aligning with buyers to maximize mobile revenue presentation by criteo at dps, 9/19/14

Copyright © 2014 Criteo

Aligning with Buyers to Maximize Mobile Revenue

Tom St. JohnVP, Business Development

September 2014


Show of Hands: Who’s doing

programmatic mobile??


4 things we’ll help answer today

4

?

Are users transacting at scale?

Why is mobile so hard?

Users have moved: where’s the money?

Driving yield & capitalizing: what are my options?



5

?






A unique perspective:Driving sales through personalization & prediction

6

Rightproduct

Rightperson

Righttime


Personalized advertising

Advertiser data Criteo data

…And we NEED to do it across all channels

7

CRITEO PERFORMANCE ENGINE

EmailDesktopMobile Web

In-App

Copyright © 2014 Criteo 8

For some of the biggest names globally

70% uncappedbudgets96% client

retention6000 clientsworldwide


90% of consumers use more than one device

to complete a task

But…Shift happens


SOURCE : Total U.S. Internet Usage in Minutes in may (Billions), Comscore MMX Multi-Platform, August 2013 OR SIT AMET

50%

40%

10%

Shift Happens:Total time spent online

10

Tablet

Smartphone

Desktop

Platform Minutes (billions)


Shift Happens: Mobile as a % of worldwide Internet traffic

Source: StatCounterGlobal Stats – 05/2014

Mobile web traffic continues to grow at more than 1.5x per year

2008-12 2009-12 2010-12 2011-12 2012-12 2013-120.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


62% of ad revenues in Q2 2014

Facebook is officially a mobile

company


So…where’s the money?


Mobile devices: time spent vs. ad spend

14

$0.07vs.

$0.1225%

All media time spent

10%Of all media revenue

Copyright © 2014 CriteoCopyright © 2014 Criteo

Maybe it’s because nobody buys anything on mobile devices?



16

?






We know they’re shopping on mobile

12.21%

14.58%

73.21%

US Ecommerce traffic by platform, Q4 2013

Change from Q4 2012 to Q4 2013

Series1

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6% Tablet

Phone

Desktop

Source: Monetate Q4 Benchmark Report


They’re buying on mobile too

2012 2013 2014 2015 2016 2017 2018$ 0 .0 0

$ 5 0 .0 0

$ 1 0 0 .0 0

$ 1 5 0 .0 0

$ 2 0 0 .0 0

$ 2 5 0 .0 0

0 .0 %

1 0 .0 %

2 0 .0 %

3 0 .0 %

4 0 .0 %

5 0 .0 %

6 0 .0 %

7 0 .0 %

8 0 .0 %

9 0 .0 %

1 0 0 .0 %

9.3% 14.6%18.7%

22.6% 26.2%

27.9% 29.6%

92.9%

78.4%

43.5% 34.9%27.9%

17.4% 16.1%

US B2C Mcommerce Sales, 2012-2018

$32.78

$58.50

$83.93

$113.18

144.77

169.97

197.38

B2C mcommerce sales

% of B2C ecommerce sales

% change

Billions, % change and 5 of B2C ecommerce sales

Source: emarketer.com, April 2014

Nearly 20% of ecommerce sales in 2014


Those clicks aren’t just from fat fingers either

CTR

0.27%

0.43%

CR

9.59%11.89%

Conversion rate CTR


Mobile e-Comm performance by device

Criteo data (US - August 2014)


Mobile performance vs the average

Criteo data (US - August 2014)

Based on Sales per impression


But Complexity has created barriers to spending

22


1. Complexity: Mobile is four different worlds

23

Mobile Browsing In-App

ANDROIDiOS ANDROIDiOS


2. Lack of standards

No cookiesNo Flash

No URL for apps to deeplink


iPad and iOS dominate e-commerce traffic

Ecommerce website traffic by mobile platform

0%

10%

20%

30%

40%

50%

60%

70%

90%

100%

80%

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Source: Monetate and BI IntelligenceiPad iPhone Android Phone Android Tablet Other


3. Cross-device tracking


Why is Cross-device important?

27

If you can ID a user, you have a better chance to deliver something relevant

>3 devices / user



28

?

Are users transacting at

scale?





Capitalizing on the Opportunity

Think holistically, but be deliberate

1

Use mobile as a test bed

2

Look for partners you

can learn from

3


Think holistically, butDeaverage everything

Start withsegmenting

DeaverageVerb (transitive)To apply different prices for a commodity to different customers (especially by location) instead of applying an average price to all.


SUNDAY MONDAY TUESDAY WEDNESDAYTHURSDAY FRIDAY SATURDAY

116

96

90

80

Average = 100Purchases comingfrom iPads are 16% more likely to happen on a Sunday

10% fewer sales are generated fromPCs on Sundays.

Source : Criteo Q1 Data

+16%

-10%

IPad PC

Think holistically, butOptimize to days of the week


Use mobile as a test bed• Start simple• Find demand from alternative channels / reduce conflict• Look at international opportunities

Use mobile as a test bed

Start simpleFind demand

from alternative channels

Look at international opportunities


Look for partners you can learn from

33

Audience insights

Your performance vs. the norm

Use programmatic to help direct

sales



34

?

Are users transacting at

scale?


Users have moved: where’s the

money?



Real-time performance

advertising has arrived for

mobile

35


Thank YouTom St.John@tomsaintjohn

aligning with buyers to maximize mobile revenue presentation by criteo at dps, 9/19/14

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