Microsoft Advertising Insights Retail Father's Day (U.S.)

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MICROSOFT ADVERTISINGFather’s DayWhat to expect this seasonMicrosoft Advertising. Intelligent connections.

Sporting Apparel reportedthe strongest YoY clicks gainsover the Father’s Day season,up 26%Historically, Father’s Dayqueries emerge over 30days outDespite recent lockdownorders, consumers continue tocelebrate their loved ones, butare doing so “virtually”Be mindful of top growingsub-categories this holidayseasonEnsure Father’s Day promotions,offers and campaigns are enabledas relevant searches begin 30days prior to the eventAdd terms like “virtual” or“video” when marketingholiday planning regardless ofoccasion

Father’s Day2019 lookback

Deliverable gifts primed to rise, while experiencesare likely to fallTypes of gifts users plan to purchase for Father's Day, % of respondentsGreeting cards61.7%Special outing46.8%ClothingGift cardsBooks or musicPersonal care products20.5%Consumer electronicsTools/appliancesOtherHome improvement/gardening suppliesSporting goodsAutomotive accessories17.6%Greeting cards are taking amore virtual approach thanever before with the growingpopularity of eCards or groupbirthday videos to celebrateloved onesSpecial outings will likely fall tothe bottom of the ranking list yearin accordance with recentconsumer buying behaviorsPersonal care, namely Shaving &Grooming, recently reported unseasonalgrowth due to shelter in place limitationsTools and appliances have also seen unseasonalgrowth as consumers are eager tackle home andhobby-based projectsNational Retail Federation (NRF), "Father's Day Spending Survey" conducted by Prosper Insights & Analytics as cited in press release, May 30, 2019

Gifters showed a growing interest in specific sub-categoriesYear-over-year (YoY) click growth by retail sub-category26.2%Sports & Fitness Apparel20.9%20.5%19.9%Shipping & PackingOnline Grocery Shopping& Grocery DeliveryPhoto & VideoMicrosoft Internal Data, US Only, 5/25/19 - 6/21/19 vs. 5/26/18 - 6/22/18

Consumers seek inspiration and ideas when it comes to shopping for dadTop searched queries containing “father’s day”“father's day gift baskets”“father's day deals”“father's day gift ideas”“father's day cards”“father's day presents”“unique father's day gifts”“father's day card”“father's day crafts”“best father's day gifts”“printable father's day cards”“father's day sale”“cheap father's day gifts”“personalized father's day gifts”Microsoft Internal Data, US Only, 5/17/19 – 6/16/19

Last year, searches started over 30 days out, peaking on Father’s DayFather’s Day indexed searches and cost-per click (CPC) by day10010055343Higher volume,lower CPCIndexed SearchesMicrosoft Internal Data, US Only, 5/17/19 – 6/16/19Indexed CPC

Although Microsoft Shopping Campaigns drove more clicks as the holidayapproached, spend allocation diminishedFather’s Day indexed Shopping clicks and percent of Shopping spend by day17%110Higher volume, opportunity toboost Shopping spend allocation10018%16%9014%7012%10%508%30106%Shopping accounted for 9%of total Father’s Day clicks6%6%4%2%(10)0%Indexed Shopping ClicksMicrosoft Internal Data, US Only, 5/17/19 – 6/16/19% Shopping Spend

Mobile searches begin uptick the month prior to Father’s DayFather’s Day mobile searches by dayAboveaveragesearch daysMay 2019SMTJune 523242526272829262728293031130Microsoft Internal Data, US Only, 5/1/19 – 6/31/19

More recentconsiderationsRelevant categories withunseasonal growth

Analysis compares pre vs. post timeframesDetermined by the U.S. COVID-19 National Emergency Declaration datePre January 1st – March 13thPost March 14th onward

Consumers continue to celebrate special events “virtually”Top searched Occasions & Gifts queries containing “virtual”“virtual baby shower““virtual easter egg hunt”“virtual birthday card”“virtual card”“virtual baby shower games”“virtual birthday party ideas”“virtual graduation”“virtual wedding”“virtual birthday card group”“virtual gifts”“virtual seder”“virtual passover”Microsoft Advertising Internal Data, Mar 31 – Apr 6, 2019 v. 2020*(3/31/20-4/6/20 vs. 3/31/19-4/6/19)“virtual”queries up by 25X YoY*

Cards & Greetings clicks reported a 70% lift to forecast post shelter in place2020 weekly indexed searches AND clicks, actuals and pre COVID-19 forecastClick lift drove a 29%improvement to click yield inthe post periodPost Shelter in Place announcementSearchesMicrosoft Internal Data, US Only, January – April 2020Forecasted SearchesClicksForecasted Clicks

No barber, no sweat! Consumers take Shaving & Grooming into their own hands2020 weekly indexed searches and clicks, actuals and pre COVID-19 forecastClick lift led by PersonalGrooming Kits &Equipment, up 2.5X YoYin the post periodPost Shelter in Place announcementSearchesMicrosoft Internal Data, US Only, January – April 2020Forecasted SearchesClicksForecasted Clicks

Tools & Appliances clicks outpaced forecast at the start of the post period2020 weekly indexed searches and clicks, actuals and pre COVID-19 forecastPost Shelter in Place announcementSearchesMicrosoft Internal Data, US Only, January – April 2020Forecasted SearchesClicksForecasted Clicks

Strategies and recommendationsLearn immediate and recovery-phase strategies, and how to approach newopportunities and optimize account health in the Digital Advertiser’s Guide toCOVID-19

advertising.microsoft.com

“virtual birthday card” “virtual card” “virtual baby shower games” “virtual birthday party ideas” “virtual graduation” “virtual wedding” “virtual birthday card

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