commerce marketing outlook in 2018: the 4cs of …...kathryn koegel director of shopper insights...

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


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.


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

0.9 1.1

1.8 1.6 1.5 1.5 1.4

1.0

2.2 2.1 2.4 2.5 2.6

2.8 2.6

2.3 2.5 2.5

3.2 2.8

2.6

2.3 2.4

2.3 2.0

2.3 2.5

2.1

1.4 1.3

1.1

0.8 0.9

1.6 1.5 1.4 1.4 1.3

0.9

Frid

ay

Satu

rday

Sund

ay

Mon

day

Tues

day

Wed

nesd

ay

Thur

sday

Frid

ay

Satu

rday

Sund

ay

Mon

day

Tues

day

Wed

nesd

ay

Thur

sday

Frid

ay

Satu

rday

Sund

ay

Mon

day

Tues

day

Wed

nesd

ay

Thur

sday

Frid

ay

Satu

rday

Sund

ay

Mon

day

Tues

day

Wed

nesd

ay

Thur

sday

Frid

ay

Satu

rday

Sund

ay

12/1 12/2 12/3 12/4 12/5 12/6 12/7 12/8 12/9 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18 12/19 12/20 12/21 12/22 12/23 12/24 12/25 12/26 12/27 12/28 12/29 12/30 12/31

Shoppers Purchasers

Christmas

Cyber Week 2


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


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


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)


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


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


• 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


22 •

The Cashless Store is Here Now


Context

24 •

Voice AI is Now All About Context


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


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


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?


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?


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 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.


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 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 &

Google

What Brands & Retailers Need to Do Now…


More information…

[email protected] - @kkoegel

Criteo.com/insights

Questions?…


Thank You

commerce marketing outlook in 2018: the 4cs of …...kathryn koegel director of shopper insights...

Documents