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Performance Drives Revenue: Every 100ms Matters

1) A report from Akamai found that the optimal load times to achieve peak conversion rates are 1.8 seconds for desktop and 2.7 seconds for mobile. 2) The report also found that every 100ms increase in load time results in a 1% decrease in revenue for Amazon and LinkedIn, and a 0.9% decrease in searches for MSN. 3) The report provides data to support the rule of thumb that desktop performance should be under 2 seconds and mobile performance should be under 3 seconds in order to maximize revenue.

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Parth Thakkar
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129 views

Performance Drives Revenue: Every 100ms Matters

1) A report from Akamai found that the optimal load times to achieve peak conversion rates are 1.8 seconds for desktop and 2.7 seconds for mobile. 2) The report also found that every 100ms increase in load time results in a 1% decrease in revenue for Amazon and LinkedIn, and a 0.9% decrease in searches for MSN. 3) The report provides data to support the rule of thumb that desktop performance should be under 2 seconds and mobile performance should be under 3 seconds in order to maximize revenue.

Uploaded by

Parth Thakkar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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500-600ms perf improvement

Amazon sees 1% decrease in revenue


across Microsoft Store pages resulted in
for every 100ms increase in latency
4.5% revenue improvement

LinkedIn sees 1% decrease in ad revenue


36% perf improvement to the for every 100ms increase in latency MSN improved search box
Microsoft.com Homepage generated searches by 0.9% from a
4.4% more PVs and 6.5% more clicks 200ms perf improvement

Performance Drives Revenue


Every 100ms Matters
ETSY saw a 12% increase in bounce
Google found that 500ms increase in
rate when they added 160 KB of
latency results in 20% less searches
images to their mobile page

Bing found that 250ms perf


improvement increased revenue Yahoo increased traffic by 9% for each
by $29M annually 400ms improvement in performance

Rule-of-thumb to maximize revenue


Desktop perf should be sub-2s Other industry studies may be This slide may be found at
Microsoft Confidential Mobile perf should be sub-3s found at http://wpostats.com http://aka.ms/msperf
What Level of Performance Maximizes Revenue?

• In Spring 2017, Akamai (SOASTA) published a report on the State of


Online Retail Performance to determine:
– What is the magic number for page load time that yields the highest
conversion rate?
– What is the impact of 1s of page load time improvement (or slowdown) on
conversion rate, bounce rate, and session length?

• This data can be used to set performance targets that will


maximize revenue. Summary (also see subsequent slides or full report
attached below):
– Desktop perf should be sub-2s
– Mobile perf should be sub-3s

Full Report

State of Online Retail Performance Spring 2017.pdf


Akamai Report’s Approach

Data is anonymized and


covers online retailers
worldwide (largely US)

Data spans 10 billion


user visits over 1 month
Optimal Load Times for Peak Conversion Rate

Optimal load times to achieve


peak conversion rate:
1.8s desktop, 2.7s mobile

Corroborates often used rule-of-thumb:


• Desktop perf should be sub-2s
• Mobile perf should be sub-3s
Impact of Load Time Delays on Conversion Rate
Impact of Load Time Delays on Bounce Rate
Impact of Load Time Delays on Session Length

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