, Top vs. Bottom Quartile
Mobile Order Values Compared to $100 Spent on the Desktop
US, Q4 2014
RETAIL
TRAVEL
0% 10% 20% 30% 40%
TOP AVERAGE BOTTOM
SMARTPHONES TABLETS
35%
27%
6%
39%
30%
9%

6. SMARTPHONES TABLETS
SPORTING GOODS
FASHION & LUXURY
MASS MERCHANTS
HOME
TRAVEL
HEALTH & BEAUTY
0% 20% 40% 60% 80% 100%
SMARTPHONES TABLETS
65%
66%
49%
49%
47%
32%
35%
34%
51%
51%
53%
68%
RETAIL TRAVEL
47% 34%53% 66%
4
STATE OF MOBILE COMMERCE Q4 2014
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.
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.
Smartphone vs. Tablet Share of Mobile Transactions
Smartphone Share of Mobile Transactions by Vertical
The 5 New US Mobile
Shopping Trends.
MAJORITY OF MOBILE TRANSACTIONS
ARE NOW ON SMARTPHONES, BOTH
FOR TRAVEL AND RETAIL.
SMARTPHONES ARE PARTICULARLY STRONG
FOR FASHION AND TRAVEL PURCHASES.
#4 Smartphones have overtaken
tablets in mobile transactions.
US, Q4 2014
US, Q4 2014

7. ANDROID IPHONE
5
STATE OF MOBILE COMMERCE Q4 2014
Nearly half of US smartphone travel transactions
are now on Android. The share of Android
is even higher in many other countries.
In retail, Android smartphone is gaining
significance with more than 5% of all transactions,
though still less significant 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.
The 5 New US Mobile
Shopping Trends.
#5 It’s now important to reach Android shoppers.
US, Q4 2014
iPhone and Android Smartphone Share
of all eCommerce Transactions
RETAIL
TRAVEL
0% 2% 4% 6% 8% 10%
5.5%
8.5%
8.7%
10.7%

8. 6
STATE OF MOBILE COMMERCE Q4 2014
Japan and South Korea are advanced markets for
mobile shopping with more than 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.
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 represents 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.
Mobile Share of Online Retail Transactions, by Country
Smartphone and Tablet Share of eCommerce Transactions
Global Mobile Commerce Trends.
MOBILE NOW ACCOUNTS FOR 30% OF GLOBAL
ONLINE RETAIL SALES, WITH ASIA LEADING THE PACK.
SMARTPHONE SHOPPING IS PREFERRED IN ASIA,
WHILE TABLETS ARE IMPORTANT IN THE WEST.
RUSSIA
0% 10% 20% 30% 40% 50%
FRANCE
ITALY
NETHERLANDS
GERMANY
US
SPAIN
UK
SOUTH KOREA
JAPAN
US, Q4 2014
BRAZIL
ASIAWESTERNMARKETS
EMERGING
MARKETS
SMARTPHONES TABLETS
US, Q4 2014
RUSSIA
0% 10% 20% 30% 40% 50%
FRANCE
NETHERLANDS
GERMANY
ITALY
US
SPAIN
UK
JAPAN
SOUTH KOREA
BRAZIL
ASIAWESTERNMARKETS
EMERGING
MARKETS
49%
45%
41%
28%
27%
26%
24%
24%
21%
20%
10%
GLOBALAVERAGE=30%
45%
1%
44%
5%
16%
25%
15%
13%
14%
13%
12%
11%
10%
15%
9%
16%
8%
13%
7%
13%
6%
4%

9. ITALY
UK
0 50 100 150 200
0% 25% 50% 75% 100%
BRAZIL
US
FRANCE
JAPAN
SPAIN
FRANCE
US
RUSSIA
NETHERLANDS
GERMANY
UK
ITALY
GERMANY
SPAIN
SOUTH KOREA
BRAZIL
JAPAN
SOUTH KOREA
RETAIL TRAVEL
7
STATE OF MOBILE COMMERCE Q4 2014
Global Mobile Commerce Trends.
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 large-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.
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.
Mobile Conversion Rates Compared to the US (Benchmarked at 100)
Android Share of Smartphone Transactions
JAPANESE ECOMMERCE SITES HAVE MOBILE
CONVERSION RATES DOUBLE THE US.
ANDROID NOW GENERATES MORE TRANSACTIONS
THAN THE IPHONE IN MANY COUNTRIES.
US, Q4 2014
US, Q4 2014
202
161
136
123
107
100
70
68
68
59
86%
74%
71%
60%
61%
71%
56%
55%
59%
52%
48%
40%
44%
45%
43%
43%
39%
44%
36%
36%

10. 8
STATE OF MOBILE COMMERCE Q4 2014
What will the future look like?
Growth in mobile commerce is unstoppable. Asia will soon pass 50% of
online transactions via mobile devices, while Western markets will catch up.
WE SEE FIVE BIG TRENDS FOR 2015:
Smartphones will continue to displace slower-growing tablets.
Larger-form-factor phones are an added accelerant to an existing
trend toward 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.

12. 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 www.criteo.com.
Copyright © 2014 Criteo
About Criteo.
DECEMBER 2014STATE OF MOBILE COMMERCE Q4 2014
This and future Mobile Commerce reports can be found at
www.criteo.com/resources/mobile-commerce