back to the future: bringing performance targeting to mobile devices from drs, 7.28.14

Copyright © 2014 Criteo

Back to the Future:Bringing Performance Targeting

to Mobile Devices

Rob DeichertManaging Director US

July 2014

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


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


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


Shift happens


62% of ad revenues in Q2 2014

Facebook is officially a mobile

company


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


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


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


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


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%


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%


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


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


But Complexity has created barriers to spending

15


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


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


The world is different now!

18


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


Real-time performance

advertising has arrived for

mobile

20


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


For Apps: Apple ID for Advertisers, Android Advertising ID

Deep Linking HTML5 AdsPrivacy-

Positive IDs Standards are emerging


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



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


The Shift Has Begun


Case Study: One top worldwide retailer Mobile performance

CTR

0.27%

0.43%

CR

9.59%11.89%

Conversion rate CTR


Next challenge: cross-device


90% of consumers use more than one device to

complete a task

Source: Google


There are two ways to identify a user

1.EXACT MATCH –

The much preferred method

2.IMPLIED MATCH


• 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


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


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


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


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


Thank YouRob Deichert@hamptonsrob

back to the future: bringing performance targeting to mobile devices from drs, 7.28.14

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