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1 Trends in ecommerce Riga, We support knowledge driven business decisions.com

2 Gemius consultancy & expertise on the digital world online audience measurement currency in +30 markets online camapaigns measured by gemiusdirecteffect monthly no 1 choice in EMEA 15 years of experience Over clients +100 leading publishers serving +35 bln impressions with AdOcean monthly +450 thousand websites measured per year first page optimization based on +2 bln clicks measured monthly 2

3 Internet globally 3

4 CEE region among top developed countries in access to internet 4

5 Google still rules! 5

6 With Chrome Google rules also in browsers 6

7 Optical fibers allowing global data exchange 7

8 60 seconds in internet 8

9 We went a long way over last 43 years Internet w

10 ecommerce in numbers 10

11 Global B2C e-commerce sales 889 billion EUR total value of B2C sales in ecommerce in ,075 trillion EUR sales with dynamics of 20% YTY ecommerce Sales in B2C in bln EUR Europe % of sales in general 5% 1% North America 26% 35% 3. APAC Latin America 5. MENA 33% Europe B2C Ecommerce Report

12 Biggest ecommerce markets Sales in B2C ecommerce in bln EUR per country Europe B2C Ecommerce Report

13 Europe on shopping 100% 64% 820 MIO People living in Europe 529 MIO Using internet 48% 1245 EUR spent online on average 250 MIO european citizen Bought sth online 5,5 % of value was generated through mobile channel Europe B2C Ecommerce Report

14 Best performing countries Sales in bln EUR 96 61% Of total sales in ecommerce In Europe Most dynamic markets: Turkey 75% Greece 61% Ukraine 41% Hungary 35% Romania 33% Poland 25% Latvia 25% Europe B2C Ecommerce Report

15 ecommerce in Poland RU (real users) Reach (%) Internet ,91% E-commerce ,76% Average polish consumer spent online 464 EUR = 1900 PLN in % 80% Did you ever bought something online? 60% 66% 67% 74% 69% 72% 40% 20% 0% 100% NO 28% 90% 80% 70% 60% 50% 80% 81% 78% 76% 76% 76% 68% 72% 60% 61% YES YES 72% auction e-shops Gemius ecommerce Report

16 Main categories in ecommerce reach in total internet population 70% 60% 50% 56% 61% 61% 51% 40% 35% 38% 30% 20% 18% 10% 13% 11% 10% 9% 9% 7% 11% 0% Auctions eshops Price Comparison Group Buying Promotion and discounts Opinion eshop Aggregators Gemius Audience 16

17 TOP 5 categoories clothing took over electronics Clothing 28% Multi-stores 26% AGD, RTV,Electronics, Photography, Computers 25% Other eshops with defined profile 21% Literature, music, movies 17% Gemius Audience 17

18 Prefered forms of payment bank transfer 67% 76% payment on delivery 52% 59% through payment providers ( DotPay, PayPal) 42% 50% auctions e-shops credit card 18% 28% Gemius Audience 23

19 Trends in ecommerce through the prism of Buzzwords 25

20 Buzzwords, czyli modne hasła w ecommerce content is the king social Commerce recommendation benchmarking analytics segmentation BIG DATA integrated marketing programmatic media buying personalization marketing automation tag managers mcommerce 26

21 Content is the king 27

22 Indexing history in Google 28

23 Problem of redundancy and SPAM 29

24 History of Google s algorithm changes 30

25 Content is the king! 31

26 What is making valueable content? Chosen question from Panda: 1. Is the content trustworthy? 2. Is the content unique? 3. Is the website trustworthy enough to left there your credit card number? 4. Would you name this page a content creator? 5. Would you add this site to favourites, recommended to a friend, share or like on FB? 32

27 5 rules to cope effectively with new algorithms 1# Solve real people problems and make their lives easier 3# Be(come) a brand 4# Become famous for your Topic 2# Engage with the users 5# Don t think short-term 33

28 Social commerce 34

29 Global popularity of social networks Share in sharing content Global penetration of social networks 52% Share in sharing ecommerce content 35

30 Do social networks support sales? From social network to online shopping 36

31 M- commerce 37

32 Marginal share in whole ecommerce value % of all sales generated through mobile channel 38

33 PC is decreasing, mobile is growing Porównanie rozkładu odsłon PC non-pc 98% 97% 96% 95% 94% 93% 92% w polskim internecie 7% maj 2012 maj % 6% 4% 3% 2% 1% 0% 39

34 BIG DATA 40

35 Buzzwords in ecommerce recommendation content is the king social Commerce benchmarking analytics segmentation BIG DATA integrated marketing programmatic media buying personalization tag managers marketing automation mcommerce 41

36 Right consumer, right offer, right channel, right moment Big data and multi-channel approach leads to better match between action, offer and consumer Aquisition Up-selling Building loyalty Największą efektywność osiąga się podejściem typu client-centric OFFER A B % % C C C % 42

37 Prime goal of BIG DATA is segmentation Low value High value LOW PROFILE YOUNG MIDDLE AGE RETIRED HIGH PROFILE NOT ENGAGED ENGAGED Cost optimisation Life cycle management Strenghtening relation Region 2 Region 1 low Life cycle high 43

38 In search for additional value Big Data let us to prepare accurate predictions in which phase consumer is and what share of his wallet is dedicated to our e-shop VALUE Cross-sell /increase of sales Value maximisation Expanding offer/recommending right products Aquisition Retention Level of consuption of particular use/segment in our eshop our e Level of total consuption of segment in category TIME 44

39 Benchmarking Analytics Key Performance Indicators + Benchmarking + Soc-Demo Profiles + Nice data presentation Choose best converting traffic Analyze sales in each and every category Identify places for improvements 45

40 First real benchmarks are already here! Fashion in Poland, January

41 First real benchmarks are already there! Fashion in Poland, January

42 First real benchmarks are already there! Fashion in Poland, January

43 First real benchmarks are already there! Fashion in Poland, January

44 Personalized recommendations 50

45 How to match specific product with specific producer? Thousends consumers equals thousends prefferences?? CUSTOMER PRODUCT?? Product recommendation helps customers to DISCOVER products catalogue and enhance them to buy more and more What results in increasing the convertion rate up to 20%! 51

46 Advanced personalized recommendation system helps with: Increasing sales volume and the shopping cart value Boosting customer loyalty and their satisfaction Identifying user needs and personalizing the offer to their requirements Running effective retargeting campaigns Tracking statistics of recommendation effectiveness Implement manual rules and adjustments 52

47 Thank you for attention! Mateusz Gordon International ecommerce Segment Manager phone: Linda Egle Country Manager in Latvia phone:

I V A N N I K K H O O

I V A N N I K K H O O I N T RODUCTION I V A N N I K K H O O 2 I N T RODUCTION I V A N N I K K H O O 3 W h a t i s E - C o m m e r c e? ˈēˌkämərs/ Noun: ecommerce commercial transactions conducted electronically on the Internet.

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