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Adobe 2016 Mobile Retail Report

Online retailers see huge growth through smartphones, but consumer spending behavior on mobile devices could lead companies to miss out on some revenue growth. Learn the consequences in Adobe’s most recent study.

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Adobe 2016 Mobile Retail Report

  2. 2. Adobe 2016 Mobile Retail Report Methodology 2 Adobe Analytics Most comprehensive and accurate report of its kind in industry Based on analysis of aggregated and anonymous data  Adobe measures 80% of all online transactions from top 100 U.S. retailers **  $7.50 of every $10 spent online with top 500 U.S. retailers go through Adobe Marketing Cloud **  Report based on analysis of 290+ billion visits from 16,000+ mobile sites and 85+ billion app launches  Companion research based on survey with 1,000+ U.S. consumers Data from Adobe Marketing Cloud: Adobe Mobile Services
  3. 3. Key Insights 3 1. Smartphones are the primary drivers of growth, but retailers are struggling to get consumers to spend at levels similar to desktop. 2. While 26% of shopping carts on a desktop turn into an order, smartphone carts only see a 16% success rate. This indicates differing experiences and shopping behaviors. 3. Simply having an app doesn’t cut it; the app graveyard is getting larger due to abandonment and lack of mobile optimization. 4. E-commerce continues to grow, but possible troubles ahead: retailers stand to lose up to 11% of potential revenue by Christmas 2017. Adobe 2016 Mobile Retail Report
  4. 4. Smartphones drive growth 4 Despite strong growth in visits for smartphones (+33% Q2 2016 YoY), overall visits for the average retailer remains flat: • Overall traffic increased 1% • Desktops and tablet visits shrank (-6% and - 10%, respectively) Smartphones make up some of the revenue loss seen by average retailers on desktops and tablets: • Overall revenue increased 10% • Smartphones grew by 65% YoY, while desktops and tablets both shrank by -2% Adobe 2016 Mobile Retail Report
  5. 5. Consumers addicted to mobile browsing 5 Smartphone traffic is cannibalizing desktop on retail websites: • Desktop traffic share decreased -6% YoY • Smartphone traffic share increased +8% YoY Mobile traffic is likely to overtake desktop by Q1 2018 for average US shopping sites Desktop remains the cash cow  59% of traffic, 75% of total revenue  Smartphones: 32% of traffic, only 16% of revenue Adobe 2016 Mobile Retail Report
  6. 6. Smaller screens drive smaller orders 6 Yet mobile consumers are more impulsive:  Desktop AOV is $155. Smartphone AOV is $120 (desktop outperforms by $35)  Smartphone revenue-per-visit is 3.6x lower than on desktop Purchasing still takes place on larger screens: • Desktop conversion is 2.8x higher than smartphone, tablet is 2x higher Adobe 2016 Mobile Retail Report
  7. 7. Mobile shoppers abandon their shopping carts 7 Mobile requires more to reach an order  Only 16% of shopping carts turn into orders on a mobile device  Consumers switch to desktop for ease of navigation (30%), seeing images on a bigger screen (26%) and to enter payment information (16%) Survey shows Metric Smartphone Tablet Desktop Cart Conversion Rate 16% 22% 26% Visit Conversion Rate 1.0% 2.0% 2.8% Adobe 2016 Mobile Retail Report
  8. 8. High abandonment leads to a larger app graveyard 8 Consumers are only interested in the best apps on the market  The average app saw 24% growth YoY, while the top 20% saw 104% growth in app launches  Retail sees the highest abandonment rate: 60% of apps are used less than 10 times Consumers aren’t interested in wide spread app use:  45% of U.S. consumers use 1-2 apps to shop online (Source: ADI Mobile Survey 2016 (US))  15% don’t use an app at all Adobe 2016 Mobile Retail Report
  9. 9. App experience falls behind desktop: • 38% of U.S. consumers rate small screen as a common frustration, followed by ads (35%) and the “pinch and zoom” functionality (32%) • Other frustrations include slow performance and poor navigation Millennials are more resistant to app advertising: • Millennials cite irrelevant push notifications and non-personalized ads as common frustrations (33% and 22%, respectively) App frustrations 9Adobe 2016 Mobile Retail Report
  10. 10. The potential cost of a mobile shift 10 • If overall traffic remains stagnant and smartphones continue cannibalizing desktops and tablets, then retail companies stand to lose 11% of potential revenue by the end of 2017 Adobe 2016 Mobile Retail Report
  11. 11. Glossary 11 The terms utilized in this report are defined as follows: • Year over Year (YoY) - compares Q2 2016 to Q2 2015 • Mobile - refers to combination of smartphone and tablet activity; each are called out separately as appropriate • Launch - refers to starting a session with an app installed on a mobile device • Visit - refers to arriving at a website via a browser Adobe 2016 Mobile Retail Report