Mobile is quickly becoming an importance interface for shopping as mcommerce activity is growing worldwide with Japan, the UK and South Korea seeing the most retail ecommerce transactions, according to a Criteo report. Mobile commerce now represents 35 per cent of ecommerce transactions globally with the US in the middle.
Of the 1.4 billion online transactions that Criteo tracked, four in 10 purchases in the US, and 50 per cent worldwide, now involve multiple devices throughout the consumer buying journey.
Southeast Asia has a 45 per cent conversion rate of sales from mobile devices, up 27 per cent from the previous quarter, with Indonesia at 56 per cent, and Taiwan at 38 per cent. More than half (54 per cent) of the traffic was also generated from mobile devices. Indonesia also topped the list in Southeast Asia with a 56 per cent conversion to sales.
Early investment in apps has brought about a significant payback for ecommerce companies that prioritised this platform. In the retail category, brands that make their app experience a priority generate nearly 60 per cent of mobile revenue from the app, up from 50 per cent in Q2, and heavily outperforming desktops. For travel brands that make their apps a priority, about 50 per cent of mobile revenue comes from the app.
The report highlights that the conversion lift on apps is considerably higher as they convert at a rate of 3.7 times higher than mobile browsers and two times more than desktop in terms of adding to basket and buying.
“We continue to see the rise of mobile commerce in a cross-device world. Advertising strategies now need to include mobile at the centre if companies want to engage today’s savvy consumer. Marketers need to pay close attention to the consumer’s purchasing journey if they want to attract buyers and maximise sales,” said Jonathan Wolf, Chief Product Officer, Criteo.
Cross-device is becoming the norm for consumers as they are browsing and buying on all devices—laptops, tablets and smartphones. Cross-device purchasing is represented by 50 per cent of ecommerce transactions worldwide.
For purchases completed on laptops and desktops, 39 per cent of buyers use at least one additional device during the shopping process. On mobile, 43 per cent of smartphone buyers and 47 per cent of tablet buyers use an additional device. Cross-device purchasers are 20 per cent more likely to use their mobile device to complete a transaction, according to the report.
“Southeast Asia continues to be one of our fastest growing regions for e- and mcommerce. Southeast Asia now ranks much higher above the global average of 35 per cent, and sits in the same company as advanced mobile countries like Japan and the UK,” said Yuko Saito, Managing Director, Criteo Southeast Asia.
In terms of devices, consumers are more frequently choosing smartphones as the preferred shopping device. According to the report, smartphones generate 56 per cent of mobile transactions and drive 64 per cent of mobile purchases for top quartile retailers. Conversion rate is also two times better on smartphones for top quartile retailers than average retailers.
“It is clear that customers are now extremely savvy and are open to browsing and buying on their mobile devices, and this is not just limited to mature markets. Mobile optimization is now a must-have, not nice-to-have for brands, and we see apps as the next growth driver and a key area of focus for marketers,” said Ms Saito.