What is The Shopper Story?

Criteo surveyed nearly 10,000 omnichannel shoppers across the globe to find out not what they shop for, but what do they think about shopping?

Key Insights

! Omnishopping is ubiquitous – and multi-directional

! Retail and brand websites drive awareness as well as consideration

! Search engines are not the shopping starting point for the majority

Shopping between sites is the norm

! Impulse purchases are almost as prevalent online as in-store

! The empowered shopper demands relevance and respect

What is an Omnishopper?

Shoppers who use a variety of devices, channels, and platforms to browse and buy products.

Omnishopping is ubiquitous

The US & the UK are the most omnichannel, Germany has less online/offline connection

More than 3/4 of shoppers globally engage in online to offline and offline to online shopping

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n = 9033

Omnishoppers are more valuable to marketers
(increase in spend)

! ! !

+23% online
+36% offline

+13% online
+31% offline
+27% online
+28% offline

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017

+14% online
+47% offline
+7% online
+44% offline
+4% online
+6% offline

Omnishopping takes many forms

It’s all about enabling the shoppers to buy and get the product whenever, wherever they want.

Showrooming

Source: Criteo Shopper Story, US, 2017 | n= 2435

Click & Collect

Buy online, pick up at a store or kiosk

Scan & Scram

See in store buy it from another retailer online

Click & Ship

See in a store but buy on your phone for convenience

Webrooming and Showrooming are the most common

Click & Collect and Click & Ship are also on the rise.

Frequency of Cross Channel Purchasing (percent of total)

Browse products online and then purchase them in a retail store

Order goods online and pick them up in a retail store

38% another retailer’s site (Amazon, etc.)

Make purchases online after seeing the product at a retail store

39% from that retailer’s website

Source: Criteo Shopper Story, US 2017 | n = 2435

What is the Role of Real World Retail?

! !

Both retail and digital shopping valued across markets

Digital and real-world retail both have their place globally. In today’s busy world, omnishoppers may prefer all shopping online, but they like shopping in stores when they have time.

Shopping Preference by Country (percent of total)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n= 9033

Real-world retail is about the experience and discovery

I look forward to shopping in stores when I have the time.

I prefer to do as much online shopping as possible.

I use my phone while in-store to research products online. I like to try new retail stores.

I like to shop online at new websites.

I enjoy shopping in stores to understand what is in style.

Source: Criteo Shopper Story, US 2017 | n=2435

What Influences the Shopper Journey?

! !

Contrary to the old model, digital channels drive awareness across categories

Digital has more impact than word of mouth and retail stores, but TV still scoops up ad spend.

First Learn About New Products (weighted average by country)

I typically find out about something new when I see it online.

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Digital drives product consideration

Omnishoppers are eager for information about products. They use websites to get the information to make product decisions.

When I’m deciding between coffee makers, I go online to compare.

Learn More About New Product (weighted average by country)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Digital is also a point of purchase driver, regardless of where the purchase is made

Last Influenced About New Product

(weighted average by country)

I saw an offer on a retail site for just what I wanted.

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Retail sites attract high intent shoppers

Shoppers turn to retail sites when they are in market to buy. They typically know the item or type of product they want.

Users Who Start Product Search at Retail Website (percent of total)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033 *Brazil is an outlier as Amazon has a more limited presence in the market

The omnishopper journey does not usually start at search

of shoppers do not start their purchase at a search engine

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017

Starting Point When Know Exact Item to Purchase (percent of total)

Retail websites are seen as increasing in influence – even over word of mouth, search and social

Resources More or Less Influential in Purchase Process

(percent of total)

Retailer websites/apps

Friends/word of mouth

Search engines

Social media

Brand websites/apps

Retail stores

TV advertising

Online video advertising

Online ad banners

Magazine advertising

Newspaper advertising

0% 10% 20% 30% 40% 50% less influential more influential

Source: Criteo Shopper Story, US 2017 | n=2435

Location and immediate need drives store visits

Omnishoppers seek convenience and immediacy from retail stores.

Factors Make Users More Likely to Shop in a Retail Store (percent of total)

Retailers also need to:

! Up the “genius” level of their staff

! Optimize product mix

! Enable product experience

Source: Criteo Shopper Story, US 2017 | n=2435

How eCommerce sites can improve conversion

Percent of shoppers that say these website factors are very important.

$$ 360^{\circ} $$

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Source: Criteo Shopper Story, US 2017 | n=2435

How Do People Shop Online?

The journey is increasingly complex

Cross site shopping is a common activity for apparel shoppers

Results show that omnishoppers in Brazil and Japan are the most discerning shoppers.

I check out more than one website to see what they have, when I can get it, and what it costs.

“I Often Visit Multiple Websites So I Can Compare Products” (percent of shoppers who agree)

32%
29%
47%
29%

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Selection and inventory management drive site abandonment

Product information has more significance for CE, reviews are more important for baby.

Why Browse Different Websites

(percent of shoppers who agree)

45% 43% 39% 39% 40%

34% 35% 32% 32% 32%

30% 26% 24% 24% 23%

25% 20% 20% 18% 18%

17% 17% 17% 17% 15%

15% 14% 14%

Source: Criteo Shopper Story, US 2017 | n=2435

Online impulse purchases are a global phenomenon

Brazilians are most likely to make impulse apparel purchases. Japanese shoppers are more likely to make unplanned purchases for CE products.

Shoppers making unplanned online purchases by country
(sometimes/frequently)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Impulse purchases almost as prevalent online as in-store

CPG, CE and Health & Beauty brands need to adopt ways of incenting impulse purchasing online in ways similar to what they do offline.

Frequency of Making Unplanned Purchases – By Product Category
(sometimes/frequently)

Source: Criteo Shopper Story, US 2017 | n=2435

What Do Shoppers Think About Advertising Relevance and Data Usage?

! Awareness is high: Omnishoppers demand respect and relevance

!

Shoppers recognize retargeting and understand the value

Japanese Omnishoppers are most enthusiastic about retargeting, Brazilians are most likely to notice.

I like it when I see ads for things I was shopping for yesterday. A deal can make me buy now.

Awareness and Attitudes to Ad Retargeting (percent of total)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n=9033

Omnishoppers want control, consent and transparency

Attitudes Toward Retailers Using Browsing Data

(percent of total)

I am concerned about these retailers using my

Data may be the way to 42%

personal data for ad targeting without my consent

drive ultimate relevance for omnishoppers, but

I feel that using my personal data invades my privacy 39%

publishers and retailers need to tread with caution

I am interested in learning more about how they are 22%

– and full disclosure. using my data

I don't believe that retailers are using my internet 3% activity data

0% 10% 20% 30% 40% 50%

Source: Criteo Shopper Story, US 2017 | n=2435

Use data well — but don’t abuse the privilege

Brands and retailers need to gain the broadest possible view of the shopper so that they receive the most timely, relevant offers –

and think about long term loyalty versus short term gains.

Attitudes Towards Online and Offline Advertising

(sometimes/frequently)

I am annoyed by offers for products I have already purchased34% 1/3 I feel advertisers care more about my money than my long-term loyalty34%

are annoyed by improper data use

Ads typically don't generate negative feelings for me26% I am sometimes embarrassed by inappropriate ads18% I feel I am disrespected by the advertisers18% I feel advertisers ignore my personal preferences17% 0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: Criteo Shopper Story, US 2017 | n=2435

Takeaways for reaching the empowered omnishopper

With the prevalence of omnishopping, marketers need to market to the shopper – not the device or channel.

The omnishopping mandate eliminates silos

Brands need to consider digital across the full funnel to ensure that they are capturing shoppers where decisions are increasingly made.

Retail sites reach shoppers in buying mode

Amazon does not dominate the omnishopper journey. Retail sites, building on long-time offline relationships, are a way to reach highest intent omnishoppers.

Takeaways for reaching the empowered omnishopper

Omnishopper journeys include multiple sites and sessions. A networked approach to commerce marketing enables brands to reach valuable consumers across every channel and device.

It’s an ecosystem

With impulse purchasing almost as prevalent online as in-store, brands and retailers need to use data to present the most relevant and complementary products to encourage “click to cart”.

Respect the shopper

Omnishopper data usage is a privilege – advertising timeliness and relevance is the demand. Marketers who respect the shopper earn long time loyalty.

About Criteo

Criteo (NASDAQ: CRTO), the leader in commerce marketing, is building the highest performing and open Commerce Marketing Ecosystem to drive profits and sales for retailers and brands. 2,700 Criteo team members partner with 16,000 customers and thousands of publishers across the globe to deliver performance at scale by connecting shoppers to the things they need and love. Designed for commerce, Criteo Commerce Marketing Ecosystem sees over $550 billion in annual commerce sales data.