the future of automotive: bing ads italy insights

The Future of AutomotiveBing Ads Insights Italy - December 2017

Discover the latest transformations in the

Automotive industry and the main trends on

the Bing network. Find valuable insights on

how Automotive Advertising is growing and

understand how to reach and connect with

your potential customers in Italy and advertise

your products across markets. Get to know

your target audience on Bing, get access to

important tips that can help you plan your

SEM campaigns with us.

There is a huge opportunity for you out

there, Bing Ads can be your ideal strategic

partner to unlock it!

SOURCE: Nielsen/AIB Italia, “Automotive Digital Advertising: Dimensione economica e struttura del mercato”, Oct 2017

48.7%

9.1%

3.7%

37.1%

1.4%

2016 Ad Spend Share by Media

(Automotive)

TV Radio Press Digital Other

€341M

Digital Ad Spend Growth

(Automotive)

2017 vs 2016

2018 vs 2017

+1,9%

+9,4%

SOURCE: Nielsen/AIB Italia, “Automotive Digital Advertising: Dimensione economica e struttura del mercato”, Oct 2017

2016 Automotive Digital Ad Spend by Channel

(% of respondents)

6.8%

91.9%

96.9%

98.8%

100.0%

Classified/Directories

Video

Social Media

Display

Search

SOURCE: Nielsen/AIB Italia, “Automotive Digital Advertising: Dimensione economica e struttura del mercato”, Oct 2017

2016 Automotive Digital Usage by Channel

(% of Ad Spend)

34.2%

51.4%

28.5%

33.3%

17.6%

7.9%

13.1%

6.6%

6.6%Total Digital

Automotive

Search Display Video Social Classified/Directories

■ Connected Cars: Vehicles equipped with any variety of sensors

that enable communication with the driver, other vehicles,

roadside infrastructure and the cloud in order to improve vehicle

safety, efficiency and rider experience.

■ Autonomous Vehicles: Fully automated or self-driving vehicles

that are capable of operating without direct driver action to

control steering, acceleration and braking. Currently, vehicles may

be computer-driven or computer-assisted driven, with various

levels of autonomy, as well as connected features that allow

exchanges of data.

■ Vehicle Cyber Security: Security protection of vehicles, drivers

and passengers against cyberattacks and intrusions which could

threaten the physical integrity of persons in and outside the

vehicle. Cyber security becomes an even bigger concern with

autonomous and driverless cars in which connectivity plays a

much bigger and more critical role for the safe driving of vehicles.

6% 4% 6% 7% 6% 6%

65% 67%73% 74% 76% 71%

30% 29%21% 19% 18% 23%

Italy US France UK Germany Total

Yes, and I understand what it means

Yes, but I don't understand what it means

No

SOURCE: INRIX/Cint, “Connected & Autonomous Vehicle (CAV) Consumer Survey, May 2017

SEARCH GROWTH ON BING

Search queries for Connected Cars on

Bing Italy are growing fast (index)

2016 H1 2016 H2 2017 H1

+117%+154%

SOURCE: INRIX/Cint, “Connected & Autonomous Vehicle (CAV) Consumer Survey, May 2017

“Connected car technologies are already

prevalent today with increasing ease of

access, convenience and affordability”

INRIX 2017 .

81%

81%

78%

80%

78%

79%

73%

0% 20% 40% 60% 80% 100%

Italy

Infotainment

Internet

Driver well-being

Vehicle management

Navigation/mobility

Driver assistance

Safety

SEARCH GROWTH ON BING

Search queries for Autonomous Driving

on Bing Italy are also growing (index)

+119%+131% 65%

35%

Very interested / Quite interested

Not interested

79%

21%

Absolutely Yes / Much

Not that much / absolutely not

2016 H1 2016 H2 2017 H1

SOURCE: CBIPE; TNS Sofres; Respondents: car owners with a car bought in the five years prior to survey

SOURCE: Capgemini, “Cars Online 2017: Beyond the Car”, Feb 2017

*1. Consumers actively considering a car purchase or a lease within the year

22% 22% 26%

39%

25%

78% 78% 74%

61%

75%

Italy US France UK Germany

No Yes

“Autonomous driving is the next big thing,

and consumers are willing to pay for it.

Already enthused about advanced driver

assistance systems, consumers are eagerly

waiting for the next breakthrough:

autonomous driving.”

Capgemini, 2017 .

“Cyber security adds value to the car and

can even affect the purchasing decision.

Very few consumers are not concerned

about cyber security; in fact, a significant

majority of the survey respondents say

that a vehicle’s cyber security would

influence their purchasing decision.”

Capgemini, 2017 .2% 6% 7% 9% 5% 4%4%

4% 5% 5%3% 4%

26%24%

27%33%

27% 24%

40% 33%

39% 28%

34% 38%

28% 33%22% 25%

31% 30%

Italy US France UK Germany Total

1 (Not at all) 2 3 4 5 (Key decision factor)

SOURCE: Capgemini, “Cars Online 2017: Beyond the Car”, Feb 2017

*1. Consumers actively considering a car purchase or a lease within the year

Methodology

• Market: Italy

• Top 50.000 Auto search queries based on volume

• Period: October 2015 to October 2017

Objectives

• Identify auto related search trends on the Bing Network

• Search categories and user behaviour

• Advertiser Opportunities

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

Trendline

50%

60%

70%

80%

90%

100%

110%

120%

130%

140%

Oct

2015

No

v 2015

Dec

2015

Jan 2

016

Feb

2016

Mar

2016

Ap

r 2016

May

2016

Jun 2

016

Jul 2016

Aug

2016

Sep

2016

Oct

2016

No

v 2016

Dec

2016

Jan 2

017

Feb

2017

Mar

2017

Ap

r 2017

May

2017

Jun 2

017

Jul 2017

Aug

2017

Sep

2017

Oct

2017

Mo

nth

ly s

earc

h v

olu

me (

ind

ex)

Motor

Vehicles Vehicle Dealers

86%

volume of generic searches

Motor Vehicles

64%

Vehicle Dealers

22%

Vehicle Parts &

Accessories

8%

Vehicle Specs,

Reviews &

Comparisons

3%

Other Categories

3%

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

Automotive searches

all up grew by +11%

YoY from 2016 to 2017.

Parts & Accessories was

the fastest growing top

category (+13% YoY).

Parts & Accessories, 13%

Motor Vehicles, 11%

Vehicle Dealers, 11%

Vehicle Specs, Reviews & Comparisons, 7%

Other Categories, 17%

0% 5% 10% 15% 20%

SOURCE: Microsoft internal data, Jan-Oct. 2016 vs Jan-Oct 2017, Italy.

48% of Total

Automotive searches

were generic queries.

Only 30% of top category

Motor Vehicles were

generic searches.

Vehicle Dealers, 85%

Specs, Reviews & Comparisons, 83%

Parts & Accessories, 62%

Repair & Maintenance, 58%

Other Categories, 94%

Motor Vehicles, 30%

Automotive All Up, 48%

15%

17%

38%

42%

6%

70%

52%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generic Searches Brand Searches

SOURCE: Microsoft internal data, Jan-Oct. 2016 vs Jan-Oct 2017, Italy.

Alfa Romeo

Maserati

Range Rover

Mercedes

Audi

FIAT

Toyota

SEAT

Ford

Renault

Luxury Car Brand Non-Luxury Car Brands

SOURCE: Microsoft internal data, Jan-Oct. 2017, Italy.

8%20% 21% 23% 26%

19%11%

14% 15%15% 12%

14%5%

4% 3%3% 4%

4%11%

11% 9%9% 13%

11%

28%

27%19%

18% 12%21%

37%

23%34% 31% 33% 32%

Italy US France UK Germany Total

Traditional Automakers Established tech giants (e.g. Apple, Google)

Newer automakers (e.g. Tesla) Ride-sharing companies (e.g. Uber, Lyft)

Trust them equally None of the above

SOURCE: INRIX/Cint, “Connected & Autonomous Vehicle (CAV) Consumer Survey, May 2017

35% 30% 29% 28% 27% 26% 24%36%

0%

25%

50%

75%

100%

% S

earc

h v

olu

me

Mobile Traffic PC + Tablet Traffic

Motor Vehicles

35% of

search volume coming

from mobile devices.

23% of clicks were

from mobile devices Automotive

Total

32%

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

26%6%14% 24% 13% 26%24% 8% 23

%

% C

liks

32%

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

97% 96% 96% 97% 97%

106%112%

Searc

h v

olu

me (

ind

ex)

Searches on Mobile Devices

32%

111% 110% 107% 107%103%

83% 80%

Searc

h v

olu

me (

ind

ex)

PC+Tablet Searches

4% 5%

11% 10%

1%

6%

9%

25% 25%

5%

0%

10%

20%

30%

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

Searc

h v

olu

me

Female Male

Male audience take the

lead for automotive-

related searches across

all age groups accounting

for 70% of total

volume.

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

40%

50%

60%

70%

80%

90%

100%

110%

120%

Oct

2015

No

v 2015

Dec

2015

Jan 2

016

Feb

2016

Mar

2016

Ap

r 2016

May

2016

Jun 2

016

Jul 2016

Aug

2016

Sep

2016

Oct

2016

No

v 2016

Dec

2016

Jan 2

017

Feb

2017

Mar

2017

Ap

r 2017

May

2017

Jun 2

017

Jul 2017

Aug

2017

Sep

2017

Oct

2017

Mo

nth

ly s

earc

h v

olu

me (

ind

ex)

+18% YoY

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

Trendline

Audi

BMW

Porsche

Mercedes

Range Rover

FIAT

Nissan

Ford

SEAT

Toyota

Luxury Used Cars Non-Luxury Used Cars

SOURCE: Microsoft internal data, Oct 2015 - Oct 2017, Italy

(+42%

YoY

SOURCE: Microsoft internal data, Oct. 2015 – Oct. 2017, Italy.

Trendline

40%

60%

80%

100%

120%

140%

160%

Oct

2015

No

v 2015

Dec

2015

Jan 2

016

Feb

2016

Mar

2016

Ap

r 2016

May

2016

Jun 2

016

Jul 2016

Aug

2016

Sep

2016

Oct

2016

No

v 2016

Dec

2016

Jan 2

017

Feb

2017

Mar

2017

Ap

r 2017

May

2017

Jun 2

017

Jul 2017

Aug

2017

Sep

2017

Oct

2017

Mo

nth

ly s

earc

h v

olu

me (

ind

ex)

43%

39%

38%

36%

32%

Italy

The cost of EVs is further subsidised to make them as cheap as conventional cars

SOURCE: Capgemini, “Cars Online 2017: Beyond the Car”, Feb 2017

*1. Consumers actively considering a car purchase or a lease within the year

“… as for electric vehicles (EVs), consumers

are interested, but not passionate. Many

things (some beyond the control of the

OEM) will need to happen before EVs

become commonplace in every market.”

Capgemini, 2017 .Charging the battery is as quick and easy as picking up gas/petrol/diesel

The driving range of EVs is significantly increased beyond current levels

The cost of gas/petrol/diesel increases significantly

The environmental impact of conventional engines is proven to be far worse than previously imagined

* CONVERSIONS: User booking a test Drive or reaching a Vehicle Configurator page, Max Conversion Window 1 Month

SOURCE: Microsoft internal data, Sep – Oct. 2017, Italy.

30,994User Paths

250,550User Queries

71,238User Clicks

5,213Conversions*

Oct 2017Sep 2017

Track of a large sample of conversions* that

happened on Motor Vehicles in October 2017

on the Bing Network in Italy

Map those conversions back to user search

histories from that month and the previous month

(September 2017)

SOURCE: Microsoft internal data, Sep – Oct. 2017, Italy.

12 days.8

searches

8,1AVG Searches Per Path

12AVG Path Duration in Days

52%

7%

7%

34%

More than 10 Days

6-10 Days

2-5 Days

Same Day

Path Duration (days)

16%

9%

18%

55%

3%

More than 10

Searches

8-10 Searches

5-7 Searches

2-4 Searches

1 Search

Path Lenght (searches)

SOURCE: Microsoft internal data, Sep – Oct. 2017, Italy.

majority of search paths were dominated by queries containing a Car Brand or Model mentions

consideration phase

decision phase

81%73%

93%

19%27%

7%

First Query Middle Queries Last Query

Query Type by Path Stages

(Brand/Model vs Generic Queries)

Brand and/or Car Model Generic

SOURCE: Microsoft internal data, Sep – Oct. 2017, Italy.

In 79% of the analyzed Paths, users ultimately converted on a different Brand than the first one they intially considered.

Source: GlobalWebIndiex, Q2 2017

Network: Bing and Yahoo Network

Market: Italy