RetailGet more out of your mobile campaigns

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

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

Mobile changes consumers’ shopping behavior

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

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

The shift of retail advertising spend

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

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)

Mobile influences the path-to-purchase journey

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

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

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.

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.

Yahoo Bing Network marketplace performance trends: Retail

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

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

(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

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

uary

Feb

ruary

2014 2015

Impressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

Mobile15%

PC+Tablet85%

Average share of total clicks

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)

Apparel & Accessories

Department Stores

Home & Garden

Mass Merchants

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

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

Mobile14%

PC+Tablet86%

Average share of total clicks

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)

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

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

Mobile19%

PC+Tablet81%

Average share of total clicks

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)

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

ber

Novem

ber

Decem

ber

Jan

uary

Feb

ruary

2014 2015

Impressions

Mobile Mobile trend

PC + Tablet PC+Tablet trend

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)

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

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)

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

Recommendations

To catch the right audience, advertisers need to advertise at the right time with the right channel.

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.

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

SITELINK EXTENSION

S

CALLEXTENSION

S

LOCATIONEXTENSION

S

Bing Ads’ mobile extensions

LOCATION TARGETING

APPEXTENSION

S

Multiple Extensions No Extensions

Source: Microsoft eye-tracking study

Multiple extensions drive greatest engagement with mobile adsMaximize ad footprint and consumer’s attention

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%

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

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

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

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.

Thank You