Travellers and shoppers prefer apps to browsers

By Charlotte Turner |

Criteo-report-leadCriteo’s analysis of shopping data from Q4 2015 demonstrates that mobile is an established channel for retail transactions and that apps have overtaken mobile browsers for the very first time as a vehicle for purchasing. 

Interestingly, the number of mobile transactions carried out on travel apps (58%) outstripped those made via travel mobile browsers in this period (42%). The figure rose from 42% in Q2, to 49% in Q3 and the balance finally tipped in Q4 to 58% of mobile transitions. This should be of interest to travel retailers as it is indicative of how travellers are purchasing.

Having a fully functioning website may no longer be enough, as travellers increasingly prefer to make transactions via applications instead. Thankfully these are relatively easy to set up in tandem with an existing retail website.

 

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Continuing the trend from past quarters, the overall share of app transactions consists of half or more of all transactions.

“Nearly four-in-ten transactions occurred on multiple devices and were completed on a mobile device almost a third of the time,” says Criteo. “Dedicated shopping apps dwarf the mobile web at all points on the path to purchase, from browsing products to the sale itself.

“Retailers whose apps focus on providing shoppers relevant and useful products and remove barriers to purchase drive a higher share of transactions than mobile web.”

Continuing the trend from past quarters, the overall share of app transactions consists of half or more of all transactions.

 

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Japan, UK and South Korea make up the top three countries ranked by mobile share of transactions, globally. Advanced mobile countries remained constant while others are catching up.

Due to the native environment and additional control of the purchase path, retailers see a higher conversion rate on their apps than both mobile web and desktop.

“Technologies like deep linking and mobile re-targeting can help retailers drive sustained engagement and transactions in their apps,” says Criteo.

“Not only do apps convert a higher percentage of your customers, they also bring in more revenue per transaction. Controlling the environment allows retailers to give customers engaging product content (i.e. videos, images, reviews) targeted to things like buying history and browsing behavior. This is more effective than generic targeting signals found on mobile web and desktop sites.”

In terms of overall transactions made on mobiles – whether through apps or browsers – Japan, UK and South Korea make up the top three countries ranked by mobile share of transactions, globally. Advanced mobile countries remained constant while others are catching up.

The biggest gainers were UK, which passed South Korea for second, and Australia, which leapfrogged five countries to land in fourth.The US remains in the middle of the pack, but trails the global average along with Germany, France and Spain.

 

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Tablet transactions were the most likely to have multiple devices in the path to purchase, indicating that tablet buyers are most likely browsing on devices like desktops and smartphones before purchasing.

“For retailers with a strong mobile shopping experience, mobile transactions neared parity with desktop in 2015. They successfully met consumers on their devices and shifted browsers into buyers.”

In Q4 2015, mobile hit 30% of transactions versus 27% in 2014. Top quartile retailers, as ranked by percentage of transactions occurring on a mobile device, increased mobile’s share of all transactions even faster – from 35% to 44%

 

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Japan, UK and South Korea continue to lead the globe in mobile transactions, and smartphones lead tablets in most countries.

“Mobile is becoming an integral part of the shopping experience, particularly for verticals such as fashion and mass merchants,” adds Criteo. “Health & beauty transactions saw the largest increase in mobile share at 38% year over year, followed by home and mass merchant categories.”

Smartphone’s share of mobile transactions grew by more than 15% year over year, now accounting for 60% of all mobile transactions in the US. The combination of better transaction channels, ubiquity, more phone models with big bright screens and fast wireless broadband is giving retailers better options for displaying their goods on mobile devices – ultimately leading to more transactions.

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