One in three online transactions at risk of misattribution, says research
Conversion rates are undercounted by 41%, with similar discrepancies throughout transactions.
Criteo S.A., the performance marketing technology company, announced its State of Cross-Device Commerce Report for the second half of 2016. The analysis reveals insights into consumer shopping habits and forecasts predictions for cross-device commerce across the globe, including Australia.
In prior years, Criteo’s bi-annual report centered on mobile commerce, however this edition reflects the need for retailers to deepen their understanding of cross-device consumer behaviour and align marketing strategies to maximise ROI.
“Adoption of a cross-device measurement strategy is a critical imperative for all retailers,” said Pressy Sankaran, ANZ Commercial Director, Criteo.
“Marketers not only need to adopt cross-device measurement to ensure proper attribution, but also to ensure their spend is optimised for the channels delivering the highest performance. Retailers who are able to deliver a seamless and personalised customer experience across devices will stand out from the crowd.”
Cross-Device Measurement Means Smarter Spending and Higher Returns
As customers continue to use multiple devices along the path to purchase, marketers need to take into account how much cross-device shopping may cost in ad waste if they do not have accurate and scalable measurement. Traditional analytics tools look at activities on a device-by-device basis, providing a limited and siloed view of a customer’s multi-device journey. Shifting to a user-centric view that leverages advanced cross-device measurement tools can accurately identify a consumer and capture a complete view of their shopping experience. The case for proper cross-device measurement, identification and attribution is clear:
- More than 2 in 5 transactions may be misattributed without cross-device measurement
- Conversion rates using cross device measurement (a user centric view) are up to 1.6 times higher than a per-device view
- Cross-device measurement reveals that buyer journeys are up to 41% longer than device-centric models indicate
Mobile Will Continue to Be a Dominant Force
The customer journey remains dynamic across devices, but mobile is showing a higher transaction rate with a higher average order size. Key mobile growth data for Q4 2016 includes:
- 45% of all online purchases in Australia were completed on mobile, a year-over-year increase of 29%
- Order values on smartphones are increasing, but decreasing on tablets. Smartphone spend increased 43% year-over-year, while tablets went down 8%
- At 55% compared to 45% respectively, mobile apps globally captured more transactions than mobile browsers, a trend first noted in Criteo’s H1 2016 report
Smartphones Are the Key Device in Cross-Device Buying
The adage “browse on your smartphone, buy on your desktop” is officially dead. Consumers now reach for their smartphones for both searching and purchasing, making it even more important for retailers to provide a synchronised experience across desktop and mobile:
- More than 1/4 (27%) of all cross-device transactions begin with a smartphone
- Top retailers in Australia grew sales from smartphone transactions to 33% of all online retail sales in 2016
- Cross-device buyers are fairly evenly represented across the three primary purchase devices: smartphone (36%), tablet (46%) and desktop (43%)
Marketers can no longer afford a siloed view of their customers’ shopping behaviours. Savvy retailers offer a seamless user experience across all devices to capture purchases wherever they take place – and, with a cross-device view of the customer shopping journey, they spend their marketing dollars more wisely.
