1. State of Mobile Commerce
Q4 2014

2. Executive Summary
Mobile commerce adoption is far ahead of expectations. Globally, mobile now accounts for 30% of eCommerce transactions. Mobile will be 50% of US 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.
Yes, you will buy a designer handbag from your phone: 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.
These trends come from Criteo’s first quarterly State of Mobile Commerce Report, based on its unique pool of online shopping data covering more than a billion transactions totaling over $130Bn of annual sales.
Methodology – This reports findings 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.

3. The 5 New US Mobile Shopping Trends
Copyright © 2014 Criteo

4. #1
Mobile is now about purchasing, not just researching.

5. Mobile Retail Conversion Rates
Mobile conversion rates are high
Mobile Retail Conversion Rates
Overall, mobile users look at more products than desktop users before they purchase. As a result, mobile accounts for 27% of all eCommerce transactions in the US, but mobile traffic share is much higher at 38%.
Tablet converts better than smartphone today. This partly reflects larger screensizes, but also weaknesses in smartphone-specific site optimization.
Apple and Android devices have very similar conversion rates.
3.1%
3.0%
2.5%
2.2%
2.0%
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad
US, Q4 2014
Conversion Rate = (No. of Sales) / (No. of *Users)
* Users include those with more than a single **event on the websites
** 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.

6. Mobile Share of Total eCommerce Transactions
Shoppers are purchasing on mobiles across all categories
Mobile Share of Total eCommerce Transactions
Fashion & Luxury
33%
27%
26%
23%
20%
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 are low in the Home vertical, which includes home improvement, gardening and interior design products.
Travel
Sporting Goods
Mass Merchants
Health & Beauty
Home
US, Q4 2014

7. #2
Top quartile retailers generate almost 40% of transactions from mobile.

8. Mobile Share of eCommerce Transactions, Top vs. Bottom Quartile
Significant opportunity to increase mobile sales by adopting best practices
Mobile Share of eCommerce Transactions, Top vs. Bottom Quartile
30%
27%
35% 9% 6%
Travel
Top Quartile
Average
Bottom Quartile
Retail
39%
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 quality of the website’s mobile optimization, and the type of products being sold. For example, fashion and luxury items are purchased more on mobile than home improvement products.
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.

9. #3
Smartphones have overtaken tablets in mobile transactions.

10. Smartphone vs. Tablet Share of 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 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 consumer familiarity with smartphone purchasing.
Impact of Screensize is a frequent topic of discussion, which we will examine in a future report.
Smartphones
Tablets
US, Q4 2014

11. Smartphone vs. Tablet Share of Mobile Transactions
Smartphones are particularly strong for fashion and travel purchases
Smartphone vs. Tablet Share of Mobile Transactions
65%
35%
Fashion & Luxury
The smartphone, rather than the tablet, is particularly big in travel, fashion and luxury.
In contrast the Home vertical, which includes home improvement, gardening and interior design products, sees both low smartphone transactions and low overall mobile transactions.
62%
38%
Travel
49%
51%
Health & Beauty
Smartphones
Tablets
49%
51%
Sporting Goods
47%
53%
Mass Merchants
32%
68%
Home
US, Q4 2014

12. #4
Mobile average order value is reaching desktop levels.

13. Mobile Order Values Compared to $100 Spent on the Desktop
Mobile average order value is close to desktop levels for most categories
Mobile Order Values Compared to $100 Spent on the Desktop
Fashion & Luxury
Sporting Goods
Health & Beauty
Home
Mass Merchants
Travel
$87
$102
$100
$99
$92
$89
$86
$82
$66
$64
$57
Tablets
Smartphones
Consumers are comfortable buying on mobile and mobile order values are reaching desktop levels.
Tablet order values are as high as desktop in most categories and smartphones are very close.
Smartphone order values are lower for travel, home and mass merchants.
US, Q4 2014

14. #5
It’s now important to reach Android shoppers.

15. iPhone and Android Smartphone Share of all eCommerce Transactions
Android matters today on smartphones
iPhone and Android Smartphone Share of all eCommerce Transactions
iPhone
Android Smartphone
8.7%
10.7%
5.5%
8.5%
Retail
Travel
Nearly half of US smartphone travel transactions are now on Android. These figures are much higher in other countries, as we show later.
In retail, Android smartphone is gaining significance with over 5% of all transactions, though still smaller than iPhone.
Apple continues to dominate on tablets. iPad generates 11% of retail transactions vs. 2% from Android tablets.
Due to the ongoing growth of smartphone commerce, Android looks set to grow its share of all retail sales.
US, Q4 2014
Copyright © 2014 Criteo

16. Mobile Commerce Trends
Global
Mobile Commerce Trends
Copyright © 2014 Criteo

17. Mobile Share of Online Retail Transactions, by Country
Mobile now accounts for 30% of global online retail sales, with Asia
leading the pack
Mobile Share of Online Retail Transactions, by Country
Asia
Japan
South Korea UK
Spain US
Germany
Italy
Netherlands
France
Russia
Brazil
Global Average = 30%
Japan and South Korea are advanced markets for mobile shopping with over 45% of online retail transactions coming via mobile devices.
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.
Western Markets
Emerging Markets

18. Smartphone and Tablet Share of eCommerce Transactions
Smartphone shopping is preferred in Asia, while tablets are important in the West
Smartphone and Tablet Share of eCommerce Transactions
South Korea
Japan UK
Spain US
Italy
Germany
Netherlands
France
Russia
Brazil
45%
44%
16%
15%
14%
12%
10% 9% 8% 7% 6% 1% 5%
25%
13%
11% 4%
Asia leads the way in smartphone purchases with 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 representing more than half of mobile transactions.
UK leads the Western markets in share of both smartphone and tablet 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.
Asia
Western Markets
Smartphones
Tablets
Emerging Markets

19. Mobile Conversion Rates Compared to the US (Benchmarked at 100)
Japanese eCommerce sites have mobile conversion rates double the US
Mobile Conversion Rates Compared to the US (Benchmarked at 100)
Japan
South Korea
Germany UK
Netherlands US
Spain
France
Brazil
Italy
Mobile conversion rates in Japan are much higher than the US. This partly reflects a market where advertisers have been delivering transactional mobile websites for longer.
The improving quality of mobile websites, greater usage of larger 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.

20. Android Share of Smartphone Transactions
Android now generates more transactions than the iPhone
in many countries
Android Share of Smartphone Transactions
South Korea
Brazil
Spain
Italy
Germany
Russia
France
Japan US UK
86%
74%
71%
60%
61%
56%
55%
59%
52%
48%
40%
44%
45%
43%
39%
36%
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.
Retail
Travel

21. What will the future look like?
Copyright © 2014 Criteo

22. The future 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 towards 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.

23. 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
About Criteo
This and future Mobile Commerce reports can be found at

24. Appendix: Country Specific Data

25. Brazil mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 4% 2% 1% 3%
10%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad
1.7%
1.3%
1.9%
3.4%
Tablets
Smartphones

26. France mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 4% 3% 9%
21%
Travel
18%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
2.3%
1.7%
1.9%
1.2%
1.3%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

27. Germany mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 6% 4% 5%
11%
26%
Travel 2% 8%
14%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
4.6%
3.8%
3.4%
2.8%
2.5%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

28. Italy mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 7% 5% 3% 8%
24%
Travel
23%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
2.2%
1.5%
1.5%
1.7%
1.1%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

29. Japan mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail
19%
25% 2% 4%
50%
Travel
12%
15% 1%
32%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
5.0%
5.7%
5.1%
4.3%
4.7%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

30. Netherlands mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 5% 4% 3%
12%
24%
Travel
13%
25%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
3.3%
3.1%
2.7%
2.1%
1.9%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

31. South Korea mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail
38% 6%
0.4%
45%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
4.1%
4.0%
4.0%
3.2%
1.9%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

32. Spain mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 9% 6% 3%
10%
28%
Travel 7%
20%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
3.0%
2.0%
1.8%
1.7%
1.3%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

33. UK mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 6%
10% 4%
21%
41%
Travel 3% 2%
13%
25%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
4.0%
3.1%
3.2%
2.4%
2.3%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad

34. US mobile shopping trends
Share of eCommerce Transactions by Device
Android Smartphone
iPhone
Android tablet
iPad
Total Mobile
Retail 6% 8% 2%
11%
27%
Travel 9%
30%
Smartphone vs. Tablet (% Mobile Transactions)
Mobile Retail Conversion Rates
3.1%
3.0%
2.5%
2.2%
2.0%
Tablets
Smartphones
Mobile Overall
Android Smartphone
iPhone
Android Tablet
iPad