Global Commerce Review

Global Commerce Review

Key Findings. Today s shoppers are active on all browsing environments, they don t stay in walled gardens, and they re buying more on-the-go. Optimizing your app lets you connect with more of today's mobile-first shoppers. Apps account for for retailers who invest in both mobile web and shopping apps. Combining cross-device data lets you understand the entire shopper journey. are preceded by a click on a mobile device. Combining intent data lets you see more shopping dollars per shopper. Shoppers matched on another device spend an per order. Source: Criteo, United States, Q4 2017. Base: retail (see Methodology).

MOBILE GROWTH Mobile web usage reaches maturity, and smartphone keeps growing. Sales by Device, Q4 2016 and Q4 2017, Apps Excluded 60% 50% 40% Q4 16 Smartphone + Tablet Q4 17 Smartphone + Tablet 34.8% 35.5% Q4 YoY 13.2% 30% 20% -26.5% 10% 0% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017-1.1% Smartphone Tablet Desktop Source: Criteo, United States, Q4 2017. Base: retail (see Methodology).

MOBILE GROWTH Sporting Goods and Fashion / Luxury are the two retail subcategories with the highest share of mobile sales. Share of Mobile Sales, Q4 2017, Apps Excluded SPORTING GOODS 44% FASHION / LUXURY 40% HEALTH / BEAUTY 38% FLOWERS AND GIFTS 35% MASS MERCHANT 28% HOME 23% HIGH TECH 20% Source: Criteo, United States, Q4 2017. Base: retail, apps excluded.

Apps account for 66% of mobile sales. Source: Criteo, United States, Q4 2017. Base: retailers with an app and a mobile website.

APP OPPORTUNITY Mobile is the majority for retailers with a shopping app. North America In-App Share of Mobile ecommerce Transactions North America Share of ecommerce Transactions by Environment 34% 33% 23% Mobile Web App Mobile Web App Desktop 66% 44% Source: Criteo, North America, Q4 2017. Base: left: retailers with a mobile website / right: retailers with an app and a mobile website Worldwide YoY Increase of the Share of In-App Transactions, Globally Q4 2017 Q4 2016 46% 31% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 48% YoY Increase Source: Criteo, Worldwide, Q4 2017. Base: retail, apps included.

APP OPPORTUNITY In most world regions, mobile now accounts for more than 50% of online transactions, and in-app sales dominate. Europe North America 1 2 1 2 Latin America APAC 1 2 1 2 1 2 All retailers combined, apps excluded Retailers who generate transactions on all environments Mobile Web App Desktop 1 2 Middle East & Africa Source: Criteo, Q4 2017. Base: left: all retailers, excluding apps / right: retailers with an app and a mobile website.

APP OPPORTUNITY In North America, retailers with a shopping app now generate 67% of their sales on mobile devices. North America Share of Transactions Excluding Apps 36% 33% Share of Online Transactions by Device 23% 65% All retailers Committed retailers 44% App Mobile Web Desktop Source: Criteo, North America, Q4 2017. Base: left: all retailers, excluding apps / right: retailers with an app and a mobile website..

APP OPPORTUNITY Shopping apps generate higher conversion rates. In North America, the conversion rate on shopping apps is more than 3 times higher than on mobile web. 6% Mobile Web x3 Conversion Rate 21% App Source: Criteo, North America, Q4 2017. Base: retailers with an app and a mobile website. Conversion rate = buyers / product page viewers.

SHOPPING MOMENTS Desktop usage dominates working hours, while mobile wins nights and weekends. US Sales by Device Type and Hour of the Day US Sales by Device Type and Day of the Week 140 140 120 120 100 100 Night (0-5) Early Morning (6-8) Morning (9-12) Afternoon (13-17) Early Evening (18-20) Evening (21-23) Mon. Tues. Wed. Thurs. Fri. Sat. Sun. Smartphone Tablet Desktop Source: Criteo, United States, Q4 2017. Base: index, 100 = daily average. Retailers, excluding apps.

COMBINING DATA Combining cross-device data lets you understand the winding shopper journey. 26% of all desktop transactions in the US are preceded by a click on a mobile device. 26% click on a mobile device. 41% 15% click on another desktop. of post-click desktop transactions come from another device. Source: Criteo, United States, Q4 2017. Base: all retailers.

COMBINING DATA Retailers with low mobile sales get more crossdevice transactions. Share of cross-device transactions* by prevalence of mobile sales 34% Low share of mobile sales (lower quartile) +13% 30% Strong share of mobile sales (upper quartile) Advertiser takeaway: Combining cross-device data helps make up for a below-average share of sales on mobile Source: Criteo, Worldwide, Q4 2017. Base: retail, post-click transactions, all devices combined, *Share of transactions preceded by at least one click on a different device than the one used for purchasing.

COMBINING DATA Combining intent lets you see more shopping dollars per shopper. Average order values are significantly higher for matched shoppers: +17% on average. Fashion / Luxury 134 Health / Beauty 113 Computing / High Tech 111 Mass Merchant 111 Culture / Media / Tickets 108 Sporting Goods 103 Flowers & Gifts 101 Source: Criteo, United States, Q4 2017. Base: all retailers, Average order value for matched shoppers by retail category, for every $100 spent by unmatched shoppers.

OMNICHANNEL MATTERS Offline sales boost shopper knowledge - and online results. Omnichannel retailers that can combine their offline and online data can apply over four times as much sales data to optimize their marketing efforts. SALE $29 $29 Source: Criteo, United States, Q4 2017. Base: retailers combining online and offline sales data.

OMNICHANNEL MATTERS Omnichannel customers generate the highest lifetime value. Omnichannel customers generate 27% of all sales, despite representing only 7% of all customers. Share of Customers Share of Sales 7% 27% 49% 44% 49% 24% Omnichannel customers Online only customers Offline only customers Omnichannel customers Online only customers Offline only customers Source: Criteo, Worldwide, November 2017. Base: retailers combining online and offline sales data.

For the latest on how shoppers are browsing and buying around the globe, check out our interactive world map. Methodology Individual browsing and purchasing data from over 5,000 retailers, in more than 80 countries. Q4 2017 About Criteo To learn more about how the Criteo Commerce Marketing Ecosystem drives sales and profits for thousands of brands, retailers, and publishers worldwide, visit criteo.com/about