back to the future: bringing performance targeting to mobile devices from drs, 7.28.14
DESCRIPTION
Rob Deichert from Criteo presentation deck from Digiday Retail Summit, 7.28.14TRANSCRIPT
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Copyright © 2014 Criteo
Back to the Future:Bringing Performance Targeting
to Mobile Devices
Rob DeichertManaging Director US
July 2014
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Copyright © 2014 Criteo 2
Making display perform
Reach the right user, at the right time, with the right message
BUY
BUY
UnmatchedReach & scale
PersonalizedCreative
CPCBidding
Optimization & control
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Copyright © 2014 Criteo 3
Real-time, personalized advertising drives results across channels
CRITEO PERFORMANCE ENGINE
Advertiser data Publisher data Criteo data
Personalized advertisingPure post-click performance
EmailDesktop
Mobile Web
In-App
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Copyright © 2014 Criteo 4
Our scale
+50 Countries
16 Offices
773$1
9.7 Billions $3
R&D represents
40% of the workforce
+7000Publishers
+5500 Advertisers
+1,000 Employees
90% Retention rate2
Listed on the NASDAQ since October 2013
1: Revenue in 2013. +63% from 20122: Annual rate
3:$ of turnover generated to our clients - turnover post-click ww year 2013
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Shift happens
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62% of ad revenues in Q2 2014
Facebook is officially a mobile
company
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Mobile as a % of worldwide Internet traffic
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%
SOURCE: StatCounterGlobal Stats – 05/2014
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Ecommerce traffic shifting to mobile, tablets lead the charge
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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Mobile devices represent a growing commerce opportunity
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: emarket, April 2014
www.eMarket.com
Nearly 20% of ecommerce sales in 2014
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Case Study: one top worldwide retailer
Aug. 13 Sept. 13 Oct. 13 Nov. 13 Dec. 13 Jan. 140%
1%
13%
23%26%
31%
0%2%
13%
21%24%
29%
Share of mobile on overall sales and clicks
Mobile sales Mobile clicks
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Client ad spend is shifting to mobile
% mobile of digital ad spend
2008 2009 2010 2011 2012 20130%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Source : Criteo Internal Data – Worldwide RevExTacUS UK
% mobile for Criteo
SEP 2013 MARCH 2014
15.0%
2.5%
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We also see US mobile sales on the rise
De-cember
January February March0%
1%
2%
3%
4%
5%
6%
7%
% of sales% of order value
100% increase in share of mobile sales
+100%
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Mobile compliments desktop activity
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
116
96
90
80
Average = 100
Purchases 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
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Case Study: the “In-App Effect” for a travel advertiser
Monday Tuesday Wednesday Thursday Friday Saturday Sunday0%
5%
10%
15%
20%
25%
30%
0:00
2:00
4:00
6:00
8:00
10:0
012
:00
14:0
016
:00
18:0
020
:00
22:0
00%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
(Day) Consumer Reach Distribution (Week) Sales Distribution
Mobile Desktop
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But Complexity has created barriers to spending
15
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Traditional barriers to spending
Mobile web vs. AppsApp clutter, low engagement
No URL for appsNo flash
No targeting on SafariNo real-time creative
Fragmentation Lack of Standards No Personalized
Targeting at Scale
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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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Copyright © 2014 Criteo
The world is different now!
18
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Mobile has been a journey for us…
Criteo launchesperformance display on Desktop
2008
Criteo acquires Ad-X – allowing in app mobile tracking
2013
Criteo launches Mobile Web
2013
Criteo launches in-app solution
2014
Criteo launches full Mobile Web solution (incl. IOS)
2014
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Copyright © 2014 Criteo
Real-time performance
advertising has arrived for
mobile
20
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Consistent user experience regardless of browser
Including dynamic personalised relevant ads on Safari
Uses industry standard cookies
Mobile solution across all browsers
Providing customer transparency and control over ad choices
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For Apps: Apple ID for Advertisers, Android Advertising ID
Deep Linking HTML5 AdsPrivacy-
Positive IDs Standards are emerging
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In-app personalization is now available
23
User surfs in your app
… Then opens a new app and sees a targeted ad
User clicks and deeplinks to a product « page » in your app
Copyright © 2014 Criteo 23
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Unlock a valuable new audience quickly
Support for Cookies on iOS Devices
Flexible Tagging and HTML Creative
Average+11%
Conversions
1: Safari & IOS average traffic on 250 live advertisers with EBS during Dec. 2013
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Copyright © 2014 Criteo
The Shift Has Begun
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Case Study: One top worldwide retailer Mobile performance
CTR
0.27%
0.43%
CR
9.59%11.89%
Conversion rate CTR
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Next challenge: cross-device
Copyright © 2014 Criteo
90% of consumers use more than one device to
complete a task
Source: Google
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There are two ways to identify a user
1.EXACT MATCH –
The much preferred method
2.IMPLIED MATCH
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• Persistent identifier used to positively match: eg cookie
• Seamlessly supports opt-out / privacy guidelines
• Challenge 1: Getting volume
• Challenge 2: Privacy. Must ensure user transparency, control, and no personally identifiable information
1.EXACT MATCH –
The Best
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2.IMPLIED MATCH• Machine learning model
• Uses device characteristics to estimate a probability that two devices are the same/ used by same person.
• Challenge 1: By definition creates “false positives”, wrongly matching different people.
• Challenge 2: Precision varies from 40-80%. This radically reduces performance, and therefore ROI.
• Challenge 3: Difficult privacy controls/ opt-out management
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Q1 2011/12 Q2 2011/12 Q3 2011/12 Q4 2011/12 Q1 2012/13 Q2 2012/13 Q3 2012/13 Q4 2012/13 Q1 2013/14 Q2 2013/140%
5%
10%
15%
20%
Ecommerce market (UK example)
Total e-retail E-retail excluding mobile
Source : Capgemini Consulting – September 2013
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Shift happens…..
Aug. 13 Sept. 13 Oct. 13 Nov. 13 Dec. 13 Jan. 140%
1%
13%
23%26%
31%
0%2%
13%
21%24%
29%
Share of mobile on overall sales and clicks
Mobile sales Mobile clicks
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Capitalizing on the Opportunity
Get ahead of the shift to
capture share
1
Tried and true techniques can work in mobile
2
Don’t let the perfect be the enemy of the
good
3
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Thank YouRob Deichert@hamptonsrob