Criteo Reinforces the Power of Mobile Devices and Omnichannel Strategies in Driving Sales
Consumers In-App Shopping Habits Surge: Criteo’s Q4 Global Commerce Study Reveals Shopping Apps Generate 67 Percent of All E-Commerce Sales on Mobile Devices
In their latest report, the leading commerce marketing technology company — Criteo, has revealed that global advertisers saw almost 50 percent YoY increase of in-app transactions, climbing to 46 percent in Q4 2017. Criteo released the findings from its Global Commerce Review for Q4 of 2017 that analyzed shoppers’ activities, behaviors, and preferences across all devices and browsing environments.
The report highlights a growing reliance on apps among shoppers, reinforces the “mobile-first” mindset, and will help inform omnichannel commerce marketing strategies worldwide.
Currently, Criteo is building the highest performing and open commerce marketing ecosystem to drive profits and sales for retailers and brands.
At the time of this announcement, Jonathan Opdyke, Chief Strategy Officer, Criteo, said, “As smartphone usage continues to soar, increased app adoption and mobile browsing have resulted in interesting omnichannel shopping patterns.”
Jonathan added, “Our latest report illustrates the power of shopping apps to drive significantly higher conversion rates and sales on mobile devices, and also confirms that omnichannel customers provide the highest lifetime value (LTV). Retailers and brands can take advantage of these trends to optimize their marketing efforts, allowing them to more effectively connect with shoppers to yield the strongest commerce results possible.”
App Opportunity on Mobile Devices
When retailers prioritize app optimization in addition to the mobile web, the performance gains are substantial.
- Globally, advertisers saw nearly a 50 percent year-over-year increase of in-app transactions, climbing to 46 percent in the fourth quarter of 2017.
- In North America, retailers with a shopping app now generate 67 percent of all e-commerce sales on mobile devices. In-app also accounts for 66 percent of mobile transactions for retailers who generate sales on both mobile web and in-app.
- The conversion rate for shopping apps was 21%, more than three times higher than the standard 6% conversion rate seen on the mobile web.
Mobile web usage has reached a maturity point, but shoppers rarely stay in one place for long, moving in and out of walled gardens, and are still buying on-the-go, with varying levels of frequency, on all connected devices.
- Smartphone transactions in the US increased by 13.2 percent over the fourth quarter of 2016 (App excluded). Tablet usage declined, with 26.5 percent fewer transactions compared to the year prior. Desktop usage continues to dominate during work hours but saw a minor slip year-over-year with a 1.1 percent transaction decline.
- Retail categories with the highest share of mobile sales include sporting goods at (44 percent), fashion/luxury (40 percent), and health/beauty (38 percent).
- Seasonality drove a slight dip in the number of desktop transactions preceded by a mobile click, as consumers are more active on mobile devices in the summer. In the fourth quarter, 26 percent of all US desktop transactions were preceded by a mobile device click, down 4 percent from the previous quarter.
Omnichannel strategies help educate shoppers during their winding journey, which in turn drives positive online results.
- Omnichannel customers offer the highest lifetime value to brands and retailers, generating 27 percent of all sales, despite representing only 7 percent of all customers.
Shopping Moments on Mobile Devices
Consumers continue to trade desktop for mobile, and back again, depending on the time and day they are shopping online.
- Retailers looking to target the busy working customer cannot ignore the dominance of desktop during business hours, especially between 9 a.m. – noon.
- Alternatively, optimizing for smartphone and tablet targeting remains critical in the evenings and throughout the weekend.
Cross-device data combinations can help retailers make up lost ground from lower shares of mobile sales.
- Combining intent also unlocks the ability to capture more dollars per shopper, as average order values are significantly higher—up to 17 percent on average—for matched shoppers. This trend is especially apparent in the fashion/luxury, health/beauty, and high-tech categories.
The Global Commerce Review analyzed individual browsing and purchasing data from over 5,000 retailers, in more than 80 countries during Q4 2017.