Global Commerce Review

Today’s shoppers are active on all browsing environments, they don’t stay in walled gardens,and they’re buying more on-the-go.

Key Findings

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 data, Worldwide and in South East Asia, retail advertisers, Q4 2017.

Optimizing your app lets you connect with more of today's mobile-first shoppers.

Mobile web usage reaches maturity, and smartphone keeps growing

Sales by device, Q4 2016 and Q4 2017, Apps excluded

M O B I L E G R O W T H

Q4 YoY

+31%

-7%

-34%

Source: Criteo data, South East Asia, retail advertisers, Q4 2017, apps excluded.

26.2% 31.3%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Smartphone Tablet Desktop

Q4 ’16 Q4 ’17

Smartphone + Tablet Smartphone + Tablet

Health / Beauty and Fashion / Luxury are the two retail subcategorieswith the highest share of mobile sales.

Sales by device, Q4 2016 and Q4 2017, Apps excluded

M O B I L E G R O W T H

Source: Criteo data, South East Asia, retail advertisers, Q4 2017, apps excluded.

30%

31%

35%

50%

MASS MERCHANT

COMPUTING / HIGH TECH RETAILERS

FASHION / LUXURY

HEALTH / BEAUTY

In South East Asia, retailers with a shopping app generate 71% of transactions on mobile devices.

Mobile is the majority for retailers with a shopping app.

Share of eCommerce Transactions by Environment

A P P O P P O R T U N I T Y

In-App Share of Mobile eCommerce Transactions

31%

46%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Q4 2016

Q4 2017

YoY Increase of the Share of In-App Transactions, Globally

South East AsiaSouth East Asia

Worldwide

YoY Increase48%

Source: Criteo data, Worldwide and South East Asia, retail advertisers, Q4 2017, apps included.

13%

58%

29%Mobile Web

In-App

Desktop

18%

82%

Mobile Web

In-App

In most world regions, mobile now accounts for more than 50% of online transactions, and in-app sales dominate.

A P P O P P O R T U N I T Y

1

2

All retailers combined, apps excluded

Retailers who generate transactions on all environments

Mobile Web

App

Desktop

Middle East & Africa

Latin America

North America

Europe

1 2

1 2

1 2

1 2

APAC

1 2

Source: Criteo data, Worldwide, retail advertisers, Q4 2017

In APAC, retailers with a shopping app now generate 70% of their sales on mobile devices.

A P P O P P O R T U N I T Y

44%

56%

19%

50%

31%

Mobile WebApp Desktop

Share of online transactions by device*

Share of transactions excluding apps*

All retailers*Committed retailers*

APAC

In South East Asia, the conversion rate on shopping apps is more than 5 times higher than on mobile web.

Shopping apps generate higher conversion rates.

x5

A P P O P P O R T U N I T Y

Source: Criteo, South East Asia, Q4 2017. Base: retailers with an app and a mobile website. Conversion rate = buyers / product page viewers

4%Mobile Web

21%App

Conversion Rate

Mon. Tues. Wed. Thurs. Fri. Sat. Sun.Night (0-5)

Early Morning (6-8)

Morning (9-12)

Afternoon (13-17)

Early Evening (18-20)

Evening (21-23)

Desktop usage dominates working hours, while smartphone wins evenings and weekends.

S H O P P I N G M O M E N T S

Sales by Device Type and Hour of the Day Sales by Device Type and Day of the Week

Smartphone Desktop

Source: Criteo data, South East Asia, retail advertisers, Q4 2017.

Combining cross-device data lets you understand the winding shopper journey.

C O M B I N I N G D A T A

26% of desktop transactions in South East Asia are preceded by a click on a mobile device.

26% click on a mobile device.

click on another desktop.of post-click desktop transactions

come from another device.

41%

15%

Source: Criteo data, South East Asia, fashion advertisers, Q4 2017.

Retailers with low mobile sales get more cross-device transactions.

C O M B I N I N G D A T A

Share of cross-device transactions* by prevalence of mobile sales

30%

34% Low share of mobile sales (lower quartile)

Advertiser takeaway: Combining cross-device data helps make up for a below-average share of sales on mobile

+13%

Strong share of mobile sales (upper quartile)

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

100

123

Device

Average order values are significantly higher for matched shoppers: +23% on average.

Combining intent lets you see more shopping dollars per shopper.C O M B I N I N G D A T A

Source: Average order value for matched shoppers, for every $100 spent by unmatched shoppers. Criteo data, South East Asia, retail advertisers, Q4 2017.

Unmatched Shoppers Matched Shoppers

Device Device

Offline sales boost shopper knowledge - and online results.O M N I C H A N N E L M A T T E R S

Omnichannel retailers that can combine their offline and online data can apply over four times as much sales data to optimize their marketing efforts.

Criteo data, Q4 2017, US retail advertisers who combine online and offline sales data.

$29

$29SA L E

Omnichannel customers generate the highest lifetime value.O M N I C H A N N E L M A T T E R S

7%

44% 49%

Omnichannel customers Online only customers Offline only customers

Omnichannel customers generate 27% of all sales, despite representing only 7% of all customers.

27%

24%

49%

Omnichannel customers Online only customers Offline only customers

Share of Customers Share of Sales

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.

MethodologyIndividual browsing and purchasing data from over 5,000 retailers, in more than 80 countries. Q4 2017

For more information on how mobile and app platforms can acquire, convert and re-engage your shoppers in Southeast Asia, contact: marketing.southasia@criteo.com