Retail Get more out of your mobile campaigns
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1 Retail Get more out of your mobile campaigns
2 It s all about providing the convenience of being able to shop and pick up products when they want, where they want. Mobile is at the nucleus of this change. Prat Vemana VP of e-commerce, product management, and customer experience, Staples
3 Table of contents Mobile user behavior trends: Retail The shift of retail advertising spend Mobile influences the path-to-purchase journey Bing Network marketplace performance trends Recommendations
4 Mobile changes consumers shopping behavior
5 More than 4 in 5 50% 26% smartphone and tablet owners are using a mobile device for shopping activities.¹ of mobile users say they browse the internet more because of mobile devices. of smartphone users (plus 35% of tablet users) do more shopping because of mobile devices.² 1. The Digital Consumer, Nielsen Company, Feb Shopper Sciences Study, 2012.
6 The four C s of m-commerce Control Convenience Convert* Commerce 1. Ipsos MediaCT, Purchased, and Google, Understanding Consumer s Local Search Behavior, xad/telmetrics mobile path to purchase study, *Conversion include calls, store visits, and purchases across screens. 3. Microsoft Research, Telmetrics mobile path to purchase study, emarketers, Apr 2014
7 The shift of retail advertising spend
8 The biggest priority area for retailers in 2015 is mobile. Forrester for Shop.org Source: The State Of Retailing Online 2015, a Shop.org study conducted by Forrester Research, Feb 2015
9 Website redesign to optimize for small screens tops the list. What are your top three initiatives and priorities for your online business in 2015? Mobile 58% Larger search marketing budget in addition to branding and loyalty program. Omnichannel efforts Marketing 38% 45% Source: The State Of Retailing Online 2015, a Shop.org study conducted by Forrester Research, Feb 2015
10 Mobile influences the path-to-purchase journey
11 Find store locations Check price, validate purchase while at store Where are you located when you use a smartphone to access shopping-related info? At home 84% Research before purchase Purchase Getting somewhere In store 36% 51% While waiting in line 46% Source: Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014
12 Consumer behavior however Retail impressions grew 103% on smartphones and -20% on desktops.¹ Clicks on smartphones grew 41% while remaining constant on desktops.¹ Many smartphone users choose to make purchases on their PCs because they say: it s fast, trustworthy, and uncomplicated Bing Ads internal data, April Sept Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014.
13 When advertisers were asked: Does having paid search presence across all screens impact consumer behavior? Very much Somewhat 1% 99% agreed that having a paid search presence across devices makes an impact on consumer conversion. Not impacted Source: Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014
14 Based on study of 53 websites and 180 million online sessions Conversion rate for smartphone shoppers on mobile-optimized sites is 160% higher than the rate on non-optimized sites. Average order value on smartphones on mobile-optimized sites is 102% of the average order value for shoppers on PCs of those same retailers desktop sites; that number drops to 70% on sites that are not optimized for mobile. 1. Internet Retailers, Oct 2014
15 Bing Network marketplace performance trends: Retail
16 Mobile Query Share March '14 Mobile Query Share March '15 23% 30% 77% 70% All Devices Mobile All Devices Mobile Source: Bing Ads Internal Data
17 260% growth in mobile clicks delivered for Retail over two years Source: Bing Ads Internal Data
18 February March April May June July August September October November December January February Retail (all up) impressions and clicks (February 2014 to February 2015) Impressions and clicks on smartphones are growing at a faster pace than on other devices. Impressions Average share of total clicks PC+Tablet 85% Mobile 15% Mobile PC + Tablet Mobile trend PC+Tablet trend Mobile impressions are growing at a monthly average rate of 10%, compared to 2% for PC+Tablet. Mobile clicks account for 15% of total clicks across all devices. Source: Bing Ads internal data. Bing Network, US, O&O and syndication
19 Retail (all up) CTR and CPC (October 2014 to February 2015) CTR October November December January February $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 CPC October November December January February Mobile PC + Tablet Mobile PC + Tablet Increase bid adjustments on mobile to capture user engagement. Advertisers pay roughly 60% of the CPC cost on PC or tablet. Source: Bing Ads internal data, Bing Network O&O, US
20 Home & Garden Apparel & Accessories Mass Merchants Department Stores
21 February March April May June July August September October November December January February (February 2014 to February 2015) Impressions and clicks on smartphones are growing at a faster pace than on other devices. Impressions Average share of total clicks PC+Tablet 86% Mobile 14% Mobile PC + Tablet Mobile trend PC+Tablet trend Mobile impressions are growing at a monthly average rate of 9%, compared to 4% for PC+Tablet. Mobile clicks account for 14% of total clicks across all devices. Source: Bing Ads internal data. Bing Network, US, O&O and syndication
22 (October 2014 to February 2015) 6.50 % 6.30 % 6.10 % 5.90 % 5.70 % 5.50 % 5.30 % 5.10 % 4.90 % 4.70 % 4.50 % October November December January February $0.90 $0.85 $0.80 $0.75 $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 October November December January February Mobile PC + Tablet Mobile PC + Tablet Source: Bing Ads internal data, Bing Network O&O, US
23 February March April May June July August September October November December January February (February 2014 to February 2015) Impressions and clicks on smartphones are growing at a faster pace than on other devices. Impressions Average share of total clicks PC+Tablet 81% Mobile 19% Mobile PC + Tablet Mobile trend PC+Tablet trend Mobile impressions are growing at a monthly average rate of 12%, compared to 4% for PC+Tablet. Mobile clicks account for 19% of total clicks across all devices. Source: Bing Ads internal data. Bing Network, US, O&O and syndication
24 (October 2014 to February 2015) CTR CPC 9.25 % $ % 8.25 % 7.75 % $0.60 $0.55 $0.50 $ % 6.75 % 6.25 % $0.40 $0.35 $0.30 $ % October November December January February $0.20 October November December January February Mobile PC + Tablet Mobile PC + Tablet Increase bid adjustments on mobile to capture user engagement. Advertisers pay roughly 50% of the CPC cost on PC or tablet. Source: Bing Ads internal data, Bing Network O&O, US
25 February March April May June July August September October November December January February (February 2014 to February 2015) Impressions and clicks on smartphones are growing at a faster pace than on other devices. Impressions Average share of total clicks PC+Tablet 81% Mobile 19% Mobile PC + Tablet Mobile trend PC+Tablet trend Mobile impressions are growing at a monthly average rate of 7%, compared to 1% for PC+Tablet. Mobile clicks account for 19% of total clicks across all devices. Source: Bing Ads internal data. Bing Network, US, O&O and syndication
26 (October 2014 to February 2015) CTR CPC 5.50 % $ % $ % 4.00 % 3.50 % 3.00 % $0.27 $0.25 $0.23 $0.21 $ % $ % October November December January February $0.15 October November December January February Mobile PC + Tablet Mobile PC + Tablet Increase bid adjustments on mobile to capture user engagement. Advertisers pay roughly 70% of the CPC cost on PC or tablet. Source: Bing Ads internal data, Bing Network O&O, US
27 February March April May June July August September October November December January February Department Stores impressions and clicks (February 2014 to February 2015) Impressions Average share of total clicks PC+Tablet 86% Mobile 14% Mobile PC + Tablet Mobile trend PC+Tablet trend Mobile impressions are growing at a monthly average rate of 13%, compared to 4% for PC+Tablet. Mobile clicks account for 14% of total clicks across all devices. Source: Bing Ads internal data. Bing Network, US, O&O and syndication
28 (October 2014 to February 2015) CTR CPC % $ % 9.00 % 8.50 % 8.00 % $0.45 $0.40 $ % $ % 6.50 % 6.00 % 5.50 % $0.25 $0.20 $ % October November December January February $0.10 October November December January February Mobile PC + Tablet Mobile PC + Tablet Increase bid adjustments on mobile to capture user engagement. Advertisers pay roughly 60% of the CPC cost on PC or tablet. Source: Bing Ads internal data, Bing Network O&O, US
29 Retail query trend During the week As consumers leave work, their search behavior shifts to mobile devices peaking around 8PM. Weekend Query volume remains high throughout the day and also peaks around 8PM. Mobile PC Tablet Optimize mobile budget allocation for after work hours to maximize reach. Spread budget more evenly on the weekends. Source: Bing Ads internal data July 2013 June 2014
30 Recommendations
31 To catch the right audience, advertisers need to advertise at the right time with the right channel.
32 Use the mobile bid modifier to adjust budget allocation Targeting selection Bing Ads Unified across devices Google AdWords Unified across devices Desktop Not available Not available Bid modifiers Tablet -20% to +300%* Not available Mobile -100% to +300% -100% to +300% If mobile URLs Yes Yes Mobile Preference Yes Yes
33 Tweak bid adjustments to secure ad position 1 and 2 PC: 108% drop in CTR from position 1 to position 2 Smartphone: 116% drop in CTR from position 1 to position 2 Tablet: 76% drop in CTR from position 1 to position 2 5% 5.2% 5.1% 2.9% 2.4% 2.4% 2.1% 1.7% 1.9% 1.3% 1.3% 1% Tweak bid adjustments to secure ad position 1 and position 2 spots. Location, location, location applies here too. Computers Smartphones Tablets Source: Marin Software; 2014 Annual Report
34 Bing Ads mobile extensions SITELINK EXTENSIONS CALL EXTENSIONS LOCATION EXTENSIONS APP EXTENSIONS LOCATION TARGETING
35 Multiple extensions drive greatest engagement with mobile ads Maximize ad footprint and consumer s attention Multiple Extensions No Extensions Source: Microsoft eye-tracking study
36 If you have a brick and mortar store: Location Extensions drive foot and web traffic +15% CTR lift for campaigns with Location Extensions 76% of smartphone searchers used a store locator or location extension to help them find and visit a local store Source: Nielsen, The Digital Consumer Report, 2014
37 E-Commerce sites: Sitelink Extensions drive deeper site engagement +10% 15% CTR for campaigns with Sitelink Extensions Use Sitelink Extensions to feature: Deals Locations Products/offers Social channels Mobile content
38 Click-to-call drives engagement across online and offline stores 15% 25% lift in CTR for campaigns with click-to-call Top reasons for calling from search results 1 52% Check business hours 51% Schedule appointment/ make reservation 47% Check product availability 1. Search Engine Land, Study: 61 Percent Of Mobile Callers Ready To Convert, Sep 24, 2013
39 App Extensions: driving app discovery and download Extensions are automatically targeted to correct OS and app store Drive downloads: Promote app downloads with Bing Ads on mobile tablet and PC Automatic device targeting: Automatically targeted to each user s device/os; links directly to App Store, Google Play or Windows Store Actionable reporting: Measure installs of and engagement with mobile app
40 Mobile-optimized websites drive higher conversion rates Based on study of 53 websites and 180 million online sessions Conversion rate for smartphone shoppers on mobile-optimized sites is 160% higher than the rate on non-optimized sites. Average order value on smartphones on mobile-optimized sites is 102% of the average order value for shoppers on PCs of those same retailers desktop sites; that number drops to 70% on sites that are not optimized for mobile. 1. Internet Retailers, Oct 2014
41 Thank You
42 2016 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted as a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. Microsoft MAKES NO WARRANTIES EXPRESS, IMPLIED, OR STATUTORY REGARDING THEI NFORMATION IN THIS PRESENTATION.
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