Copyright © 2014 Criteo
Aligning with Buyers to Maximize Mobile Revenue
Tom St. JohnVP, Business Development
September 2014
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Copyright © 2014 Criteo
Show of Hands: Who’s doing
programmatic mobile??
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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?
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4 things we’ll help answer today
5
?
Are users transacting at scale?
Why is mobile so hard?
Users have moved: where’s the money?
Driving yield & capitalizing: what are my options?
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A unique perspective:Driving sales through personalization & prediction
6
Rightproduct
Rightperson
Righttime
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Personalized advertising
Advertiser data Criteo data
…And we NEED to do it across all channels
7
CRITEO PERFORMANCE ENGINE
EmailDesktopMobile Web
In-App
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For some of the biggest names globally
70% uncappedbudgets96% client
retention6000 clientsworldwide
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90% of consumers use more than one device
to complete a task
But…Shift happens
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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)
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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%
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62% of ad revenues in Q2 2014
Facebook is officially a mobile
company
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So…where’s the money?
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Mobile devices: time spent vs. ad spend
14
$0.07vs.
$0.1225%
All media time spent
10%Of all media revenue
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Maybe it’s because nobody buys anything on mobile devices?
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4 things we’ll help answer today
16
?
Are users transacting at scale?
Why is mobile so hard?
Users have moved: where’s the money?
Driving yield & capitalizing: what are my options?
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We know they’re shopping on mobile
12.21%
14.58%
73.21%
US Ecommerce traffic by platform, Q4 2013
Change from Q4 2012 to Q4 2013
Series1
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6% Tablet
Phone
Desktop
Source: Monetate Q4 Benchmark Report
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They’re buying on mobile too
2012 2013 2014 2015 2016 2017 2018$ 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
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Those clicks aren’t just from fat fingers either
CTR
0.27%
0.43%
CR
9.59%11.89%
Conversion rate CTR
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Mobile e-Comm performance by device
Criteo data (US - August 2014)
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Mobile performance vs the average
Criteo data (US - August 2014)
Based on Sales per impression
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But Complexity has created barriers to spending
22
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1. Complexity: Mobile is four different worlds
23
Mobile Browsing In-App
ANDROIDiOS ANDROIDiOS
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2. Lack of standards
No cookiesNo Flash
No URL for apps to deeplink
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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
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3. Cross-device tracking
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Why is Cross-device important?
27
If you can ID a user, you have a better chance to deliver something relevant
>3 devices / user
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4 things we’ll help answer today
28
?
Are users transacting at
scale?
Why is mobile so hard?
Users have moved: where’s the money?
Driving yield & capitalizing: what are my options?
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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
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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.
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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
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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
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Look for partners you can learn from
33
Audience insights
Your performance vs. the norm
Use programmatic to help direct
sales
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4 things we’ll help answer today
34
?
Are users transacting at
scale?
Why is mobile so hard?
Users have moved: where’s the
money?
Driving yield & capitalizing: what are my options?
Copyright © 2014 Criteo
Real-time performance
advertising has arrived for
mobile
35
Copyright © 2014 Criteo
Thank YouTom St.John@tomsaintjohn