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Transforming Experiences
Across the Omnichannel
Dr. Tom Leighton, CEO and
Co-Founder, Akamai Technologies
1 in 4    Grow revenue opportunities with fast,
                                                      personalized web experiences and manage
                                              visits to a
                                                      complexity from peak demand, mobile devices
                                            U.S. retail site
                                                      and data collection.

                                            today is from
                                            a smartphone


Source: IBM Digital Analytics Benchmark,
November 2012

                                           ©2013 AKAMAI | FASTER FORWARDTM
Massive Growth Predicted

                                                                                                 60.6%
                                                                                         53.2%

                                                                         39%

                                                       24.6%

                                      13.4%
                     3.8%


                     2010              2011             2012             2013            2014    2015


               Smartphones will account for over 50% of North
              American visits to a Commerce site within 2 years

Source: Mobile Traffic to the Top 500 North American E-Retailers, Branding Brand, 2012

                                                ©2013 AKAMAI | FASTER FORWARDTM
What Mobile Users Want

         Ability to Purchase or
                 Place an order
                                                                               50%

            Product Information                                                      61%

 Store Contact Information                                                      54%

              Store Directions or
                Operating Hours                                                            74%

               Sites Loading in 5
                                                                                            81%
                Seconds or Less

Source: Google and Sterling Commerce, 2012

                                             ©2013 AKAMAI | FASTER FORWARDTM
Keynote Commerce Index: Desktop vs. Mobile



Top 30 Desktop Commerce Sites                Top 30 Mobile Commerce Sites


                     Seconds                                           Seconds
                                  Avoid data theft and downtime by extending the
                     to load                                           to load
                                  security perimeter outside the data-center and
             We haven't seen      protect from increasing frequency, scale and
                                  sophistication of web attacks.

               9 seconds
              since 2001!

                       ©2013 AKAMAI | FASTER FORWARDTM
The Performance Challenge
  Time to Download




                     Heavier    Chatty      Inefficient      3rd Party     Mobile
                     Content   Protocols    Web Code         Content     Congestion



                                     ©2013 AKAMAI | FASTER FORWARDTM
Challenge: Mobile Internet Access is SLOW because…




…the mobile network architecture was not designed for the Web


                      ©2013 AKAMAI | FASTER FORWARDTM
Speed Matters: Abandonment Rates

                                 30
               Abandonment Rate (%)
               Abandonment Rate (%)
                                 25

                                 20

                                 15

                                 10

                                      5

                                      0
                                          0   1   2   3    4    5    6   7   8   9   10     11   12 13 14 15
                                                                    Page Load Time (sec.)



                                              Slower pages = higher abandonment
          • Reduces revenue                                    • Increases costs                 • Damages brand



Source: Gomez Real User Monitoring

                                                          ©2013 AKAMAI | FASTER FORWARDTM
Speed Matters: Conversion Rates


                                                 POPULATION PERCENTAGE                  CONVERSION PERCENTAGE



CONVERSION
RATE VERSUS
LOAD TIME




                 0−1      1−2     2−3      3−4     4−5        5−6   6−7   7−8   8−9   9−10   10−11 11−12 12−13 13−14 14−15   >15


                                                                    LOAD TIME (SECONDS)




              Page Performance & Site Conversion – Feb 2012



                                              ©2013 AKAMAI | FASTER FORWARDTM
Akamai has a Solution: Aqua Ion
                                                                              Local ISP / Mobile
    Customer Infrastructure          Akamai Intelligent Platform™             Network Operator




                                     Akamai Optimizations

         First Mile                        Middle Mile                          Last Mile
•   Traffic Offload            •    Akamai Routing Protocol          •   Adaptive Image Compression
•   Connection Offload         •    Akamai Communication Protocol    •   Above-the-fold Prioritization
•   Persistent Connections     •    Akamai Compression               •   JavaScript Rescheduling
•   Attack Traffic Filtering   •    Akamai Pre-Fetching              •   Content Pre-Fetching
                                   ©2013 AKAMAI | FASTER FORWARDTM
Deliver Better Experiences To Mobile Users
                               DSA      Aqua Ion
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
        1   2   3   4      5     6     7     8     9      10   11   12 13 14 15+
                                     Seconds

                        ©2013 AKAMAI | FASTER FORWARDTM
Deliver Better Experiences To Mobile Users
                               DSA      Aqua Ion
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
        1   2   3   4      5     6     7     8     9      10   11   12 13 14 15+
                                     Seconds

                        ©2013 AKAMAI | FASTER FORWARDTM
It’s not just about
 your mobile site Grow revenue opportunities with
                  fast, personalized web experiences and
                  manage complexity from peak demand, mobile
                  devices and data collection.


             89% use smartphones
  +          while shopping in stores


       Source: Ipsos OTX/Google, Nielsen


      ©2013 AKAMAI | FASTER FORWARDTM
In-Store Uses of Mobile Devices



                                                     Navigation
                                                     Promos
                                                        Information
                                                        Checkout
           Mobile Alert             X                  Find products easily
                                                     Help your customers
                                   X                       QR codes
        Head on over to                                    Simple, fast,
                                                     find your products
                                                           for immediate
        aisle 18 to take
                                                           one-click checkout
                                                     and take advantage
       Navigation      Promos
                                                           information Checkout
                                                     of special promotions
                                                      Information
        advantage of
        a $100 instant
        savings coupon!
     Omnichannel shoppers spend 71%
     more than single channel consumers*

Source: Guardian.co.uk; Deloitte

                                        ©2013 AKAMAI | FASTER FORWARDTM
Engaging Omnichannel Consumers is Key



                                                       8X                   “Shoppers who shop on
                                                                            our website as well as in our
                                                                            stores spend four times as
                                                                            much; throw smartphones
                                                                            into the mix and they spend
                                                                            eight times as much”
                                     4X                                     — Laura Wade-Gery,
                                                                            Executive Director, Multi-channel
                                                                            E-commerce, Marks & Spencer

               1X
          1 Channel                2 Channels      3 Channels



Source: Guardian.co.uk; Deloitte

                                          ©2013 AKAMAI | FASTER FORWARDTM
Stores Are Moving Online



“The next five years
will bring more change
to retail than the last
100 years.”
— Cyriac Roeding, CEO, Shopkick




                           ©2013 AKAMAI | FASTER FORWARDTM
Stores Are Moving Online



THE CHALLENGE:
Cost and
Performance




                   ©2013 AKAMAI | FASTER FORWARDTM
Akamai is Developing a Solution




                                          Akamai software in the store
                                          optimizes performance and
                                            offloads last mile pipes




                   ©2013 AKAMAI | FASTER FORWARDTM
Optimizing the Retail Store Experience

                                                     With Akamai Hybrid
      Without Akamai
                                                     Cloud Optimization

                   Seconds                                         Second
                   to load                                         to load




                                                  <
 BETA AVAILABILITY SCHEDULED JULY 1, 2013

                       ©2013 AKAMAI | FASTER FORWARDTM
Possible Future Channels: Shopping Walls




                   ©2013 AKAMAI | FASTER FORWARDTM
Possible Future Channels: Couch Commerce




                                    “Couchtablet owners
                                    88% of Commerce”
                                      Imagine if product
                                       use their device
                                     placementthan you
                                      is closer becomes
                                        “click to buy”
                                      while watching TV
                                           may think




                  ©2013 AKAMAI | FASTER FORWARDTM
Participate in the “Couch Commerce” Demo




    www.akamai.com/couchcommerce
                  ©2013 AKAMAI | FASTER FORWARDTM
Best Practices to Maximize
  the Omnichannel Opportunity


• Make it fast regardless
  of touchpoint

• Take advantage of
  opportunities afforded
  by simultaneous use
  of multiple channels

• Engage in-store shoppers
  with quality digital
  experiences

                      ©2013 AKAMAI | FASTER FORWARDTM
Please visit the Akamai Booth

                   #506 & 508
                                Grow revenue opportunities with
                                fast, personalized web experiences and
Live Mobitest       See the “Couch
                                manage complexity“Retail’s Omnichannel
                                          Pick up from peak demand, mobile
   Demos           Commerce” Demo
                                devices and data collection.Whitepaper
                                              Imperative”




    Find out why 96 of the top 100 retailers
      trust Akamai to accelerate their sites

                         ©2013 AKAMAI | FASTER FORWARDTM
Q&A        Grow revenue opportunities with
           fast, personalized web experiences and
           manage complexity from peak demand, mobile
           devices and data collection.




©2013 AKAMAI | FASTER FORWARDTM
Grow revenue opportunities with
           fast, personalized web experiences and
           manage complexity from peak demand, mobile
           devices and data collection.




©2013 AKAMAI | FASTER FORWARDTM

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Etail West 2013 Akamai CEO Tom Leighton_Final

  • 1. Transforming Experiences Across the Omnichannel Dr. Tom Leighton, CEO and Co-Founder, Akamai Technologies
  • 2. 1 in 4 Grow revenue opportunities with fast, personalized web experiences and manage visits to a complexity from peak demand, mobile devices U.S. retail site and data collection. today is from a smartphone Source: IBM Digital Analytics Benchmark, November 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 3. Massive Growth Predicted 60.6% 53.2% 39% 24.6% 13.4% 3.8% 2010 2011 2012 2013 2014 2015 Smartphones will account for over 50% of North American visits to a Commerce site within 2 years Source: Mobile Traffic to the Top 500 North American E-Retailers, Branding Brand, 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 4. What Mobile Users Want Ability to Purchase or Place an order 50% Product Information 61% Store Contact Information 54% Store Directions or Operating Hours 74% Sites Loading in 5 81% Seconds or Less Source: Google and Sterling Commerce, 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 5. Keynote Commerce Index: Desktop vs. Mobile Top 30 Desktop Commerce Sites Top 30 Mobile Commerce Sites Seconds Seconds Avoid data theft and downtime by extending the to load to load security perimeter outside the data-center and We haven't seen protect from increasing frequency, scale and sophistication of web attacks. 9 seconds since 2001! ©2013 AKAMAI | FASTER FORWARDTM
  • 6. The Performance Challenge Time to Download Heavier Chatty Inefficient 3rd Party Mobile Content Protocols Web Code Content Congestion ©2013 AKAMAI | FASTER FORWARDTM
  • 7. Challenge: Mobile Internet Access is SLOW because… …the mobile network architecture was not designed for the Web ©2013 AKAMAI | FASTER FORWARDTM
  • 8. Speed Matters: Abandonment Rates 30 Abandonment Rate (%) Abandonment Rate (%) 25 20 15 10 5 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Page Load Time (sec.) Slower pages = higher abandonment • Reduces revenue • Increases costs • Damages brand Source: Gomez Real User Monitoring ©2013 AKAMAI | FASTER FORWARDTM
  • 9. Speed Matters: Conversion Rates POPULATION PERCENTAGE CONVERSION PERCENTAGE CONVERSION RATE VERSUS LOAD TIME 0−1 1−2 2−3 3−4 4−5 5−6 6−7 7−8 8−9 9−10 10−11 11−12 12−13 13−14 14−15 >15 LOAD TIME (SECONDS) Page Performance & Site Conversion – Feb 2012 ©2013 AKAMAI | FASTER FORWARDTM
  • 10. Akamai has a Solution: Aqua Ion Local ISP / Mobile Customer Infrastructure Akamai Intelligent Platform™ Network Operator Akamai Optimizations First Mile Middle Mile Last Mile • Traffic Offload • Akamai Routing Protocol • Adaptive Image Compression • Connection Offload • Akamai Communication Protocol • Above-the-fold Prioritization • Persistent Connections • Akamai Compression • JavaScript Rescheduling • Attack Traffic Filtering • Akamai Pre-Fetching • Content Pre-Fetching ©2013 AKAMAI | FASTER FORWARDTM
  • 11. Deliver Better Experiences To Mobile Users DSA Aqua Ion 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ Seconds ©2013 AKAMAI | FASTER FORWARDTM
  • 12. Deliver Better Experiences To Mobile Users DSA Aqua Ion 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15+ Seconds ©2013 AKAMAI | FASTER FORWARDTM
  • 13. It’s not just about your mobile site Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. 89% use smartphones + while shopping in stores Source: Ipsos OTX/Google, Nielsen ©2013 AKAMAI | FASTER FORWARDTM
  • 14. In-Store Uses of Mobile Devices Navigation Promos Information Checkout Mobile Alert X Find products easily Help your customers X QR codes Head on over to Simple, fast, find your products for immediate aisle 18 to take one-click checkout and take advantage Navigation Promos information Checkout of special promotions Information advantage of a $100 instant savings coupon! Omnichannel shoppers spend 71% more than single channel consumers* Source: Guardian.co.uk; Deloitte ©2013 AKAMAI | FASTER FORWARDTM
  • 15. Engaging Omnichannel Consumers is Key 8X “Shoppers who shop on our website as well as in our stores spend four times as much; throw smartphones into the mix and they spend eight times as much” 4X — Laura Wade-Gery, Executive Director, Multi-channel E-commerce, Marks & Spencer 1X 1 Channel 2 Channels 3 Channels Source: Guardian.co.uk; Deloitte ©2013 AKAMAI | FASTER FORWARDTM
  • 16. Stores Are Moving Online “The next five years will bring more change to retail than the last 100 years.” — Cyriac Roeding, CEO, Shopkick ©2013 AKAMAI | FASTER FORWARDTM
  • 17. Stores Are Moving Online THE CHALLENGE: Cost and Performance ©2013 AKAMAI | FASTER FORWARDTM
  • 18. Akamai is Developing a Solution Akamai software in the store optimizes performance and offloads last mile pipes ©2013 AKAMAI | FASTER FORWARDTM
  • 19. Optimizing the Retail Store Experience With Akamai Hybrid Without Akamai Cloud Optimization Seconds Second to load to load < BETA AVAILABILITY SCHEDULED JULY 1, 2013 ©2013 AKAMAI | FASTER FORWARDTM
  • 20. Possible Future Channels: Shopping Walls ©2013 AKAMAI | FASTER FORWARDTM
  • 21. Possible Future Channels: Couch Commerce “Couchtablet owners 88% of Commerce” Imagine if product use their device placementthan you is closer becomes “click to buy” while watching TV may think ©2013 AKAMAI | FASTER FORWARDTM
  • 22. Participate in the “Couch Commerce” Demo www.akamai.com/couchcommerce ©2013 AKAMAI | FASTER FORWARDTM
  • 23. Best Practices to Maximize the Omnichannel Opportunity • Make it fast regardless of touchpoint • Take advantage of opportunities afforded by simultaneous use of multiple channels • Engage in-store shoppers with quality digital experiences ©2013 AKAMAI | FASTER FORWARDTM
  • 24. Please visit the Akamai Booth #506 & 508 Grow revenue opportunities with fast, personalized web experiences and Live Mobitest See the “Couch manage complexity“Retail’s Omnichannel Pick up from peak demand, mobile Demos Commerce” Demo devices and data collection.Whitepaper Imperative” Find out why 96 of the top 100 retailers trust Akamai to accelerate their sites ©2013 AKAMAI | FASTER FORWARDTM
  • 25. Q&A Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. ©2013 AKAMAI | FASTER FORWARDTM
  • 26. Grow revenue opportunities with fast, personalized web experiences and manage complexity from peak demand, mobile devices and data collection. ©2013 AKAMAI | FASTER FORWARDTM

Editor's Notes

  1. 2 main themes - online/mobile (AIM), omnichannel and mobile in store, new channels emergingMovement to Mobile - access to app and site as it’s own channel, performance problem, RUM data, aqua ion mobileShopping behavior is changing (omnichannel – store and mobile), channels are mixingPlaces demand on good experience in store, store needs to be connectedExpensive to get bandwidth and is congested which makes for poor experienceBig sky and how akamai addresses the storeFutures new emerging channels – wall scan and opportunity for couch commerce, demo.
  2. IBM-       Mobile shoppers: 24 percent of consumers using a mobile device to visit a retailer&apos;s site, up from 14.3 percent in 2011Today&apos;s news is based on findings from the IBM Digital Analytics Benchmark, the industry’s only cloud-based Web analytics platform that tracks more than a million e-commerce transactions a day, analyzing terabytes of raw data from 500 retailers nationwide. 
  3. Smartphones will account for over 50% of visits to a commerce site within 2 years. Mcommerce will nearly triple over the next 3 years.Source for Mobile Commerce graph: http://www.emarketer.com/newsroom/index.php/mcommerce-sales-grow-91-67-billion-2011/
  4. Google, Amazon, Staples all prioritize performance above functionalityUSERS prioritize performance above functionality too!
  5. According to the Keynote Commerce Index the Top 30 desktop commerce sites 2 seconds to load (http://www.keynote.com/keynote_competitive_research/performance_indices/top_retailers/index.html)Top 30 mobile commerce sites take 9.18 seconds to load with lower availability (February 2013) http://www.keynote.com/keynote_competitive_research/performance_indices/mobile/retail/index.htmlNothing coming besides LTE in 3 years that starts to address the slow mobile network problem. We are starting now to address
  6. lots of forces are working to slow down your web site…High latency/low bandwidthSame CPU/RAM for iphone/ipad – slow JS – too many requests, too much content, slow rendering (e.g. click on touch delay of 300ms) mostly same issues as for web performanceNow you need to deliver exceptional experiences in a variety of situationsDelivering fast, high quality experiences is difficultIf we look at these rich experiences/apps you can start to see that they are complex (JS, images, requests)And its not only web sites anymore – its web experiences such as native applications that communicate over http/httpsEnd-users expect quality experiences across all these touchpoints
  7. Built for voice71% of users expect sites to load as fast or faster than on a desktop (Gomez)
  8. So mobile traffic is coming, growth predictions are massive for traffic and revenue, and performance is top of mind. With clear correlation in mobile load times and abandonment (just like desktop), there is huge opportunity to maximize mobile traffic &amp; revenue by optimizing user experiences on mobile devices and situations.
  9. Now, we’ve all seen the business metrics that tie conversions to performance. Walmart did a fantastic job of documenting this through RUM methodologies.Baseline − 1 in 2 site visits had response time &gt; 4 secondsSharp decline in conversion rate as average site load time increases from 1 to 4 secondsOverall average site load time is lower for the converted population (3.22 Seconds) than the non-converted population (6.03 Seconds)
  10. IP/Routing Optimizations-Dynamic Mapping-SureRoute Path Optimization-Enhanced Akamai Protocol-IPv6 Adaptation TCP/Transport Optimizations-Automated Failover-Connection Offload-Transport Optimization HTTP/Protocol Optimizations-Edge Caching-Data Compression-Origin Offload-Dynamic Page Caching-Akamai Instant-HTTP Pipelining-Mobile Detection and Redirect-Device Characterization HTML/Presentation Optimizations-Embedded Object Prefetching-Adaptive Image Compression-Front-End Optimization (FEO)A Cloud service built on the Akamai Intelligent Platform, 119,000+ servers in over 2000 locations in 80+ countries designed to speed up mobile delivery by reducing round trips and latency through introducing performance optimization and intelligenceMobile TCP OptimizationsNetwork settings tolerant of latency and data retransmission in MNOMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayAdaptive Image CompressionConsistent experience across varied network performanceDevice CharacterizationRespond to specific device capabilitiesMobile Detection &amp; RedirectRedirections issued from the Edge, with device DB managed by AkamaiHTTP PipeliningMaximize TCP connections to devices with limited resourcesMobile Network MapReduce distance to MNO IP GatewaysDynamic Site AccelerationMiddle mile optimizationMobile CachingCaching close to the MNO IP GatewayThe Akamai Intelligent Platform forms the basis of delivery for Aqua Ion Mobile. This globally-distributed cloud platform continuously pulls and caches fresh content from web servers onto servers that are closer to the “gateway nodes” that serve as the on-ramp between the public Internet and private mobile carrier networks. Akamai’s dynamic mapping system directs user requests for mobile application data and mobile Web sites to an optimal Akamai Edge server. Then, through route optimization, we identify the fastest, most reliable path back to the data center serving dynamic and interactive content to mobile users. The maps increase the low level DNS TTL from 20s to 360s. By increasing the LLDNS TTL, availability will be impacted when a whole region that the user is connected to becomes unavailable. By increasing the LLDNS TTL, performance mobile networks when slow is significantly increased by reducing the number of DNS refreshes for the domain. Any request, DNS or HTTP, will invoke a long network latency during slow network times.Lower the initial retransmit timeout (RTO) value, timeout_init to 500ms for both edge-to-user and edge-to-originLower the maximum retransmit timeout value: rto_max to 1s for both edge-to-user and edge-to-originEnable TCP double SYN - In a lossy network, we don&apos;t need to wait if the SYN is lost, instead we send the SYN twice reducing the chance of loss.
  11. The Web has fundamentally changed how people research and buy. Customers don’t interact with companies from a “channel” perspective anymore; they now use a rapidly evolving set of devices and paths to engage with retailers across touchpoints, which they don’t distinguish from the brand or business.
  12. The Omnichannel Consumer is More Valuable
  13. more than 20%of all e-commerce shopping sessions are already happening on mobile devices – and that number is growing by 2-3x each year. Over the next 18–36 months, mobile will comprise more than 50%of all e-commerce shopping sessions, becoming the primary way people shop online (http://www.forbes.com/sites/ericsavitz/2012/10/03/how-mobile-devices-will-shake-up-the-e-commerce-business/)65% of mobile users prefer a download speed below 4 seconds (http://blogs.keynote.com/mobility/)
  14. According to the Keynote Mobility Survey, 48% of smartphone users experienced a problem with loading errors and the inability to open the page
  15. Page Load Times:8 seconds without Big SkyLess than 1 second with Big Sky The user experience has increased dramatically because things are running more efficiently Value Proposition: Giving customers 3X as much, for 1/3 of the price
  16. Explainwi-fi troubles in building…How does it work?Did I buy it?Implications of new business models…Is it available today?
  17. Find out why 96 of the top 100 retailers work with Akamai to accelerate their sites