Email marketing has been instrumental in driving the growth of eCommerce over the last decade. Advertisers know they can rely on email as over 80% of the emails are opened/read within 24 hours of delivery. This report highlights how marketers can significantly improve results from their email campaigns by switching from static emails to personalized email marketing that delivers highly relevant messages at the individual level.

1. State of Email Marketing
Helping marketers get more personal with today’s digital shoppers
Q4 2015

2. Email marketing has been instrumental in driving the growth of eCommerce over the last decade. Marketers are now seeing even
better results with personalized email marketing as it addresses concerns about unsolicited emails – and allows them to be more
engaging, personal and smarter at meeting consumer needs.
• Email still boasts enviable performance metrics with conversion rates up to 5x higher than social and 1.5x higher than non-
personalized display ads.
• With 2/3 of all emails now being opened on mobile, personalized email marketing is uniquely adapted to engage with
today’s device-hopping consumers.
• Email is the philosopher’s stone to cross-device tracking. The email ID is a unique identifier, and email marketing can help
advertisers better understand their customers’ cross-device behavior as they move across devices, browsers and apps.
• Personalized email is the new frontier. By partnering with the right email service provider, advertisers can automate their
email campaigns for greater efficiency while still delivering highly relevant and personalized messages to their customers.
Executive Summary
Copyright © 2015 Criteo

3. Marketers trust email to
keep consumers
engaged
#1
@

4. Email is a major
channel for
eCommerce marketing
• 205 billion emails are sent/received by
2.6 billion users every day. On average,
a user receives 88 business emails in a
day.
• One-third of the world population will be
using email by 2019. This means 2.9
billion email users sending 246 billion
emails every day in 2019.
Source: The Radicati Group, Email Statistics Report, 2015-19Copyright © 2015 Criteo
Global email users and daily email traffic, 2015-19
113 116 120 125 129
205
215
225
235
246
2.4
2.6
2.8
3
0
100
200
300
2015 2016 2017 2018 2019
Billions
Business emails sent/received per day Consumer emails sent/received per day
Email Users
2.6
2.8
2.9

5. Email marketing spend
and revenue is second
only to search
• Email marketing accounts for a
significant portion of digital marketing
spend, second only to search.
• Email marketing delivers better ROI
than search, display and social ads.
The 17% share of marketing spend on
email translates to a higher 24% share
of revenues.
Source: eTail and Criteo, Trends in Digital Retail Report, 2015Copyright © 2015 Criteo
Digital marketing spend vs. revenue generated for advertisers, 2014
Revenue contributionMarketing spend
Mobile
8%
Search
43%
Other
11%
Social
9%
Display
12%
Email
17%
Other
10%
Mobile
13%
Search
38%
Social
5%
Display
10%
Email
24%

6. Marketers use email
for both acquisition and
retention
• Email marketing is a key driver for
acquisition, and marketers rate it most
important for retention.
• In addition to sales, email marketing
also generates other important actions
from customers including registrations
inquiries, and store visits.
• Marketers also consider “retargeting”
an important channel for retention, not
just for acquisition.
Source: eTail and Criteo, Trends in Digital Retail Report, 2015Copyright © 2015 Criteo
Digital acquisition drivers
81%
Paid Search
72%
Organic Search
66%
Email Marketing
41%
Affiliates
35%
Social Media
33%
Retargeting
14%
Market Places
11%
CSE
9%
Mobile Marketing
7%
In-Store Sales & Promotions
6%
Advertising
Digital retention drivers
82%
Email Marketing
49%
Customer Service/Support
33%
Retargeting
29%
Loyalty/Rewards Programs
26%
Personalization
22%
Social Media
4%
Other
Digital acquisition and retention drivers for marketers

7. Email marketing CTRs
outperform other
channels
• Click-through rates for promotional
emails are higher than for display,
social, and search ads.
• Email usage is second only to social
networks in terms of time spent online
by users*. On average, a user spends
48 minutes on social networks and 28
minutes on email every day.
Copyright © 2015 Criteo
Click-through rates by channel, global average
0.3%
0.6%
2.3%
7.3%
0.0%
2.0%
4.0%
6.0%
8.0%
Display Social Search Email
Source: Marin Global Digital Advertising Index, 2014
*GFK/IAB Original Digital Video Consumer Study, April 2015

8. Email marketing is
highly effective at
delivering revenue
results
• For every US$1 spent on email
marketing, the average return is US$40
i.e., 2x the ROI from Internet display
advertising.
• Email marketing also results in
incremental sales. Marketers generate
incremental sales by sending
personalized offers of
related/companion products to clients
based on their recent purchase.
Source: Direct Marketing Association, 2014Copyright © 2015 Criteo
ROI per US$1 spent by channel, 2014
$40.0
$22.2
$19.7
$17.1
$7.3
Email SEO Internet
Display
Keyword Ads Catalogs
US$

9. Personalized email can
dramatically increase
customer engagement
#2

10. Use consumers’
browsing data to
deliver relevant and
personalized content
Advantages of using personalized* email
include:
• Open rates of up to 4X and click-
through rates of up to 5X higher than
non-personalized email.
• Access to real-time campaign statistics
and reporting.
• Ensure full-user transparency.
• Can help to identify users across
devices, browsers and apps.
Copyright © 2015 Criteo
How personalized* email works?
Note: Personalized Email denotes Criteo Email
Source: Criteo
1 2 3 4 5
Identification of
an “opted-in”
user via cookie.
Collection of
user’s browsing
data.
Matching of the
user with the
email partners’
databases.
Sending of the
personalized
email. Personal
data is never
stored.
Redirection of
the user back to
the website,
driving
conversions.
@

11. Personalized emails
keep consumers
interested in your
message
• Click-through rates for personalized
emails are considerably higher than for
non-personalized emails.
• Highly personalized email marketing
puts the consumer at the center and
uses dynamic content to deliver tailored
messages at the individual level. This
leads to significantly higher clicks and
conversions.
Copyright © 2015 Criteo
Click-through rates by channel, global average
7.3%
31.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Email (Non-Personalized) *Email (Personalized)
*Note: Personalized Email denotes Criteo Email
Source: Criteo, 1H 2015 and Marin Global Digital Advertising Index, 2014

12. Use responsive design
to engage consumers
across devices
• 40% of eCommerce transactions now
involve the use of multiple devices*.
28% of the time, users make their
decision on one device and then
purchase via a second device.
• With the majority of emails now being
opened on mobile, marketers must
ensure that consumers don’t find it
difficult to read and interact with the
email message on their mobile phones.
Copyright © 2015 Criteo
2/3 of all emails are opened on mobile
DESKTOP 33.0%
TABLET 16.9%
SMARTPHONE 50.1%
Smartphones + Tablets 67%
Source: Movable Ink, US Consumer Device Preference Report, Q1 2015
*Criteo State of Mobile Commerce Report, Q2 2015
@
@

13. Take benefits from high
consumer reactivity to
email
• The high consumer attention/response
to email makes it a very effective
channel for addressing the high
shopping cart and checkout
abandonment problem associated with
eCommerce.
• The rate of cart abandonment was
almost 76%, and checkout
abandonment rate was over 46% on
US eCommerce websites in Q2 2015*.
• Following up with a personalized email
to website visitors that left after adding
products to the cart can help
advertisers to win back some of those
lost sales.
Copyright © 2015 Criteo
Most emails are opened/responded within 24 hours
80%
% of emails opened in 24 hrs
50%
% of email sales in 24 hrs
Source: Criteo 1H 2015
*eMarketer (MarketLive Q2 2015, US)

14. What should you
expect from your
modern email
marketing?
#3
@

15. Get strong results at
every stage of the
conversion funnel
• The average personalized email
marketing campaign delivers 25-30%
open rate.
• The click-through rates are also
significantly higher than other channels
– including search and non-
personalized email marketing.
• Email marketing performance is
measurable – open rates and click-
through rates can be easily tracked.
Email campaigns can also be A/B
tested to determine their effectiveness.
Copyright © 2015 Criteo
Personalized email marketing KPIs, 1H 2015*
Open Rate
29%
Click-Through Rate
31%
Conversion Rate
5.1%
*Note: Personalized Email denotes Criteo Email
Source: Criteo, 1H 2015, Direct marketing Association, 2014

16. Increase online sales
by up to 30% with
personalized emails
• Conversion rates from personalized
email marketing are 5x higher than
social media and 1.5x better than
display ads.
• The conversion rates for advertisers
improve significantly, particularly when
they send personalized emails to
existing customers who visited their
website.
Copyright © 2015 Criteo
Conversion rates by channel, global average 1H 2015
1.0%
3.1%
7.5%
3.5%
5.1%
0.0%
2.0%
4.0%
6.0%
8.0%
Social Display Search Non-Personalized
Email
*Personalized
Email
*Note: Personalized Email denotes Criteo Email
Source: Criteo 1H 2015 and Marin Global Digital Advertising Index 2014

17. Achieve impressive
KPIs across different
industry verticals
• Regardless of the industry vertical or
value of the product/service, majority of
eCommerce transactions involve the
use of email communication with the
customers at some point in the buying
process.
• A key advantage with emails is that,
once downloaded, consumers can read
them in the absence of Internet
connectivity.
Copyright © 2015 Criteo
Personalized email marketing KPIs by industry vertical*
Average Open
Rate
Average Click-through
Rate
Average Conversion
Rate
Fashion 24% 31% 5.7%
Travel 36% 32% 3.8%
Beauty 26% 35% 3.4%
High-Tech 34% 30% 2.4%
Automobile 27% 37% 2.0%
Classified 38% 38% 4.2%
*Note: Personalized email denotes Criteo Email
Source: Criteo, 1H 2015

18. Act now,
don’t be left behind
#4
@

19. Consider email
personalization as a
top priority
• Improving the level of email
personalization and marketing
automation are now top priorities for
many marketers.
• Replacing existing email service
provider is also a high priority as
marketers want partners that can
analyze consumers’ browsing history to
deliver highly personalized emails.
Copyright © 2015 Criteo
Top marketing technology priorities for marketers in 2015
20%
Increasing level of personalization in email
16%
Increasing use of marketing automation
13%
Replacing email service provider
12%
Deploying on-site personalization
9%
CRM Systems/Customer Loyalty Programs
8%
User Experience Testing & Analytics
6%
SEM/SEO
5%
Replatforming and New Websites
10%
Other
Source: eTail and Criteo, Trends in Digital Retail Report, 2015

20. Improve customer
segmentation and
targeting capabilities
• Email marketing usage is shifting away
from sending out email blasts to
delivering dynamically created
personalized messages.
• Improving customer segmentation and
targeting, and using data/analytics has
become extremely important to support
the growing preference for marketing
automation.
Copyright © 2015 Criteo
Email marketing priorities for US marketers in 2015
Source: The Relevancy Group, “The Relevancy Ring: ESP Buyer’s Guide 2015”
35%
Improving segmentation and targeting
33%
Increasing use of analytics
33%
Utilizing real-time data
30%
Improving email inbox delivery
29%
Centralizing customer data and making it actionable

21. Be compliant with
country specific email
marketing regulations
• Privacy standards and compliance to
anti-spam laws are necessary to ensure
that users are in control of the emails
they receive, and they can easily opt-
out, should they prefer to do so.
• Marketers must get clear consent from
users on the content they would like to
receive, and how often.
• Despite the need to adapt to each
country’s privacy standards,
personalized email marketing delivers
considerable uplift in performance
compared to non-personalized email
campaigns.
Copyright © 2015 Criteo
Email marketing privacy standards
User gives permission
for receiving marketing
emails
Not required,
users can opt-out
Opt-out
for Advertisers
Advertiser Not required
User opt-in required
for receiving
marketing emails
Implicit user
consent, opt-in is
not required
Opt-out from
Publisher
Advertiser or
Advertiser by
Publisher
Required
Double opt-in required
for receiving marketing
emails, and additional
opt-in needed to receive
personalized marketing
content
Implicit user
consent, opt-in is
not required
Opt-out from
Publisher
Publisher Required
US
UK, France
Germany
Source: Criteo

22. Conclusion and recommendations
Copyright © 2015 Criteo
Email continues to outperform most other marketing channels and is also helping marketers become smarter at meeting consumer
needs. The following best practices will help marketers get better results from their email campaigns:
• Consider email as a critical engagement service to deliver personalized messages to optimize customer lifetime value, and not merely as a sales
tool.
• Ensure your email looks great on all devices. Integrate responsive design in the email template to account for cross-device usage and the
increasing shift to mobile.
• Use marketing automation to send timely and relevant emails based on consumers’ behavior, and use it beyond cart/checkout abandonment to
all website traffic.
• Make sure your email service provider can enable you to comply with the diverse country/region specific anti-spam laws and privacy
standards for consent, cookie dropping, list management, etc.
What does the future hold? Personalized email marketing requires data-driven insights on customers to be able to create tailored messages at the
individual level. In the future, marketers therefore will have to increasingly invest and rely on marketing automation technologies, combined with best of
breed data analysis capabilities to harvest actionable insights.

23. This and other Criteo reports can be found at:
www.criteo.com/resources
Criteo delivers personalized performance marketing at an extensive scale.
Measuring return on post-click sales, Criteo makes ROI transparent and easy to
measure. Criteo has over 1,700 employees in 27 offices across the Americas,
Europe and Asia-Pacific, serving over 9,250 advertisers worldwide with direct
relationships with over 11,000 publishers.
Criteo ads reach over 1 billion unique Internet users (comScore, March 2015).
About Criteo