El océano del eCommerce
Microsoft Advertising Insights
navegando a través de las olas
Luca Immovilli, Analytical Lead
eCommerce is
booming, but is it
going to be a smooth
ride?
Partner with us to grow
your business and
reach new customers
How to leverage our
offerings to improve
your campaigns.
Ads, bid strategies,
Audiences and more...
Agenda
Global eCommerce
growth trends
Retail trends on
our Network
Ad Product
Recommendations
An unprecedented
high-tide
Global eCommerce
growth trends
eCommerce Retail growing and gaining significant rise
in online shopping during lockdown
Source: eMarketer, September 2020
15.5%
16.9%
18.1%
19.4%
19.8%
21.5%
Asia-Pacific
Western Europe
North America
Latin America
Middle East & Africa
Central/Eastern Europe
+16,6%expected global eCommerce
Sales growth in 2020
14.7%
16.2%
17.1%
20.5%
22.9%
UK
Germany
France
Italy
Spain
+16,9%expected Western Europe eCommerce
Sales growth in 2020
Boosted by the increased number of people shopping
online – that will also continue to do so
Source: eMarketer, September 2020
3.5%
3.7%
5.1%
5.9%
6.0%
8.6%
Western Europe
North America
Central/Eastern Europe
Middle East & Africa
Latin America
Asia-Pacific
+6,9%expected global eCommerce
Buyers growth in 2020
1.5%
1.9%
3.8%
5.4%
9.5%
UK
Germany
France
Spain
Italy
+3,5%expected Western Europe eCommerce
Buyers growth in 2020
There is also an increased average number of orders by
users seen across the globe
Source: Salesforce, The Shopping Index, Q2 2020
37%
51%
13%
63%
81%
46% 43%
82%
56%
103%
32%
56%62%
109%
57%
145%
40%
65%
17%
47%
57%
73%
43%
103%
Global France Germany Netherlands Nordics Spain UK US
PC/Tablet Mobile Total
Ecommerce Retail
Average volume of orders by user (Year-over-year (YoY) growth, Q2 2020)
Unprecedented sales growth was seen for “essential”
merchandise when it comes to enduring a lockdown
+134%Home &
Garden
+138%Health &
Beauty
+73% Apparel General
+35%Apparel Luxury
Global digital commerce growth in Q2 2020
+181%Toys &
Learning
Source: Salesforce, The Shopping Index, Q2 2020
Not an easy
path though
Challenging waves are
on the way
In a moment of uncertainty, rather than sticking to
familiarity, consumers did the opposite
Source: Periscope by McKinsey, “Retail Reimagined: The new era for customer experience”, August 2020
of respondents said they
tried new brands or made
purchases with a new
retailer
40%
Source: Periscope by McKinsey, “Retail Reimagined: The new era for customer experience”, August 2020
In the depth of
our Network
Latests on Retail from the
Microsoft Advertising
Network
6%
38%
29%
57%
90%
31%
46%
14%13%
45%
14% 13%
60%
11%
28%
11%
Jan Feb Mar Apr May Jun Jul Aug
EMEA – Retail YoY % change
Search Volume YoY Clicks YoY
EMEA Retail speeds up dramatically both in terms of traffic and clicks
Source: Microsoft Internal Data, EMEA, Jan 2019 – Aug 2020 YoY
Search volume YoY growth
(January to August)
43%
Click volume YoY growth
(January to August)
26%
50%49%
33%
37%
21%
17%
27%
30% 32%
15%
France Germany Italy Spain United Kingdom
EMEA – Retail YoY % change
Search Volume YoY Clicks YoY
The growth in traffic and clicks was seen in all the top five markets
Source: Microsoft Internal Data, EMEA, Jan 2019 – Aug 2020 YoY
Consumer Electronics and Beauty were the fastest growing categories
Source: Microsoft Internal Data, EMEA, Jan 2019 – Aug 2020 YoY
2%
26%
49%
44%
22%
2%
30%
35%
4%
28%
Apparel Beauty & Personal Care Consumer Electronics Food & Groceries Home & Garden
EMEA – Retail YoY % change
Search Volume YoY Clicks YoY
Consumer Electronics and Food & Groceries were the
fastest growing categories
Source: Microsoft Internal Data, Spain, Jan 2019 – Aug 2020 YoY
7%
21%
51%
34%
13%10%
14%
52% 52%
32%
Apparel Beauty & Personal Care Consumer Electronics Food & Groceries Home & Garden
Spain – Retail YoY % change
Search Volume YoY Clicks YoY
A massive opportunity as retail cost per click (CPC) stays lower
than last year
Source: Microsoft Internal Data, EMEA, Jan 2019 – August 2020 YoY
Jan Feb Mar Apr May Jun Jul Aug
EMEA Retail CPC
2019 2020
-7% YoY
-14% YoY
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Au
g
Sep
Oct
No
v
Dec
Retail EMEA Search Volume Forecast
Mid Lower 2019 Forecast 2020
And the best is yet to come… Let the Winter season begin
Source: Microsoft Internal Data, EMEA, Jan 2019 – August 2020 + Forecating for H2 reminder
EMEA Clicks YoY Growth
(2019 vs 2018)
23%
SPAIN Clicks YoY Growth
(2019 vs 2018)
36%
Increased online shopping activity from older generations
Aside few exceptions, search volume grew across all age-groups and markets. However, age group distribution
is also changing with older generations (65+) with previous low/no online shopping are now increasing their
activity (+74% YoY searches in the region). This is particularly true for France, Germany and the UK.
37%
80%
93%
72%74% 74%
129%
40%34% 32%
21%
53%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
ALL MARKETS France Germany Italy Netherlands Spain Sweden United Kingdom
YoY change in search volume by age group
(2020H1 YoY%, All Retail categories)
18-24 25-34 35-49 50-64 65+
Catch the high wavesAd Product recommendations
A higher % of conversions are driven by Microsoft
automated bidding strategies
Source: Microsoft Internal Data, Jan-August 2020; EMEA
10% 10% 9% 8% 7% 7% 9% 13%
10% 10% 11% 15%
34%
54% 48% 37%
80% 80% 80% 77%
59%
39% 43%50%
Jan Feb Mar Apr May Jun Jul Aug
Retail conversions by bid strategy (EMEA)
Target CPA eCPC Manual CPC
A growing % of Retail conversions are driven by
Responsive Search Ads in EMEA
Source: Microsoft Internal Data, Jan-August 2020; Top EMEA retail accounts (>top 500 list)
5% 6% 8% 9% 10% 11% 12% 13%5% 5%6% 7% 8% 9% 9% 8%
90% 89% 86% 84% 82% 80% 79% 79%
Jan Feb Mar Apr May Jun Jul Aug
Retail conversions by format (EMEA)
Responsive Search Ads Shopping Ads Exta & Text
A higher Retail conversions rate with Remarketing in EMEAPeriod : July 2020
Source: Microsoft Internal Data; July 2020; EMEA
127% 129%
116%
85% 85%
Beauty & Personal Care Books Clothing & Accessories Department Stores Pet Supplies
Conversion rate (CVR) uplift with Remarketing Audiences
(EMEA, July 2020)
A higher Retail conversions rate with In-market Audiences in EMEAPeriod : July 2020
Source: Microsoft Internal Data; July 2020; EMEA
24%
90%
20%
30%
13%
Beauty & Personal Care Books Clothing & Accessories Department Stores Pet Supplies
CVR uplift with In-market Audiences
(EMEA, July 2020)
Microsoft Audience Network: Users exposed to both Microsoft
Audience Network and Search ads for Retail1 are more likely to visit
and purchase compared to users only exposed to Search
Microsoft Internal data; 3-week range per advertiser (2-weeks MSAN exposure +1-week post-exposure activities), within 1/6/20 – 6/27/20
1. Based off performance for multiple top retailers; +10.6M study users
2. Lift represents the difference between percent of users in the treatment (exposed) vs. control (eligible, not exposed)
Post-exposure conversion rate1
X3.8
X3.5
Why use Dynamic Search Ads (DSA)?WHAT THE DATA SHOWS
-4.23%CPC
Lowering cost per click (CPC)*
Dynamic search ads have a 4.23% lower CPC than ads with non-exact
match type keywords
Discovering unique queries^
On average, ~90% of DSA impressions for a given DSA user are discovered
from queries that were only found by DSA
+3.8%incremental click volume across all
search ad campaigns
Driving incremental click volume^
On average, the unique queries that DSA discovers are driving a 2.5% increase in
total clicks across all search ad campaigns
~90%DSA impressions from queries only
found by DSA
*Microsoft Advertising internal data, May 2019, billable traffic, EN-US.
^ Microsoft Internal Data, Dynamic Search Ads Click Data United States All Networks 2020-06-21 – 2020-06-22
Be ready to ride the
growing waves!
Defend your
position and brand
to expand
Leverage Ad Types
and Bid Strategies
to improve
performance
Key takeaways