The document is about a performance marketing conference in Moscow on October 15. It summarizes a presentation by Dirk Henke of Criteo about the future of mobile marketing in Russia. Key points include: - Mobile usage and ecommerce are growing rapidly, with weekends and mobile dominating online activity. - Historically mobile marketing has been complex due to different operating systems, lack of standards, high app uninstall rates, and not recognizing cross-device usage. - However, standards are emerging, targeting is possible across devices with solutions like cookies and IDs, and Criteo has addressed challenges with exact matching and personalization reaching over 150 million mobile users.

1. PERFORMANCE!
MARKETING
MOSCOW
15!
OCT
Thefirstprofessionalconference!
aboutPerformanceMarketinginRussia
DirkHenke,
ManagingDirectorEMEA,Criteo

2. Copyright © 2014 Criteo
The future of mobile marketing
Dirk Henke
Managing Director
Eastern Europe, Middle-East & Africa
Moscow. October 2014

3. Copyright © 2014 Criteo
2
Copyright © 2014 Criteo

4. Copyright © 2014 Criteo
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Copyright © 2014 Criteo

5. Copyright © 2014 Criteo
Total time spent online
SOURCE : Total U.S. Internet Usage in Minutes in may (Billions), Comscore MMX Multi-Platform,
August 2013 OR SIT AMET
Desktop
Smartphone
Tablet
Bn Minutes
0
200
400
600
800
1000
1200
From 2010 To 2013

6. Copyright © 2014 Criteo
Complexity is the
New normal

7. Copyright © 2014 Criteo
Luckily, no one buys
anything on mobile
devices right?

8. Copyright © 2014 Criteo
Source : Capgemini Consulting – september 2013
Ecommerce market (UK)
E-retail excluding mobileTotal e-retail
0%
5%
10%
15%
20%
Q1
2011/12
Q2
2011/12
Q3
2011/12
Q4
2011/12
Q1
2012/13
Q2
2012/13
Q3
2012/13
Q4
2012/13
Q1
2013/14
Q2
2013/14
Copyright © 2014 Criteo

9. Copyright © 2014 Criteo
Mobile buyers in Russia
41%
28%
43%
30%
2013
2012
Global Average Russia
Share of smartphone owners who
use it for shopping
Source: Source: PWC Global Total Retail Survey, Jul-Aug 2013
8Copyright © 2014 Criteo
44%
31%
41%
28%
2013
2012
Global Total Russia
Share of tablet owners who use it for
shopping

10. Copyright © 2014 Criteo
16%
24%
January 2014
September 2014
SOURCE : CRITEO INTERNET DATA – COUNTRY: Russia
We see it with our advertisers

11. Copyright © 2014 Criteo
Source : Criteo Internet Data
Which devices are they using?
Android - Smartphone
Android - Tablet
iPhone
iPad
Mobile-Other
Copyright © 2014 Criteo
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
RUSSIA EU BIG 5 UK

12. Copyright © 2014 Criteo
Weekends are even more dramatic
0.00%
10.00%
20.00%
30.00%
40.00%
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Mobile Sales (% total)
24,28%
Week Average
22,94% 22,99% 22,94% 22,64% 22,86%
27,91%27.74%
In Russia
28% of ecommerce
sales on Sunday are
from Mobile
devices
Copyright © 2014 Criteo

13. Copyright © 2014 Criteo
Historically Mobile marketing has
been hard for 4 reasons

14. Copyright © 2014 Criteo
1. Complexity: Mobile is four different worlds
ANDROIDiOS
In-App
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Mobile Browsing
ANDROIDiOS
Copyright © 2014 Criteo

15. Copyright © 2014 Criteo
2. Lack of standards
Generating real-time
creatives that look the
same on thousands of
devices isn’t possible
No Flash
You can’t deeplink from
an ad to a specific page
within an app
No equivalent
of a URL for appsNo targeting
You can’t target users
on mobile devices

16. Copyright © 2014 Criteo
3. Smartphone dominated by “spray and pray” app downloads
More and more apps are
downloaded
But most apps have a
retention rate under 35%
after 90 days1
Low Conversion rates
on smartphones
1 Source : Flurry analytics

17. Copyright © 2014 Criteo
An Analysis of
2,000 Criteo
Advertisers covering
86M users showed:
15-20% of their Sales
were Cross-device
in Q2 2014
How can you
show relevant
marketing when you
don’t recognise the
user?
4. Cross-Device Usage Is Huge. But a huge problem.
(1): Criteo analysis on users with CRM ID collected on multiple devices (~10% of users), on ~2000 WW advertisers in Q2 2014 proved that 15% to 20% of conversions on these users happen on a device following a click on
another device less (PC 30 days)
Source : Criteo Internal Data – figures for devices based on unique cookies.
Copyright © 2014 Criteo

18. Copyright © 2014 Criteo
The world is different
now!

19. Copyright © 2014 Criteo
62% mobile revenue
Facebook is
officially a mobile
company

20. Copyright © 2014 Criteo
Mobile retail is evolving

21. Copyright © 2014 Criteo
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2008 2009 2010 2011 2012 2013
US UK DE
% digital adspend on mobile
Adspend is shifting to mobile
Copyright © 2014 Criteo

22. Copyright © 2014 Criteo
Standards are emerging!
HTML 5 Ads Deep linking
No Flash
No equivalent
of a URL for apps

23. Copyright © 2014 Criteo
Targeting
is the biggest mobile challenge.
How has Criteo addressed this?

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There are
two
challenges
Targeting on
mobile devices
Targeting
cross-device

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In both cases, there
are two technical
ways to identify a
user

26. Copyright © 2014 Criteo
• Persistent identifier used to
positively match over time or
across devices: eg cookie or login
• Seamlessly supports opt-out /
privacy guidelines
• Challenge 1: Getting volume
• Challenge 2: Privacy. Must
ensure user transparency, control,
and no personally identifiable
information
1.
EXACT MATCH –
The Best

27. Copyright © 2014 Criteo
2.
IMPLIED
MATCH• Machine learning model
• Uses device characteristics to
estimate a probability that two devices
are the same/ used by same person.
• Challenge 1: By definition creates
“false positives”, wrongly matching
different people.
• Challenge 2: Precision varies from
40-80%. This radically reduces
performance, and therefore ROI.
• Challenge 3: Difficult privacy
controls/ opt-out management

28. Copyright © 2014 Criteo
It is a MYTH that
you can’t target on
mobile devices
Cookies work in
mobile browser.
Mobile IDs work
in-app
Copyright © 2014 Criteo

29. Copyright © 2014 Criteo
Exact Match
Criteo Now Has A Solution Across All 4 Mobile Environments
Transparency &
user control over
ad choices
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SOURCE : Criteo Internal Data – figures for devices based on unique cookies.
Copyright © 2014 Criteo
Unique
technical
solutions based
on advertiser site
integrations
Last month we showed targeted personalized ads to over
150M mobile users, including over 50M Apple mobile
devices
Generating over $1Bn annualized post-click mobile sales

30. Copyright © 2014 Criteo
Example: Full Personalisation In-App, using IDFA for Exact Match
User visits your app
Then opens a new app
and sees a targeted ad
User clicks and lands on a
product “page” in your app
Copyright © 2014 Criteo
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IDFA for
Exact Match
targeting
HTML5 ad
In-App
Deeplinking

31. Copyright © 2014 Criteo
X-Device
Is Next!

32. Why is Cross-device important?
More SALES
the same great
ROI
>3 devices / user

33. Copyright © 2014 Criteo
Criteo cross-device
A customer is browsing
products on his work
computer…

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… and purchases the
recommended product
Criteo cross-device
Later, he sees an ad
on his phone,
he clicks on it
The Criteo Way:
Personalization +
Performance

35. Copyright © 2014 Criteo
Mobile has been a journey for Criteo…
Criteo launches
performance
display
2008
Desktop
Criteo launches
in-app solution,
based on Ad-X
Tracking
Jan 2014
In-App
Criteo acquires
Ad-X Tracking.
Allows in app
mobile tracking
July 2013
In-App
Criteo launches
full Mobile Web
solution including
iOS
April 2014
All mobile
browsers
Criteo launches
Mobile Web for
non-iOS devices
Dec 2013
Android mobile
browsers
Coming soon:
Cross-Device

36. Copyright © 2014 Criteo
Conclusion
MOBILE
SALES
are 24% today
MOBILE
MARKETING
has caught up
EXACT MATCH
PERSONALIZATION
is best:
Apple and Android.
Browser and in-app.
CRITEO’S
CROSS-DEVICE
coming soon!
COMPLEXITY
is the New normal
35

37. Copyright © 2014 Criteo
Thank you!
Dirk Henke
MDEastern Europe,
Middle-East & Africa
d.henke@criteo.com

38. PERFORMANCE!
MARKETING
MOSCOW
15!
OCT
Thefirstprofessionalconference!
aboutPerformanceMarketinginRussia