The Value of Search: Powered by Bing Ads Insights By Purna Virji

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.


• 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.


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:





20%Do use the same way.

Do not perform the same retail category searches on both Bing and Amazon.80%




Of the 73% who use both Bing and Amazon:

82% 18%




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




How do users behave differently on Bing vs. Amazon?


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?


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.


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.


Drive searchers to your

Amazon storefront with

Price Extensions.

Leverage Bing Ads to promote your Amazon store.


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.


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.


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.


30% during Pre-Holidays

46% during Holidays


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.


From pre-holiday to the holiday period:

2%

38%

34%

Offline ROAS

Brand account Category account Shopping campaigns


Offline ROAS increases for all ad types during Holidays.

1-N

ov

3-N

ov

5-N

ov

7-N

ov

9-N

ov

11-N

ov

13-N

ov

15-N

ov

17-N

ov

19-N

ov

21-

No

v

23-N

ov

25-N

ov

27-N

ov

29-N

ov

1-D

ec

3-D

ec

5-D

ec

7-D

ec

9-D

ec

11-D

ec

13-D

ec

15-D

ec

17-D

ec

19-D

ec

21-

Dec

23-D

ec

25-D

ec

27-D

ec

29-D

ec

31-

Dec

Nov Dec

Spend

Online

Transactions

Store Transactions


Consumers purchase patterns differ between online and physical store sales.

Microsoft internal data,

October - December 2016

1-N

ov

3-N

ov

5-N

ov

7-N

ov

9-N

ov

11-N

ov

13-N

ov

15-N

ov

17-N

ov

19-N

ov

21-

No

v

23-N

ov

25-N

ov

27-N

ov

29-N

ov

1-D

ec

3-D

ec

5-D

ec

7-D

ec

9-D

ec

11-D

ec

13-D

ec

15-D

ec

17-D

ec

19-D

ec

21-

Dec

23-D

ec

25-D

ec

27-D

ec

29-D

ec

31-

Dec

Nov Dec

Spend

Store Transactions


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?


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)



Defining the purchase path



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



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



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




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




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.

$-

$20.00

$40.00

$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




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.