- Category: October 2015 - Mobile Marketing
The performance marketing technology company, Criteo, just released its Q3 2015 State of Mobile Commerce Report, that analyses industry wide trends on a quarterly basis to arm marketers with essential mobile commerce intelligence for engaging consumers and boosting sales.
Criteo’s comprehensive analysis of 1.4 billion online transactions reveals, for instance, that 50% of purchases worldwide now involve multiple devices throughout the consumer buying journey and that smartphones continue to dominate worldwide, showing a higher share of mobile transactions than tablets. In fact, Japan and South Korea see over 40% of eCommerce transactions from smartphones.
According to the report, Southeast Asia ranks high on the list, with a 45% conversion rate to sales from mobile devices, up from 27% in the previous quarter. In fact, Indonesia topped the list in Southeast Asia with a 56% conversion to sales.
“Southeast Asia continues to be one of our fastest growing regions for e- and mCommerce,” 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 optimization 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,” Saito emphasized.
Criteo’s research shows that early investment in apps is also generating significant payback for eCommerce companies that prioritized 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, the report states, besides the following key findings:
Cross-Device is the Norm
Consumers are browsing and buying on all devices—laptops, tablets and smartphones – therefore, 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.
Apps are the next frontier
Brands that prioritize apps as a key revenue driver see profits surge. Ensuring that the app experience is seamless, intuitive and engaging is central to boosting engagement and conversions:
• For retailers who have prioritized 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.
Smartphones are favored
Consumers are more frequently choosing smartphones as the preferred shopping device. While all devices and channels should be optimized, 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.
Global mCommerce is up
Mobile commerce activity is growing worldwide with Japan, the UK and South Korea seeing the most retail eCommerce 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 percent of eCommerce transactions globally with the U.S. in the middle.
• Mobile transactions in Southeast Asia now account for 45 percent of all eCommerce transactions (up from 27 percent in the previous quarter), with Indonesia at 56 percent, and Taiwan at 38 percent.
• Cross-device purchasing is represented by 50 percent of eCommerce transactions worldwide.
“We continue to see the rise of mobile commerce in a cross-device world. Advertising strategies now need to include mobile at the center, 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 maximize sales,” Jonathan Wolf, Chief Product Officer, Criteo, concludes.