Download - Mobile ad strategy for the retail customer
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RetailGet more out of your mobile campaigns
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It’s all about providing the convenience of being able to shop and pick up products when they want, where they want. Mobile is at the nucleus of this change. – Prat Vemana
VP of e-commerce, product management, and customer experience, Staples
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Table of contents
Mobile user behavior trends: Retail
The shift of retail advertising spend
Mobile influences the path-to-purchase journey
Yahoo Bing Network marketplace performance trends
Recommendations
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Mobile changes consumers’ shopping behavior
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Retail spend is increasing because of mobile
Sources: ¹The Digital Consumer, Nielsen Company, Feb 2014
²Shopper Sciences Study, 2012
of mobile users say they browse the internet more because of mobile devices.
50% of smartphone users
(plus 35% of tablet users) do more shopping because of mobile devices.²
26%
More than
4 in 5
smartphone and tablet owners are using a mobile device for shopping activities.¹
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3 in 4 mobile users use search in their shopping process to research or to purchase.1
60% of online retail users are coming from smartphones.2
70%of mobile conversions happen within 5 hours of mobile search.3
1 in 5retail e-commerce sales comes from mobile4 and is expected to grow as mobile payments mature.
1Ipsos MediaCT, Purchased, and Google, Understanding Consumer’s Local Search Behavior, 2014. ²xAd/telmetrics mobile path to purchase study, 2013. *Conversion include calls, store
visits, and purchases across screens. ³Microsoft Research, Telmetrics mobile path to purchase study, 2013. ⁴eMarketers, Apr 2014
Convert*Control CommerceConvenience
The four C’s of m-Commerce
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The shift of retail advertising spend
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The biggest priority area for retailers in 2015 is mobile.
– Forrester for Shop.org
Source: The State Of Retailing Online 2015, a Shop.org study conducted by Forrester Research, Feb 2015
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What are your top three initiatives and priorities for your online business in 2015?
Marketing
Omnichannel efforts
Mobile
38%
45%
58%
Larger search marketing
budget in addition to branding and loyalty program.
Website redesign to optimize for small screens tops the list.
(site optimization)
(search and brand)
Source: The State Of Retailing Online 2015, a Shop.org study conducted by Forrester Research, Feb 2015
Top mobile priority and investment areas by retailers
(in-store pickup or ship)
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Mobile influences the path-to-purchase journey
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Research before purchase
Purchase
Check price, validate purchase while at store
Find store locations
Source: Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014
While waiting in line
In store
Getting somewhere
At home
46%
51%
36%
84%
Where are you located when you use a smartphone to access shopping-related info?
Smartphone search drives many types of conversions at all locations
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however
All three screens impact consumer conversion
Retail impressions grew 103% on smartphones and -20% on desktops.¹
Clicks on smartphones grew 41% while remaining constant on desktops.¹
Many smartphone users choose to make purchases on their PCs because they say: it’s fast, trustworthy, and uncomplicated.2
Source: 1Bing Ads internal data, April – Sept 20142Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014
Consumer behavior
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Source: Yahoo & Kenshoo, The Mobile Opportunity Gap, Apr 2014
All three screens impact consumer conversion
When advertisers were asked:
46%
53%
1%Very much
Somewhat
Not impacted
Does having paid search presence across all screens impact consumer behavior?
99% agreed that having a paid search presence across devices makes an impact on consumer conversion.
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1Internet Retailers, Oct 2014
Mobile-optimized websites drive higher conversion ratesBased on study of 53 websites and 180 million online sessions
Conversion rate for smartphone shoppers on mobile-optimized sites
is 160% higher than the rate on non-optimized sites.Average order value on smartphones on mobile-optimized sites is
102% of the average order value for shoppers on PCs of those same retailers’ desktop sites; that number drops to 70% on sites that are not optimized for mobile.
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Yahoo Bing Network marketplace performance trends: Retail
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30% of all Yahoo Bing Network queries come from smartphones
Source: Bing Ads Internal Data
77%
23%
Mobile Query Share March '14
All Devices Mobile
70%
30%
Mobile Query Share March '15
All Devices Mobile
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260% growth in mobile clicks delivered for Retail over two years
Source: Bing Ads Internal Data
2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1
Retail Click Trend
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(February 2014 to February 2015)
Retail (all up)—impressions and clicks
Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication
Impressions and clicks on smartphones are growing at a faster pace than on other devices.
Mobile impressions are growing at a monthly average rate of 10%, compared to 2% for PC+Tablet.
Mobile clicks account for 15% of total clicks across all devices.
Feb
ruary
Marc
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Ap
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2014 2015
Impressions
Mobile Mobile trend
PC + Tablet PC+Tablet trend
Mobile15%
PC+Tablet85%
Average share of total clicks
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Advertisers pay roughly 60% of the CPC cost on PC or tablet.
Retail (all up)—CTR and CPC
Source: Bing Ads internal data, Yahoo Bing Network O&O, US
Increase bid adjustments on mobile to capture user engagement.
October November December January February3.75 %
3.95 %
4.15 %
4.35 %
4.55 %
4.75 %
4.95 %
5.15 %
5.35 %
5.55 %
CTR
Mobile PC + Tablet
October November December January February $0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
$0.55
CPC
Mobile PC + Tablet
(October 2014 to February 2015)
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Apparel & Accessories
Department Stores
Home & Garden
Mass Merchants
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Impressions and clicks on smartphones are growing at a faster pace than on other devices.
Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication
(February 2014 to February 2015)
Home & Garden—impressions and clicks
Mobile impressions are growing at a monthly average rate of 9%, compared to 4% for PC+Tablet.
Mobile clicks account for 14% of total clicks across all devices.
Feb
ruary
Marc
h
Ap
ril
May
Jun
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July
Au
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Sep
tem
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Octo
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Novem
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Decem
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Jan
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Feb
ruary
2014 2015
Impressions
Mobile Mobile trend
PC + Tablet PC+Tablet trend
Mobile14%
PC+Tablet86%
Average share of total clicks
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Advertisers pay roughly 60% of the CPC cost on PC or tablet.
Home & Garden—CTR and CPC
Source: Bing Ads internal data, Yahoo Bing Network O&O, US
Increase bid adjustments on mobile to capture user engagement.
October November December January February4.50 %
4.70 %
4.90 %
5.10 %
5.30 %
5.50 %
5.70 %
5.90 %
6.10 %
6.30 %
6.50 %
CTR
Mobile PC + Tablet
October November December January February $0.40
$0.45
$0.50
$0.55
$0.60
$0.65
$0.70
$0.75
$0.80
$0.85
$0.90
CPC
Mobile PC + Tablet
(October 2014 to February 2015)
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Impressions and clicks on smartphones are growing at a faster pace than on other devices.
Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication
(February 2014 to February 2015) Apparel & Accessories—impressions and clicks
Mobile impressions are growing at a monthly average rate of 12%, compared to 4% for PC+Tablet.
Mobile clicks account for 19% of total clicks across all devices.
Feb
ruary
Marc
h
Ap
ril
May
Jun
e
July
Au
gu
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Sep
tem
ber
Octo
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Novem
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Decem
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Jan
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Feb
ruary
2014 2015
Impressions
Mobile Mobile trend
PC + Tablet PC+Tablet trend
Mobile19%
PC+Tablet81%
Average share of total clicks
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Advertisers pay roughly 50% of the CPC cost on PC or tablet.
Source: Bing Ads internal data, Yahoo Bing Network O&O, US
Increase bid adjustments on mobile to capture user engagement.
Apparel & Accessories—impressions and clicks
October November December January February5.75 %
6.25 %
6.75 %
7.25 %
7.75 %
8.25 %
8.75 %
9.25 %
CTR
Mobile PC + Tablet
October November December January February $0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
$0.55
$0.60
$0.65
CPC
Mobile PC + Tablet
(October 2014 to February 2015)
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Impressions and clicks on smartphones are growing at a faster pace than on other devices.
Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication
(February 2014 to February 2015)
Mass Merchants—impressions and clicks
Mobile impressions are growing at a monthly average rate of 7%, compared to 1% for PC+Tablet.
Mobile clicks account for 19% of total clicks across all devices.
Mobile19%
PC+Tablet81%
Average share of total clicks
Feb
ruary
Marc
h
Ap
ril
May
Jun
e
July
Au
gu
st
Sep
tem
ber
Octo
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Novem
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Decem
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Jan
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Feb
ruary
2014 2015
Impressions
Mobile Mobile trend
PC + Tablet PC+Tablet trend
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Mass Merchants—CTR and CPC
Advertisers pay roughly 70% of the CPC cost on PC or tablet.
Source: Bing Ads internal data, Yahoo Bing Network O&O, US
Increase bid adjustments on mobile to capture user engagement.
October November December January February2.00 %
2.50 %
3.00 %
3.50 %
4.00 %
4.50 %
5.00 %
5.50 %
CTR
Mobile PC + Tablet
October November December January February $0.15
$0.17
$0.19
$0.21
$0.23
$0.25
$0.27
$0.29
$0.31
CPC
Mobile PC + Tablet
(October 2014 to February 2015)
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Impressions and clicks on smartphones are growing at a faster pace than on other devices.
Source: Bing Ads internal data. Yahoo Bing Network, US, O&O and syndication
(February 2014 to February 2015)
Department Stores—impressions and clicks
Mobile impressions are growing at a monthly average rate of 13%, compared to 4% for PC+Tablet.
Mobile clicks account for 14% of total clicks across all devices.
Mobile14%
PC+Tablet86%
Average share of total clicks
Feb
ruary
Marc
h
Ap
ril
May
Jun
e
July
Au
gu
st
Sep
tem
ber
Octo
ber
Novem
ber
Decem
ber
Jan
uary
Feb
ruary
2014 2015
Impressions
Mobile Mobile trend
PC + Tablet PC+Tablet trend
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Advertisers pay roughly 60% of the CPC cost on PC or tablet.
Increase bid adjustments on mobile to capture user engagement.
Department Stores—CPC and CTR
Source: Bing Ads internal data, Yahoo Bing Network O&O, US
October November December January February5.00 %
5.50 %
6.00 %
6.50 %
7.00 %
7.50 %
8.00 %
8.50 %
9.00 %
9.50 %
10.00 %
CTR
Mobile PC + Tablet
October November December January February $0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
CPC
Mobile PC + Tablet
(October 2014 to February 2015)
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Retail—query trend
Weekend
Query volume remains high throughout the day and also peaks around 8PM.
During the week
As consumers leave work, their search behavior shifts to mobile devices peaking around 8PM.
Mobile
PC
Tablet
Optimize mobile budget allocation for after work hours to maximize reach.
Spread budget more evenly on the weekends.
Searches by hour and device During the Week
3AM 6AM 9AM 12PM 15PM 18PM 21PM
Searches by hour and device on the Weekend
3AM 6AM 9AM 12PM
15PM
18PM
21PM
Source: Bing Ads internal dataJuly 2013 – June 2014
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Recommendations
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To catch the right audience, advertisers need to advertise at the right time with the right channel.
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Bing Ads Google AdWords
Targeting selection Unified across devices
Unified across devices
Bid modifiers
Desktop
Not available Not available
Tablet -20% to +300%* Not available
Mobile -100% to +300% -100% to +300%
‘If mobile’ URLs Yes Yes
Mobile Preference Yes Yes
Use the mobile bid modifier to adjust budget allocation
Bing Ads enables bid modifiers for tablet, unavailable in Google AdWords.
Parity with Google on mobile negative bids.
Campaign structures will become parallel, reducing overhead in account management.
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Tweak bid adjustments to secure ad position 1 and 2
Source: Marin Software; 2014 Annual Report
Tweak bid adjustments to secure ad position 1 and position 2 spots
Location, location, location applies here too
Smartphone: 116% drop in CTR from position 1 to position 2
PC: 108% drop in CTR from position 1 to position 2
1–2 2–3 3–4 4–5
5.0%
2.4%
1.7%1.3%
5.2%
2.4%2.1%
1.0%
5.1%
2.9%
1.9%
1.3%
Computers Smartphones Tablets
Tablet: 76% drop in CTR from position 1 to position 2
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SITELINK EXTENSION
S
CALLEXTENSION
S
LOCATIONEXTENSION
S
Bing Ads’ mobile extensions
LOCATION TARGETING
APPEXTENSION
S
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Multiple Extensions No Extensions
Source: Microsoft eye-tracking study
Multiple extensions drive greatest engagement with mobile adsMaximize ad footprint and consumer’s attention
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of smartphone searchers used a store locator or location extension to help them find and visit a local store
One tap to launch maps and directions
Source: Nielsen, The Digital Consumer Report, 2014
If you have a brick and mortar store: Location Extensions drive foot and web traffic
+15% CTR lift for campaigns with Location Extensions
76%
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E-Commerce sites: Sitelink Extensions drive deeper site engagement+10%–15% CTR for campaigns with Sitelink Extensions
Use Sitelink Extensions to feature:
Locations
Social channels
Deals
Products/offers
Mobile content
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1Search Engine Land, Study: 61 Percent Of Mobile Callers Ready To Convert, Sep 24, 2013
Click-to-call drives engagement across online and offline stores
15%–25% lift in CTR for campaigns with click-to-call
52%
Check business hours
Schedule appointment/make reservation
51%
Check product availability47%
Top reasons for calling from search results1
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App Extensions: driving app discovery and download
• Drive downloads: Promote app downloads with Bing Ads on mobile tablet and PC
• Automatic device targeting: Automatically targeted to each user’s device/OS; links directly to App Store, Google Play or Windows Store
• Actionable reporting: Measure installs of and engagement with mobile app
Extensions are automatically targeted to correct OS and app store
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1Internet Retailers, Oct 2014
Mobile-optimized websites drive higher conversion rates
Based on study of 53 websites and 180 million online sessions
Conversion rate for smartphone shoppers on mobile-optimized sites
is 160% higher than the rate on non-optimized sites.Average order value on smartphones on mobile-optimized sites is
102% of the average order value for shoppers on PCs of those same retailers’ desktop sites; that number drops to 70% on sites that are not optimized for mobile.
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Thank You
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