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State of Mobile
Commerce.
Q4 2014.
JANUARY 2015
STATE OF MOBILE COMMERCE Q4 2014
Executive Summary.
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.
There are five new mobile shopping
trends eCommerce marketers need
to consider:
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.
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.
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.
1
STATE OF MOBILE COMMERCE Q4 2014
The 5 New US Mobile
Shopping Trends.
#1
Mobile is now about purchasing,
not just researching.
SHOPPERS ARE PURCHASING ON
MOBILES ACROSS ALL CATEGORIES.
Mobile Share of Total eCommerce Transactions
FASHION &
LUXURY
33%
TRAVEL
27%
SPORTING
GOODS
26%
MASS
MERCHANTS
23%
HEALTH &
BEAUTY
20%
HOME
15%
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
0%
10%
20%
30%
low in the Home vertical, which includes home
improvement, gardening and interior design products.
40%
US, Q4 2014
MOBILE CONVERSION RATES ARE HIGH.
Mobile Retail Conversion Rates
Overall, mobile users look at more products
4%
3.0%
3%
2.5%
2.2%
3.1%
As a result, mobile accounts for 27% of
2.0%
2%
than desktop users before they purchase.
all eCommerce transactions in the US, but
mobile traffic share is much higher at 38%.
1%
0
Tablet converts better than smartphone today.
BL
TA
D
RO
D
N
A
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.
2
weaknesses in smartphone-specific site optimization.
ID
IP
A
ET
E
N
O
H
IP
A AN
RT D
PH R O
O ID
N
E
SM
M
O
BI
LE
O
VE
RA
LL
This partly reflects larger screen sizes, but also
Apple and Android devices have
very similar conversion rates.
STATE OF MOBILE COMMERCE Q4 2014
The 5 New US Mobile
Shopping Trends.
#2
Top quartile retailers get almost 40%
of transactions from mobile.
MOBILE SALES CAN BE INCREASED
SIGNIFICANTLY BY ADOPTING BEST PRACTICES.
Mobile Share of eCommerce Transactions, Top vs. Bottom Quartile
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
RETAIL
35%
27%
6%
TRAVEL
39%
30%
9%
quality of the website’s mobile optimization and
the type of products being sold. For example,
0%
fashion and luxury items are purchased more
on mobile than home improvement products.
TOP
20%
30%
AVERAGE
40%
BOTTOM
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 average order value is
reaching desktop levels.
Tablet order values are as high as desktop in most
categories and smartphones are very close.
$57
$92
$66
$87
mobile order values are reaching desktop levels.
$89
$102
Consumers are comfortable buying on mobile and
$64
$100
Mobile Order Values Compared to $100 Spent on the Desktop
$82
$99
MOBILE AVERAGE ORDER VALUE IS CLOSE TO
DESKTOP LEVELS FOR MOST CATEGORIES.
$86
$100
#3
10%
$100
$75
$50
$25
L
AV
E
M
ER
C
H
TR
M
A AS S
N
TS
E
M
O
H
H
EA
BE LTH
AU &
TY
SP
O
G RTI
O N
O G
D
S
$0
SH
LU ION
XU &
RY
travel, home and mass merchants.
FA
Smartphone order values are lower for
SMARTPHONES
US, Q4 2014
TABLETS
3
STATE OF MOBILE COMMERCE Q4 2014
The 5 New US Mobile
Shopping Trends.
#4
Smartphones have overtaken
tablets in mobile transactions.
MAJORITY OF MOBILE TRANSACTIONS
ARE NOW ON SMARTPHONES, BOTH
FOR TRAVEL AND RETAIL.
Smartphone vs. Tablet Share of Mobile Transactions
Tablets dominated mobile transactions a year ago,
but now the majority of mobile transactions in the
US come from smartphones. Tablets have higher
RETAIL
47%
53%
TRAVEL
34%
66%
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
SMARTPHONES
consumer familiarity with smartphone purchasing.
TABLETS
US, Q4 2014
SMARTPHONES ARE PARTICULARLY STRONG
FOR FASHION AND TRAVEL PURCHASES.
Smartphone Share of Mobile Transactions by Vertical
65%
35%
66%
38%
FASHION & LUXURY
49%
51%
49%
51%
47%
53%
32%
68%
HEALTH & BEAUTY
SPORTING GOODS
MASS MERCHANTS
HOME
0%
20%
40%
SMARTPHONES
4
particularly big in travel, fashion and luxury.
In contrast, the Home vertical, which includes
TRAVEL
US, Q4 2014
The smartphone, rather than the tablet, is
60%
80%
TABLETS
100%
home improvement, gardening and interior
design products, sees both low smartphone
transactions and low overall mobile transactions.
STATE OF MOBILE COMMERCE Q4 2014
The 5 New US Mobile
Shopping Trends.
#5
It’s now important to reach Android shoppers.
ANDROID MATTERS TODAY ON SMARTPHONES.
iPhone and Android Smartphone Share
of all eCommerce Transactions
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
RETAIL
5.5%
8.5%
TRAVEL
8.7%
10.7%
significance with more than 5% of all transactions,
though still less significant than iPhone.
0%
2%
4%
ANDROID
Apple continues to dominate on tablets.
IPad generates 11% of retail transactions
6%
8%
10%
IPHONE
US, Q4 2014
vs. 2% from Android tablets.
Due to the ongoing growth of smartphone
commerce, Android looks set to grow
its share of all retail sales.
5
STATE OF MOBILE COMMERCE Q4 2014
Global Mobile Commerce Trends.
MOBILE NOW ACCOUNTS FOR 30% OF GLOBAL
ONLINE RETAIL SALES, WITH ASIA LEADING THE PACK.
Mobile Share of Online Retail Transactions, by Country
Japan and South Korea are advanced markets for
WESTERN MARKETS
49%
mobile shopping with more than 45% of online
SOUTH KOREA
45%
retail transactions coming via mobile devices.
UK
41%
SPAIN
28%
US
27%
GERMANY
26%
GLOBAL AVERAGE = 30%
ASIA
JAPAN
NETHERLANDS
ITALY
FRANCE
EMERGING
MARKETS
RUSSIA
BRAZIL
0%
10%
20%
30%
24%
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.
24%
21%
20%
10%
40%
50%
US, Q4 2014
SMARTPHONE SHOPPING IS PREFERRED IN ASIA,
WHILE TABLETS ARE IMPORTANT IN THE WEST.
Smartphone and Tablet Share of eCommerce Transactions
ASIA
WESTERN MARKETS
EMERGING
MARKETS
45%
1%
JAPAN
44%
5%
UK
16%
25%
SPAIN
15%
13%
US
14%
13%
ITALY
12%
11%
GERMANY
10%
15%
UK leads the Western markets in share of
NETHERLANDS
9%
16%
both smartphone and tablet transactions.
FRANCE
8%
13%
RUSSIA
7%
13%
BRAZIL
6%
4%
0%
10%
20%
SMARTPHONES
US, Q4 2014
6
Asia leads the way in smartphone purchases with
SOUTH KOREA
30%
40%
TABLETS
50%
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.
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.
STATE OF MOBILE COMMERCE Q4 2014
Global Mobile Commerce Trends.
Mobile Conversion Rates Compared to the US (Benchmarked at 100)
JAPANESE ECOMMERCE SITES HAVE MOBILE
CONVERSION RATES DOUBLE THE US.
Mobile conversion rates in Japan are much
202
JAPAN
higher than the US. This partly reflects a
SOUTH KOREA
161
market where advertisers have been delivering
GERMANY
136
transactional mobile websites for longer.
UK
123
NETHERLANDS
107
US
100
SPAIN
70
FRANCE
68
BRAZIL
68
ITALY
59
0
50
100
150
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.
200
US, Q4 2014
ANDROID NOW GENERATES MORE TRANSACTIONS
THAN THE IPHONE IN MANY COUNTRIES.
Android Share of Smartphone Transactions
SOUTH KOREA
86%
74%
BRAZIL
71%
60%
SPAIN
61%
71%
ITALY
56%
55%
GERMANY
59%
52%
RUSSIA
48%
40%
FRANCE
44%
45%
JAPAN
43%
43%
US
39%
44%
UK
36%
36%
0%
25%
RETAIL
50%
75%
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.
100%
TRAVEL
US, Q4 2014
7
STATE OF MOBILE COMMERCE Q4 2014
What will the future look like?
WE SEE FIVE BIG TRENDS FOR 2015:
Growth in mobile commerce is unstoppable. Asia will soon pass 50% of
online transactions via mobile devices, while Western markets will catch up.
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.
8
STATE OF MOBILE COMMERCE Q4 2014
About Criteo.
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.
This and future Mobile Commerce reports can be found at
www.criteo.com/resources/mobile-commerce
Copyright © 2014 Criteo
DECEMBER 2014