1. ADOBE 2016 MOBILE RETAIL REPORT

2. Adobe 2016 Mobile Retail Report
Methodology
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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. Key Insights
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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. Smartphones drive growth
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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. Consumers addicted to mobile browsing
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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. Smaller screens drive smaller orders
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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. Mobile shoppers abandon their shopping carts
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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. High abandonment leads to a larger app graveyard
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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. 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. The potential cost of a mobile shift
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• 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. Glossary
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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