Global Commerce Review

United States, Q1 2018

2 •

Today's shoppers are active across all browsing environments, and they're buying more on-the-go.

Key Findings

Source: Criteo, United States, Q1 2018. Base: retail (see Methodology).

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

Apps account for 70% of mobile sales for retailers who invest in both mobile web and shopping apps.

The conversion rate on shopping apps is more than 3 times higher than on mobile web.

Omnichannel retailers can apply over 4 times as much sales data to optimize their marketing efforts.

Shopping apps generate higher conversion rates.

Using offline sales data can boost online results.

APP

3 •

Mobile web usage reaches maturity, and smartphone keeps growing.

Mobile Growth

Source: Criteo, United States, Q1 2018. Base: retail (see Methodology).

Sales by Device, Q1 2017 and Q1 2018, Apps Excluded

34%38%

0%

10%

20%

30%

40%

50%

60%

Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Smartphone Tablet Desktop

22.5%

Q1 Year-Over-Year

-13% -7%

Q1 ’17Q1 ’18

Smartphone + TabletSmartphone + Tablet

4 •

Health / Beauty and Sporting Goods are the two retail subcategorieswith the highest share of mobile sales.

Mobile Growth

Source: Criteo, United States, Q1 2018. Base: retail, apps excluded.

Share of Mobile Sales, Q1 2018, Apps Excluded

29%

30%

37%

43%

43%

44%

MASS MERCHANT

HOME

FLOWERS AND GIFTS

FASHION / LUXURY

SPORTING GOODS

HEALTH / BEAUTY

5 •

Apps account for over 2/3 of mobile sales.70%

6 •

Mobile is the majority for retailers with a shopping app.App Opportunity

Source: Criteo, United States, Q1 2018. Base: retail, apps excluded.

North America North America

36%

44%

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

Q1 2017

Q1 2018

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

Worldwide

YoY Increase22%

20%

47%

33%

Mobile Web

App

Desktop

30%

70%

Mobile Web

App

In-App Share of Mobile eCommerce Transactions Share of eCommerce Transactions by Environment

7 •

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

App Opportunity

Source: Criteo, Q1 2018. Base: left: all retailers, excluding apps / right: retailers with an app and a mobile website.

Middle East & Africa

Latin America

North America

Europe

1 2

1 2

1 2

1 2

APAC

1 2

1

2

All retailers combined, apps excluded

Retailers who generate transactions on all environments

Mobile Web

App

Desktop

8 •

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

App Opportunity

Source: Criteo, North America, Q1 2018. Base: left: all retailers, excluding apps / right: retailers with an app and a mobile website. .

North America

Mobile WebApp Desktop

39%

61%

Share of Transactions Excluding Apps

All retailers

20%

47%

33%

Share of Online Transactions by Device

Committed retailers

9 • Source: Criteo, North America, Q1 2018.

Shopping apps generate higher conversion rates.

App Opportunity

In North America, the conversion rate on shopping apps is more than 3 times higher than on mobile web.

3x6%

Mobile Web

20%App

Conversion Rate

10%Desktop

Base: retailers with an app and a mobile website. Conversion rate = buyers / product page viewers.

10 •

Desktop usage dominates working hours, while mobile wins nights and weekends.

Shopping Moments

Source: Criteo, United States, Q1 2018.

US Sales by Device Type and Hour of the Day

Night(0-5)

Early Morning(6-8)

Morning(9-12)

Afternoon(13-17)

Early Evening(18-20)

Mon. Tues. Wed. Thurs. Fri. Sat. Sun.

TabletSmartphone Desktop

100

120

140

100

120

140

US Sales by Device Type and Hour of the Day

Base: index, 100 = daily average. Retailers, excluding apps.

11 •

Offline sales boost shopper knowledge - and online results.

Omnichannel Matters

Source: Criteo, United States, Q1 2018.

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

$29

$29SA L E

Base: retailers combining online and offline sales data.

12 •

Omnichannel customers generate the highest lifetime value.

Omnichannel Matters

Source: Criteo, United States, Q1 2018.

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

7%

44%49%

Omnichannel customersOnline only customersOffline only customers

27%

24%

49%

Omnichannel customersOnline only customersOffline only customers

Share of Customers Share of Sales

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. Q1 2018

About CriteoTo learn more about how the Criteo Commerce Marketing Ecosystem drives sales and profits for thousands of brands, retailers, and publishers worldwide, visit criteo.com/about