Kathryn KoegelDirector of Shopper Insights
Commerce Marketing Outlook in 2018: The 4Cs of Retail
©CRITEO 2018: use with permission only
2 •
Director of Shopper Insights
Kathryn Koegel
The Commerce Marketing Outlook in 2018
3 •
Holiday recap: What it means
for 2018
Trends to know: The 4 C’s of
retail
Commerce Marketing:
Dropping the ‘e’ in
ecommerce
Q&A
Agenda
But first…a quick recap of the Golden Quarter
Retail & US Economics• Post Election year• Wall Street soaring• Businesses excited about the tax cuts• Consumer confidence is high
6 •
It’s a Golden Quarter
The calendar said Halloween but shoppers got a jump on the other holidays
Christmas trees had 55% more searches than
Halloween candy in October.
Criteo Sponsored Products data: October 1 - 31 – 2017 - US
7 •
The biggest growth in buying happened earlier in November
Criteo Sponsored Products data: 11/1 – 27, 2017
Purchasing increased most the first weekend of the month, and then again around the 13th, when some retailers triggered deals in advance of Black Friday. Thanksgiving is becoming a big ecommerce day.
Election Day impacted sales
last year.
Early Black Friday sales
triggered
The Thanksgiving mobile commerce
phenomenon
Waiting for Cyber Monday
deals
The Commerce Marketing Outlook in 2018
8 • Criteo Sponsored Products data 11/20 – 12/3/2017
Cyber Monday: The Biggest Ecommerce Day in History
Black Friday was 6.2X an average day in October. The greater increase of purchasing vs shopping was likely due to preshopping online or in stores.
The Commerce Marketing Outlook in 2018
9 •
US Shopper v Purchaser growth December
Christmas Day is the inflection point
Source: Criteo Sponsored Products network data, December 2017
1.8 1.8 1.8 1.7 1.8 1.8 1.7 1.7 1.8 1.7 1.8 1.8 1.7 1.6 1.7 1.7 1.6 1.6 1.7 1.6 1.4 1.4 1.3
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Shoppers Purchasers
Christmas
Cyber Week 2
The Commerce Marketing Outlook in 2018
What time of day were they buying?
Key Commerce Days
11 •
Thanksgiving purchasing peaked between 9-10PM EST
Criteo Sponsored Products data 11/23/2017
Indexed to the lowest hour
Note: this data is collected on Eastern time and not normalized by time zone so 9 AM EST = 6 AM PST.
Mattress commerce
Couch commerce
Hourly purchasing index
The Commerce Marketing Outlook in 2018
12 •
The biggest hits of the season were built with social, commerce marketing and word of mouth.
You Don’t Need TV or Print to Produce a Blockbuster Product
Connectivity Context Content Cooperation
Introducing the 4Cs of Retail
The Commerce Marketing Outlook in 2018
Connectivity
15 •
Connectivity drives Omnishopping
Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n = 9033
Shop using a variety of devices and channels
to make a purchase
83% 83% 78% 72%79% 78%
US UK FR DE BR JP
Omnishoppers(percent of total)
The Commerce Marketing Outlook in 2018
16 •
Tech meets tactile in Gen Z
I don’t like to buy new things unless I can see and touch them
I use my phone in store to research purchases I am considering
Retail stores have become more important for me
Tech meets tactile in GenZ
I use my phone in-store to research purchases I am considering
Retail stores have become more important for me
I don’t like to buy new things unless I can see and touch them
Source: Criteo Shopper Story, US 2017 | n = 243
The Domestication of iOT
By 2020, 80% of all Samsung devices will be connected to the internet
18 •
Introducing the OS for the IoT
Is this a bluetooth speaker? Or something else.
Google Home Mini Amazon Echo
The Commerce Marketing Outlook in 2018
19 •
Boomers are more interested in Voice Activation than Gen Z and MillennialsIt’s not just about early adopters – let’s talk boomers
*Source: BI Intelligence
The Commerce Marketing Outlook in 2018
• Echo Dot #1 product sold on Amazon in Q4 –Amazon
• Google Home Mini breakout CE product of holiday 2017 – Criteo data
• Est 1/5 of US households now have a voice activated household device*
• Best Buy “deal of the day” – Alexa
• P & G & Clorox – Alexa
• Google Home – Walmart
• Samsung – pumping up ad division
Marketers want in Which of the following technologies do you expect to be working with in the next two years?
Voice activated assistants: Amazon Alexa, Apple Siri, Samsung Bixby, Microsoft
Cortana, etc.
Voice activated household devices: Amazon Echo,
Amazon Dot, Google Home, etc.
Smartphones as personal product scanners
Connected refrigerators and other appliances
loT devices that automatically re-order groceries (Amazon
Dash, Kwik)
RFID
57%
55%
41%
32%
22%
18%
Base N=100
Source: Criteo, Kantar/Millward Brown, Trade Marketing in Transition Report 2017*Source: CIRP October 2017
AI / Machine-learning: Real World ApplicationsAdvertising personalization
• IBM Watson: 14 use cases
• Criteo Dynamic Retargeting
• Criteo Kinetic Design - video
• Criteo Sponsored Products
The Commerce Marketing Outlook in 2018
22 •
The Cashless Store is Here Now
The Commerce Marketing Outlook in 2018
Context
24 •
Voice AI is Now All About Context
The Commerce Marketing Outlook in 2018
VR / AR Gets RealImpact in 2018
• IKEA – first globally distributed and successful AR
• Magic mirrors
• Swarovski – seen in context; do not have to distribute globally, order with your eyes
• Did an artist get it right?: Laurie Anderson
The Commerce Marketing Outlook in 2018
26 •
• What are you going to do with your hands free?
• Car Commerce• Streaming entertainment• Autonomous vehicles now
commonplace in Silicon Valley• Samsung: see what’s in your
fridge from your car
The Connected Car
The Commerce Marketing Outlook in 2018
Content
Video Triumphs and Challenges
• Majority of millennials are cord-cutters• Scarcity of premium inventory• More video sold via programmatic with dynamic
insertion for ads• Explosion of social video• Netflix factor: premium content but no ad breaks• Conversely: TV ads MORE effective?
The Commerce Marketing Outlook in 2018
Brand Safety, Fraud, What is Quality Journalism?
• YouTube & GM
• Facebook, fake accounts, politics
– “One of our big focus areas for 2018 is making sure the time we all spend on Facebook is time well spent.”
• Mark Zuckerberg – January 11, 2018
Is Facebook 2018 the Facebook
Mark Zuckerberg envisioned?
The Commerce Marketing Outlook in 2018
Cooperation
Can’t Build? Buy or Partner
• Amazon and Whole Foods: $13.7B
• Amazon Kohl’s for returns
• Walmart Lord & Taylor for Returns
• Walmart Google Express service
• Walmart and Jet.com
• Walmart: ModCloth, Bonobos and Shoes.com.
• Sainsbury’s and Argos
• Alibaba and Sun Art
32 •
• Brands and retailers concerned about walled gardens of data from Amazon, Facebook andGoogle
• Three-fifths of brands and retailers are already part of a data collaboration initiative and are pooling non-personally identifiable data to better connect with shoppers.
• 72% of marketing execs believe data collaboration will lead to increased revenue, increased profits (65%), and increased customer satisfaction (56%)*.
Alternatives to the Walled Gardens
Source: *Criteo and Forbes Insights, The Commerce Data Opportunity: Collaboration Levels the Retail Playing Field, Q4 2017
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Percentage of respondents that believe pooled data assets/collaboration will lead to…
Increasedrevenue
Increasedprofits
Increased customer
satisfaction
The Commerce Marketing Outlook in 2018
The New World of eCommerce Marketing
34 •
Commerce marketing connects shoppers with the things they
need and love, however and wherever they research,
evaluate, and buy.
The Commerce Marketing Outlook in 2018
35 •
The Criteo Commerce Marketing Ecosystem
Criteo’s advantages• Over 10,000 participating websites• 2B+ ids and growing• Global coverage• +10% average uplift
Open, transparent, secure, fair• Encrypted and double-hashed PII• Access at no additional cost
Participation• Opt-in by sending hashed
ids via OneTag or App Events SDK
Availability• Now
The Commerce Marketing Outlook in 2018
The Methodology
Summary
38 •
Be prepared for the Golden
Quarter: Ecommerce is fundamentally changing retail
seasonality
The internet is not what you think
it is:
Voice, autonomous cars, and iOT: by 2020,
it all changes
Take advantage of omnishopping
techniques: Showrooming, Webrooming,
Click & Collect, Click & Ship
Deliver seamless experiences
across devices and channels:
Address the shopper as one
person
Pool data assets: to remain
competitive with Facebook, Amazon &
What Brands & Retailers Need to Do Now…
The Commerce Marketing Outlook in 2018
Questions?…
The Commerce Marketing Outlook in 2018
Thank You