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The value of search: Powered by Bing Ads InsightsPurna Virji
Sr. Training Manager
Bing Ads
Initiation
Comparison
Trial
Transact
Recommendation
Research
Experience
Purchase
Intent
What is the value of search?
The Amazon
channel
strategy
Click-to-
brick sales
The path to
purchase
Where do retail consumers shop online?How do retail shoppers use search?
How do searchers behave differently on Bing vs. Amazon?
RESEARCH METHODOLODY
November 1-7, 2016
Microsoft internal study.
What is the value of search?
• Tracked user activity on web browsers.
• Compared user activity on Bing and Amazon and categorized users on different
categories based on retail categories from queries searched on Bing.
• Observed user journeys that either started on Bing or Amazon to understand
patterns of different user groups.
55%
Source: State of Amazon 2016, Bloomreach, September 2016
Most retail searches don’t happen on Amazon
Where do retail consumers shop online?
Share of retail searches
Microsoft internal data, web browser logs, November 2016
AmazonTop search
engines
Based on user behavior:
Do not even visit Amazon. 27%
This makes Bing a crucial channel to reach your retail customers.
Where do retail consumers shop online?
Use both Bing and Amazon.73%
80%Microsoft internal data, web browser logs, November 2016
Over a quarter of Bing users perform retail searches exclusively on Bing.
Bing user overlap with Amazon
Of the 73% who use both Bing and Amazon:
Do not even visit Amazon. 27%
This makes Bing a crucial channel to reach your retail customers.
Where do retail consumers shop online?
Use both Bing and Amazon.73%
20%Do use the same way.
Do not perform the same retail category searches on both Bing and Amazon.80%
Over a quarter of Bing users perform retail searches exclusively on Bing.
Bing user overlap with Amazon
Microsoft internal data, web browser logs, November 2016
Of the 73% who use both Bing and Amazon:
82% 18%
Do not even visit Amazon. 27%
This makes Bing a crucial channel to reach your retail customers.
Use both Bing and Amazon.73%
Beauty & Fragrance
Microsoft internal data, web browser logs,
November 2016
78% 22%Kitchen & Housewares
77% 23%Toys
84% 18%Home Improvement
86% 18%Lawn & Garden
Where do retail consumers shop online?
Over a quarter of Bing users perform retail searches exclusively on Bing.
Bing user overlap with Amazon
How do users behave differently on Bing vs. Amazon?
Microsoft internal data, web browser logs, November 2016
Search is the most relevant channel for the
research phase of most consumer journeys
because this is the stage at which users are
seeking the background information they
need to become more informed on what
they are seeking to buy.
As a result, advertisers lacking a presence
on Bing lose out on critical stages of the
consumer decision journey.
Shoppers use search for top- through bottom-of-funnel activities.
For the 80% of shoppers who search Amazon & Bing differently,
how to get rid of a cold
decongestant
cold medicine
cough remedies
home remedies for cough
expectorant
cough medicine
cold symptoms
mucus
cough
common cold
phlegm
sore throat remedies
cold
sore throat
dextromethorphan
flu symptoms
Top cold-flu related searches on search engines vs. Amazon
Amazon
Top Search Engines
How does Bing complement your Amazon strategy?
Microsoft internal data, web browser logs, November 2016
Search creates brand awareness and increases conversion on multiple channels.
For the 20% of shoppers who search Amazon & Bing similarly,
vs.
New policy update
Use Sitelink Extensions to complement your current retail strategy.
How does Bing complement your Amazon strategy?
Drive searchers to your
Amazon storefront with
Sitelink Extensions.
Leverage Bing Ads to promote your Amazon store.
New Pilot
Use Price Extensions to complement your current retail strategy.
How does Bing complement your Amazon strategy?
Drive searchers to your
Amazon storefront with
Price Extensions.
Leverage Bing Ads to promote your Amazon store.
How does Bing complement your Amazon strategy?
Your ecommerce
websiteYour physical
store
Your online
retail channels
Bing helps drive your customers to all of your retail channels.
Amazon is one channel in your retail strategy
How does paid search impact offline sales?
RESEARCH METHODOLODY
October 17-23, 2016 (Pre-Holidays)
November 1 – December 31, 2016 (Holidays)
Microsoft worked with LiveRamp to attribute a large
retailer ’s in-store purchases to their Bing Ads campaigns.
What is the value of search?
Anonymously mapping:
Retailer ’s offline transactions
LiveRamp cookie
Bing cookie
Bing Ads campaign attribution
e-Commerce is growing fast, but offline sales are still big
12.5%
2.2%
eCommerce Offline Retail
U.S. Department of Commerce – Q1 2017 (Total retail sales, excluding auto dealers & food/drinking places)
Online sales growth was 5.7x that of offline sales.
86.5%
Q1-2017
Offline % e-Commerce %
87% of sales from physical stores.
How does paid search impact offline sales?
Prior to the Holidays, of the total revenue generated by Bing Ads campaigns, 39% of it was offline sales.
During Holidays, this revenue share contribution rose to 52% of it was offline sales.
39%
52%
PRE-HOLIDAYS HOLIDAYS
OFFLINE ONLINE
Microsoft internal data, October - December 2016
Bing Ads drove higher ratio of offline revenue than online during Holidays.
How does paid search impact offline sales?
30% during Pre-Holidays
46% during Holidays
Microsoft internal data, October - December 2016
Non-brand and Bing Shopping Campaigns drive offline sales during Holidays.
BRAND
SHOPPING
CATEGORY
PRE-HOLIDAY CONTRIBUTION
70%
17%
14%
BRAND
SHOPPING
CATEGORY
HOLIDAY CONTRIBUTION
54%
20%
26%
Offline ROAS improved during the
Holidays for all three ad types, but
especially for category (non-branded)
and Shopping campaigns.
How does paid search impact offline sales?
From pre-holiday to the holiday period:
2%
38%
34%
Offline ROAS
Brand account Category account Shopping campaigns
Microsoft internal data, October - December 2016
Offline ROAS increases for all ad types during Holidays.
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Dec
Nov Dec
Spend
Online
Transactions
Store Transactions
How does paid search impact offline sales?
Consumers purchase patterns differ between online and physical store sales.
Microsoft internal data,
October - December 2016
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31-
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Nov Dec
Spend
Store Transactions
How does paid search impact offline sales?
Consumers search early, and spend offline later during the holidays.
Microsoft internal data,
October - December 2016
Be patient. We found a delayed
effect on in-store revenue from
paid search spending across
branded, category and
shopping campaigns during the
holiday season. Sum of Offline Ts
(Click Date)
How does search impact the path to purchase?
What is the value of search?
Teamed up with:
pepperjamA leader in online performance marketing to analyze their deep set of their clients’ cross channel marketing data
An attribution study to examine the customer journeys across digital channels and understand the role paid search and Bing Ads plays in capturing online conversion.
2.6Morders
1.4 yearsstudy period
17.7Mpath events
The study looked at:
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
How does paid search impact the path to purchase?
1. Organic and paid search play a prominent role in purchase paths, as an introduce, influencer, and closer.
2. Compared to Google Ads, Bing Ads was attributed to:
• Fewer steps in the purchase path
• A higher average order value (AOV)
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Defining the purchase path
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Search’s role in the purchase path
Paid Search acts as an Introducer, Influencer, and a Closer.
(Sometimes simultaneously as a one-step closer!) 36%
22%
One-Step Purchase Paths Multi-Step Purchase Paths
Paid Search’s Path Positions
Introducer Influencer Closer
22%
19%
Bing Ads closes faster than Google Ads
22%
19%
Closer, 23%
One-Step Closer,
35%
Influencer,
20%
Introducer,
22%
Other Paid SearchBing Ads were 20% more likely than Google to close a purchase path in one-step.
Bing Ads closes more often than Google overall.
Closer, 20%
One-Step Closer,
42%
Influencer, 16%
Introducer,
22%
Bing Ads
62% Overall Close Rate 58% Overall Close Rate
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Shorter purchase paths with Bing Ads
22%
19%
When a Bing Search ad click was in a purchase path with social or email channels, conversions occurred in 12% and 20% fewer steps, respectively.
Google involvement did not drive as much improvement (drove 13% and 15% less of an improvement than Bing)
-19.99%
-11.60%
-17.39%
-9.90%
Average steps in purchase path
Other Paid Search Bing Ads
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Higher average order values with Bing Ads
22%
19%
In one-step purchase paths, Bing Ads has an 8% higher average order value than Google and a 29% higher AOV than “all other channels.”
+8%
+29%
Bing Ads vs. Other Paid Search Bing Ads vs. All Other Channels
AOV in One-Step Purchase Paths
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Higher average order values with Bing Ads
22%
19%
In multi-step purchase paths, when Bing Ads is an Introducer, has an 18% higher AOV than one starting with all other channels.
+1%
+18%
Bing Ads vs. Other Paid Search
(Introducer)
Bing Ads vs. All Other Channels
(Introducer)
AOV in Multi-Step Purchase Paths
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
Higher average order values with Bing Ads
22%
19%
On average, multi-step purchase paths with a Bing Ads click have a higher average order value than multi-step purchase paths without.
$-
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$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00
AOV by Channel
Multi-Step AOV Multi-Step with Bing Ads AOV
Source: Microsoft, Paid Search and Marketing Mix Study, 2016. Study of the customer journey across digital channels in the U.S., PepperJam, commissioned by Microsoft, 2.6MM orders and
17.7MM path events from ten (10) attribution clients (including a majority of brands in the fashion & apparel industry), January 2015 to May 2016.
What is the value of search?
Complements
your Amazon
strategy
Drives
offline sales
and ROAS
Accelerates
the path to
purchase
© 2017 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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