From Searches to SearchersDecember 11th 2015Steve Sirich, General Manager

Microsoft Confidential

Page 1Bing SMB Advertisers Search Ads12/11/2015 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.

In the past, Bing was a traditional search engine. It found you search results: links on a pageType here...ALL RESULTS

110 of 600,000,000 results

Key Message: Search 101 involved returning results and a list of links, leaving it up to searchers to find where to go next and what to click on

Originally, search was about links. Links to website. Links in search results. Just plain old links. Search was about surfacing, not filtering. Bringing back millions of results was a big accomplishment. Search in its infancy was about popularity, not relevancy. It was about quantity, not quality. It was about displaying a bunch of results and letting the searcher decide what to do. Leaving them to sort through the mass of information for themselves. Web results, videos and images were largely all treated in the same manner. As the Internet has evolved from websites and pages as a connected web of information, todays new layers of information add a richness to experiences only dreamt of a decade ago.Team: Microsoft SearchTemplate: Search Product Marketing 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/2015 4:39 PM2

Then search evolved to encompass social & entitiesBing has 6 billion facts, 28 billion entitiesPeople: 1.2 billion profiles, connections, interests

Places: 1.1 million U.S. restaurants alone8.5 million km2 of overhead imagery at 8 cm resolution (~3 inches)

Key Message: Web 2.0 ushered in more entities and info for search to crawl, becoming the information fabric about everything to everyone's lives.

Search engines, like Bing, are stitching together the pieces of the digital web to reassemble them into coherent objects.Bing has 6 Billion facts, 28 Billion entities, and growing very rapidlyWe have 1.2 Billion profiles, connections, interests.For places such as US restaurant alone, we already have 1.1mm entitiesFor things like Movies, we have over 800K entities with very rich information.This information fabric is the connective tissues for our devices to seamlessly connect to the people, places, and things that our users care about.But it isnt enough. Each day our world creates new technology, new devices, new apps, new services. Which means new ways to do things, new ways to connect, new things to learn. And while each holds the promise of helping us get more done, with less effort, too often they simply become one more thing competing for our finite time and attention. Too often, these solutions become part of the problem.Team: Microsoft SearchTemplate: Search Product Marketing 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/2015 4:39 PM3

Today search is advancingTo integrate more data sources and the ability to deliver actionable resultsTo allow users to express themselves in natural, intuitive waysnot just punch keywordsTo become an ecosystem of connected devices that serve relevant information

To be the bridge between a users intent and the experiences the world has to offer

Key Message: Today search is taking that information fabric and connecting users to an action in more natural ways across devices.

Today search is advancing to help users sift through the infinite amount content and data thats available to them. Search is the bridge between a users intent and the information and experiences the world has to offer. Today search blends personal, real world and real time information in a seamless manner to help users accomplish their tasks.It relies on allowing users to express themselves, not by guessing keywords, but by interacting in ways that are more natural and intuitive, combined with an understanding of their preferences, interests and context, sometimes using text, sometimes gesture, speech, conversation or images to interact with their PCs and devices.Bings approach to search involves helping people take action based on understanding their intent. At Bing weve integrated more data sources and the ability to deliver actionable results with entities, such as booking a restaurant or app linking into a service with a single click or comment.A new search paradigm means revolutionizing search to become an ecosystem of connected devices that serves relevant information and action to us in a way that is natural to how we learn and interact. Understanding whats on the web, how people use information to make decisions, and knowing when to filter the important from the trivial are todays baselines. People expect tech to make their lives better.Team: Microsoft SearchTemplate: Search Product Marketing 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/2015 4:39 PM4

Industry leading destination search, that is more immersive and rewarding for your passions.Change the game with a rich, open, intelligent platform that natively integrates new search experiences into your devices, apps, and services.

Key Message: Future of search will still be about connecting intent to an action but how it will be accomplished will change more personal, faster while doing less searching

Thats why at Bing are mission is to create an industry leading destination search, that is more immersive and rewarding for your passions.

While changing the game with a rich, open, intelligent platform that natively integrates new search experiences into your devices, apps, and services.

We live in a time of limitless expectations and technology. Technology promised to make work and life easier, instead it created a pace and expectation of efficiency that people cant keep up with. With search, we want to enable people to achieve more while doing less searching rather than simply finding more. Page 5Bing SMB Advertisers Search Ads12/11/2015 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.

Innovating with BingBing Predicts and Moments in TimeEngaging current users with immersive experiences and intelligent predictions about upcoming events

Knowledge and Action Graph APIBringing Bings rich data and actions directly into applications or services.

CortanaYour personal assistant on any device, helping you keep up to date on the things that matter to you.

Key Message: Innovations like Bing Predicts and MIT are engaging our users and our Knowledge/Action Graph API and Cortana are new ways of search, at times without keywords, which requires a deeper understanding of the user, content and context.

And its why youve seen us build things for this future.For example, we are creating immersive experiences centered around key moments in time like elections, sports, etc that engage users around passionate topics.

In addition, we recently launched Knowledge and Action Graph API, bringing Bings rich data and actions directly into applications or services. An example of how were using the Knowledge and Action Graph API within apps is with our very own Bing App on Android. On the Bing App on Android, we have a feature called Bing Snapshots. With Bing Snapshots, Bing will surface relevant information you may need, right in whatever app you may be using. Theres an understanding of what answer you want, simply based on the context of what you're doing in your other apps. Google has also launched something similar, called Now on Tap.And its why youve see us investing in intelligent agents like Cortana, powered by Bing. Cortana is your personal assistant across platforms, helping you keep you up to date on the things that matter to you. Weve build Cortana into Windows 10 right on the taskbar. Were introducing Bing and Cortana to millions of users +110M devices are running Windows 10.These new ways to search dont require keyword inputs and thus require a deeper understanding of the user, their intent and their context.Team: Microsoft SearchTemplate: Search Product Marketing 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/2015 4:39 PM6

WITH THE INDUSTRY

ACROSS MICROSOFT

Hi, Im Cortana.

ACROSS DEVICES

is the industrys intelligence platform

Key Message: To better understand users and their intent, Bing has become a platform and not just a search engine partnering across the industry.

For us to better understand the user, their intent and their context, weve built Bing not just as a search engine but rather the industrys intelligent platform.Bings intelligence is designed to empower people to achieve more.You can see Bings intelligence powering some of Microsofts most exciting innovations, from Cortana to voice search in Xbox One, from the search experience in Windows to search directly in Office so you stay focused on doing, not finding. Many of the industrys leaders trust their most valuable assets their users to Bing, whether its search inside Amazons devices. Bing powering web results on Siri and Spotlight Search on Apple Devices. Twitters translation, maps on thousands of leading websites. Bings technology is increasingly being adopted across the industry.We also partner with the industrys leaders to make Bing better, to make the experiences we provide richer, more engaging and more authoritative. Yelp. Twitter and Foursquare. TripAdvisor and now Uber to name a few. At Bing we are committed to an open approach of partnering across the web to bring value to our users.We believe an ecosystem of shared technology and strong, open partnerships is in the best interests of users its part of the reason why weve seen consecutive growth in our market share according to comScore our share is now 20.7% in the US.Team: Microsoft SearchTemplate: Search Product Marketing 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/2015 4:39 PM7

Paid search evolution

Showing an ad based solely on a queryKeywordsText ads MatchingTarget profile and circumstanceDay partingLanguageDemographicsHyper relevancyLocationDevice BiddingTarget peopleAudience-based targeting1st party and 3rd party dataCustom listsPersonalised experiencesHighly curated contentNUIIntegrated search experiences

We are here

Microsoft ConfidentialKey Message: More personal search experiences, more data collection and better user understanding in search has ushered new audience targeting capabilities and needs

Search has evolved to become a lot more personal and paid search has gone through this evolution as well.It began with the keyword to target customers and then we marched towards using profile data like demographic, started using day parting, language. Moved on to geo targeting and device bidding with the explosion of mobile and today were inching closer to targeting people. As search marketers who are data obsessed, we often forget that theres a person behind the keyword.The keyword is not dead, it just has more friends. Today search is not only about understanding query entries but more and more about understanding the behavior of the people using the network. Its about understanding the person conducting the search. As search marketers who are data obsessed, we often forget that theres a person behind the keyword.Were at the beginning stages of audience based targeting. For example, We launched Remarketing this past October, where marketers can retarget customers on Bing based on their user behavior on their website.Agencies and marketers are leveraging Data Management Platforms to build out audiences based on their 1st party data (e.g. emails, CRM data). But also leveraging 3rd party data to build out audiences.Google launched Customer Match, where marketers can use email addresses to build audiences.The use of IDs instead of cookies is increasingly being used to identify users in a multi-device world.The audience targeting space is quickly evolving and were very much in the early phases. Page 8Bing SMB Advertisers Search Ads12/11/2015 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.

Improved demographic coverage across age and gender.

Cake, muffins

Demographic

Extend search signals and the Bing Ads platform across our MSN properties.Native Ads (Beta)Re-engage with customers on Bing who have expressed interest by visiting your site.Remarketing

Your Ad

Audience Solutions from Bing

Microsoft ConfidentialKey Message: Bing Ads has launched audience solutions to take advantage of this trend like Remarketing and Native.

Here at Bingwe are building solutions to harness this transition from searches to searchers.As mentioned, we launched our Remarketing product in October, where we enabled advertisers to reach people who have engaged with their site.This step to audience based buying introduces new campaign strategies and tactics that advertiser can take advantage of. By targeting based on behavior and understanding previous actions or preferences a user has, opens up a realm of possibilities with paid search.New bidding strategies, new creative and new keywords all tailored to specific audiences allow marketers to deliver the right ad to the right user.Results from our pilot and launch have been promising and our customers are really excited about what this enables for them:Some advertisers have seen upwards of 5x higher CTR~10% lower CPCs

Recently, we began testing Bing Native ads in an open beta. Its been discussed the past day here at SIS, about how search is expanding outside the search box and were certainly doing this from an search advertising standpoint. With Bing Native Ads were extending the reach of the Bing Ads platform to target user intent even outside search and within our MSN properties.

We are taking advantage of the Bing Ads platform and utilizing targeting signals such as:User interests expressed by their prior search queriesUser actions and preferences based on the activity they have taken on an advertisers site - through our UET tags

And finally, weve done quite a bit improving our demographic coverage across our network. This summer we leveraged more demographic data from users search and display behavior to increase the age and gender coverage for Bing Ads on a global level. Moreover, with Windows 10 weve improved demographic coverage further. In fact, demographic coverage is 2x higher with Windows 10 users vs. other OS. Windows 10 is critical to Bings success with the Cortana integration on the taskbar but also deep Bing integration to the default browser, Microsoft Edge, that ships with Windows 10.

This improvement in demographic targeting can lead to an increase in click-through rate and conversion rate for targetable users, thus potentially increasing the overall return on investment for all your campaigns.

Search and search advertising tools are evolving to become more personal.

Microsoft Advertising 2012 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.12/11/20159

AudiencesKeywordsMobileNativeYOUR AD

PersonalConnecting to moments that matter

Microsoft ConfidentialKey Message: Were moving from a world focused on searches to one that focuses on searchers that enable marketers to better connect with their customers

Search has evolved quite a bit since the days of just providing a list of links. Its an exciting time to be in the search industry. New inputs, new data sets will give everyone here the potential to connect with their customers in a way that matters. Every year we get more and more signals that allows us to better understand a user and their intent. Its no longer about a search box but search as a platform. Its no longer just about keywords but keywords and audiences.Its delivering more personalized, relevant and more natural experiences (e.g. Cortana)The key to success in the future will be leveraging signals through targeting dimensions such as geography, device, time and correctly interpreting intent to drive efficient engagement through audience profiles. Were moving from a world focused on searches to one that focuses on searchers.

Question and Prizes: BE SURE TO CAVEAT THAT ONLY BRANDS CAN PARTICPATE, NO SPONSORS.Kindle Fire: What API have we made available to developers brings Bings rich data and actions directly into applications or services. (Bing Knowledge and Action Graph API)Xbox: According to comScore, what is Bings US Market share? (20.7%)Surface Pro: What is the name of the new browser shipped with Windows 10 that has Bing heavily integrated? (Microsoft Edge)Microsoft Band: Approximately, how many devices are running Windows 10? (+110M Devices)iPhone: What two features in Apple devices does Bing power web results for (Siri and Spotlight Search)

10

Microsoft Confidential

Microsoft Confidential 2014 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Confidential

Microsoft Confidential

12/11/201512 2014 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 to be 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, AS TO THE INFORMATION IN THIS PRESENTATION.