Bing Ads Spain: Retail eCommerce Insights

Retail eCommerce Insights

Bing Network Spain

November 2017

eCOMin EU

BING NETWORK

X-BORDEReCOM

BING AUDIENCE

CONTENT

Retail eCommerce in Europe

UK

€110BDE

€65BES

€18BFR

€42BIT

€14BNL

€10BSCAND

€33B

Retail eCommerce(2017 Estimates – Billions of €)

Source: eMarketer 2017

38%

32%

38%

29%

41%

37%

29%

UK DE ES FR IT NL SCAND


UK

43MDE

49MES

21MFR

33MIT

19MNL

10MSCAND

16M

DIGITAL BUYERS

in 2017


89% 81% 64% 72% 53% 80% 81%

Digital Buyers Penetration 2017

(% of total Internet Population)

5,1%

3,2%

15,2%

6,4%

13,7%

3,8%

6,3%

UK DE ES FR IT NL SCAND


€ 21,4

€ 14,0

€ 9,7

€ 2,8 € 2,6€ 1,5

€ 24,2

€ 15,9

€ 10,9

€ 3,6 € 3,5€ 1,7

UK Germany France Italy Spain Netherlands

Chistmas eCommerce Sales 2016 Chirstmas eCommerce Sales 2017

Source: RetailMeNot, Centre for Retail Research; eMarketer calculations, Nov 23, 2016

Retail eCommerce – Christmas Season(Billions of €)

Cross-Border Digital Buyers

Elias Ghanem

Managing Director, PayPal MEA

UK

€9,7BDE

€10,1BES

€2,2BFR

€8,7BIT

€1,5BNL

€2,6B

CROSS-BORDER

Retail eCommerce(2017 Estimates – Billion of €)


8,9%

19,5%

14,7%15,7%

19,4%

21,8%

UK DE ES FR IT NL


UK

32MDE

38MES

21MFR

26MIT

22MNL

6MSCAN

15M

CROSS-BORDER

DIGITAL BUYERS

Source: Eurostat, Dec 2016

40%

26%

41%

47%

58%

42%

26%

17%

32%

37%

40%

25%

UK

DE

FR

IT

ES

NL

2011 2016

Source: Eurostat, Dec 2016Source: eMarketer 2016

67%

80%

86%

78% 77%79%

81%15%

11%8%

12% 12% 10% 9%15%

7%5%

8% 8% 9% 8%

3%3% 2% 2% 3% 2% 2%

UK DE FR IT ES SE NL

PC/Desktop Mobile Tablet Other

Source: Ipsos/Paypal 2016

CLOTHING

46%ELECTRONICS

29%TRAVEL

25%ENTERTAINMENT

24%HOBBY

23%COSMETICS

20%

CROSS-BORDER

PRODUCT CATEGORIES(Western Europe – 2015)


CROSS-BORDER, WHY?


Research Drivers


CROSS-BORDER, WHEN?Purchase Drivers

WHY NO CROSS-BORDER?


Purchase Blockers

Retail on the Bing Network

MethodologyMethodology

• Market: Spain

• Top 50.000 Retail search queries based on

volume

• Analysis period: Oct 2016 – Jan 2017 (and YoY)

Objectives

• Identify Retail related Christmas shopping trends

• What does the Bing searcher look like?

• What are their behaviours?

• Advertiser opportunities

70%

80%

90%

100%

110%

120%

130%

Generic Searches Brand Searches

* ES Bing and Yahoo sites, all devices, 01 Sep 2015 – 30 Sep 2017

Generic searches peaked on Black Friday significantly more than branded queries, indicating a general propension to

last minute purchases most probably driven by sales, offers and occasions.

Brand Retail Christmas searches peak during Black Friday

Retail search queries indexed to the average daily volume*

Black Friday 2015

Black Friday 2016

23%

4%

77%

40%

49%

41%

67%

21%

39%

34%

9%

31%

77%

96%

23%

60%

51%

59%

33%

79%

61%

66%

91%

69%

Sports & Fitness

Retailers & General Merchandise

Occasions & Gifts

News, Media & Publications

Home & Garden

Hobbies & Leisure

Health

Food & Groceries

Computers & Consumer Electronics

Beauty & Personal Care

Apparel

Retail Total

Generic Searches Brand Searches

The impact of Brand and the opportunity with Generic

• Brand queries are more prominent in the Retailers & General Merchandise (96%) and Apparel (91%) categories

• Occasions & Gifts and Health are the two categories with the largest share of Generic searches

* ES Bing and Yahoo sites, all devices, Oct 2016 – Jan 2017

Retail search queries share by Generic and Brand

79% 75%

91%80% 77%

90%80% 82%

74%83%

77%

17% 22%

8%17% 20%

8%16% 14%

22%14%

20%

Apparel Beauty &

Personal Care

Computers &

Consumer

Electronics

Food &

Groceries

Health Hobbies &

Leisure

Home &

Garden

News, Media

& Publications

Occasions &

Gifts

Retailers &

General

Merchandise

Sports &

Fitness

PC Mobile Tablet

Which Retail categories have the highest Mobile device share?

• PC is still the #1 device of choice on Bing with 83% of search volume, whilst Mobile devices account for 14%

• Occasions & Gifts is the category that sees the largest Mobile share, followed by Beauty & Personal Care


Retail Categories query volume by Device type


What is the age & demographic mix across the various retail sub-categories?More than 67% of all up Retail search queries made on the Spanish Bing Network are coming from 35-64 year

olds, with females making 47% of those searches

10%

10%

15%

8%

7%

12%

12%

9%

17%

15%

18%

11%

15%

17%

21%

11%

17%

15%

16%

16%

19%

19%

20%

15%

38%

44%

40%

33%

42%

40%

36%

42%

38%

37%

42%

38%

29%

24%

19%

37%

28%

25%

29%

27%

21%

23%

18%

29%

7%

5%

5%

11%

6%

7%

7%

6%

5%

5%

3%

8%

Sports & Fitness


Occasions & Gifts


Home & Garden

Hobbies & Leisure

Health

Food & Groceries



Apparel

Retail Total

18-24 25-34 35-49 50-64 65+

30%

48%

64%

46%

55%

47%

58%

56%

40%

67%

69%

47%

70%

52%

36%

54%

45%

53%

42%

44%

60%

33%

31%

53%

* ES Bing and Yahoo sites, all devices, Oct 2016 – Jan 2017 YoY

Top 5 Retail sub-categories on Bing IT

Food & Groceries was the fastest growing category by clicks YoY (+72%). Retail clicks overall grew by +15% YOY.

ClicksSearches

17% 72%

8% 45%

Food &

Groceries

1% 39%

38%

Health

21%

30%Retailers &

General Merchandise 10%

Beauty &

Personal Care

Occasions &

Gifts


Avg CPC (top page position) Avg CTR (top page position)

€ 0,08

€ 0,07

€ 0,06

€ 0,11

€ 0,14

€ 0,13

Generic KWs Brand KWs

8,9%

12,7%

16,3%

4,3%

7,9%

9,2%

Retail Ads performance by DeviceTop page Position, Oct 2016 - Jan 2017

Black Friday and beyond

0%

50%

100%

150%

200%

250%

300%

350%

0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022 0 2 4 6 8 10121416182022

22/11/2016 23/11/2016 24/11/2016 25/11/2016 26/11/2016 27/11/2016 28/11/2016

Mobile Indexed Volume PC Indexed Volume Tablet Indexed Volume

▪ Black Friday remains the biggest shopping day in the Spanish e-commerce calendar

▪ We saw a significant increase in PC traffic during the daily hours of Black Friday, indicating a general propension from the audience to buy (conversions do mainly happen on desktop devices) profiting from discounts and offers.

Hourly traffic to the Bing Network by Device during 2016 Black Friday week

Source: Retail Search queries indexed to average hourly volume. ES Bing and Yahoo sites Black Friday week (22 – 28 Nov 2016)

Which Retail categories are the most Mobile on Black Friday Week?During Black Friday & Cyber Monday Week in 2016 (22 – 28 Nov), Occasions & Gifts and Beauty & Personal Care categories had the largest Mobile share with 20% and 19% of search queries coming from a Smartphone respectively.

13%

8%

8%

13%

13%

15%

16%

16%

18%

19%

19%

20%

84%

92%

91%

83%

84%

81%

81%

80%

79%

78%

77%

77%

Retail Total


Hobbies & Leisure



Apparel

Food & Groceries

Home & Garden

Health

Sports & Fitness


Occasions & Gifts

Mobile PC Tablet

Device share of retail queries on Black Friday Week, The Bing Network includes Microsoft and Yahoo sites in Spain, 22 to 28 Nov, 2016

Which Retail categories do peak on Black Friday and Cyber Monday?

Retailers

(Dept. stores)

Apparel

Home &

Garden

Top 3 categories on Black Friday & Cyber Monday

vs Monthly average searches in Nov 2016

4%

Top three retail categories on Black Friday and Cyber Monday by growth vs average searches in the month of Nov 2016h, Bing and Yahoo sites in Spain

▪ The Retail categories with the highest search volume on Black Friday saw a drop on Cyber Monday, however still

performing above monthly average.

▪ Apparel was the top performing category on Black Friday on both Generic and Branded searches.

148%

115%

112%

277%

194%

190%

Beauty &

Personal Care

Apparel 120%

126%

137%

118%

110%

114%

Black Friday Black Friday Cyber MondayCyber Monday

Retailers

(Dept. Stores)

0%

50%

100%

150%

200%

250%

300%

350%

400%

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Daily Trend of Sales Retail Queries vs Generic Queries (index)

Generic Searches Discount Searches

2017 Sales Season

Black Friday 2016

Sales Retail Queries (searches including terms such as sales, discount, offer etc.) peaked during the Sales Season in January 2017 (up to +350%), indicating a general user attitude and interest towards occasions and discounted purchases available in those days

Generic Discount Retail searches peak during Black Friday and Sales Season

* ES Bing and Yahoo sites, all devices, Nov 2016 – Jan 2017

About the Bing audience

15%

20%

24%25%

17%

20%

23%

21% 21%

15%

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64

Bing Audience OVER-INDEXES ACROSS

OLDER AGE GROUPS (35+)

Source: GWI Q2 2017

Western Europe includes: UK, DE, FR, IT, ES, SE, NL

10%

25%

46%

18%

10%7%

20%

46%

21%

13%

Top 10% Top 25% Mid 50% Bottom 25% Prefer not to

say

Bing Audience OVER-INDEXES ACROSS

HIGHER INCOME GROUPS

Source: GWI Q2 2017

Western Europe includes: UK, DE, FR, IT, ES, SE, NL

Source: GWI Q2 2017

41%

34%

40%

22%

45%

34%

45%

39%

28%

35%

19%

41%

31%33%


84%85%

76%

74% 74%

69%

75%

84% 84%

72%73%

70%

72%71%


Source: GWI Q2 2017

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Bing Ads Spain: Retail eCommerce Insights