20 October 2015

Brands optimising apps for mobile see more sales

Source: Criteo website, Q3 2015 State Of Mobile Commerce report

Criteo, the performance marketing technology company, has released its Q3 2015 State of Mobile Commerce report. This quarterly analysis of industry-wide trends arms marketers with essential mobile commerce intelligence for engaging consumers and boosting sales. Criteo’s comprehensive analysis of 1.4 billion online transactions reveals that 50% of purchases worldwide, now involve multiple devices throughout the consumer buying journey.

Southeast Asia also ranked high on the list, with a 45% conversion rate to sales from their mobile devices, up from 27% in the previous quarter. More than half (54%) of the traffic was also generated from mobile devices. Indonesia topped the list in Southeast Asia, with a 56% conversion to sales.

Criteo’s research shows that early investment in apps is also generating significant payback for e-commerce companies that prioritised this platform. In the retail category, brands that make their app experience a priority generate nearly 60% of mobile revenue from the app, up from 50% in Q2, and heavily outperforming desktops. For travel brands that make their apps a priority, about 50% of mobile revenue comes from the app.

“We continue to see the rise of mobile commerce in a cross-device world. Advertising strategies now need to include mobile at the centre if companies want to engage today’s savvy consumer. Marketers need to pay close attention to the consumer’s purchasing journey if they want to attract buyers and maximise sales,” said Jonathan Wolf, Chief Product Officer, Criteo.

“Southeast Asia continues to be one of our fastest growing regions for e- and m-commerce,” said Yuko Saito, Managing Director, Criteo Southeast Asia. “Southeast Asia now ranks much higher above the global average of 35%, and sits in the same company as advanced mobile countries like Japan and the UK.”

“It is clear that customers are now extremely savvy and are open to browsing and buying on their mobile devices, and this is not just limited to mature markets. Mobile optimisation is now a must-have, not nice-to-have for brands, and we see apps as the next growth driver and a key area of focus for marketers,” said Saito.

Consumers are browsing and buying on all devices—laptops, tablets and smartphones. For brands to succeed, they need to invest in mobile and allocate digital spend strategically:

· For purchases completed on laptops and desktops, 39% of buyers use at least one additional device during the shopping process.

· On mobile, 43% of smartphone buyers and 47% of tablet buyers use an additional device.

· Cross-device purchasers are 20% more likely to use their mobile device to complete a transaction.

Ensuring that the app experience is seamless, intuitive and engaging is central to boosting engagement and conversions:

· For retailers who have prioritised their app experience, 58% of all mobile revenue is generated through the app; travel is at 49%.

· Apps convert at a rate of 3.7 times higher than mobile browsers and two times more than desktop in terms of adding to basket and buying.

Consumers are choosing smartphones as the preferred shopping device more frequently. While all devices and channels should be optimised, smartphones are a key vehicle for brands:

· Smartphones generate 56% of mobile transactions and drive 64% of mobile purchases for top quartile retailers.

· Smartphone conversion rate is two times better for top quartile retailers than average retailers.

Mobile commerce activity is growing worldwide with Japan and South Korea seeing some of the highest volumes of e-commerce transactions. Global brands need to be tuned into how different consumer segments behave in order to deliver the best cross-device and mobile experiences:

· Mobile commerce now represents 35% of e-commerce transactions globally. Mobile transactions in Southeast Asia now account for 45% of all e-commerce transactions (up from 27% in the previous quarter), with Indonesia at 56%, and Taiwan at 38%. 

· Cross-device purchasing is represented by 50% of e-commerce transactions worldwide.


Read the TechTrade Asia blog post on the Criteo Q2 2015 State of Mobile Commerce report