Autos Value Of Search

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Value of SearchAutosMicrosoft Advertising. Intelligent connections.

ObjectiveIllustrate how the automotive consumer journey changed during themonths of COVID-19 (March and April) as compared to the preCOVID-19 period of February

OBJECTIVEHow has the user consumer journey changed icrosoft Internal Data. Jan – April 2020SEMBrandSearch engine marketingSEONon-brandSearch engine optimizationConquestQuery

CHANNEL TRENDSDuring COVID-19, search accounts for 10% points more of adchannel attribution65%75%Microsoft internal data. Click based attribution ( impression ad exposure is not considered). N 1000 users per time frame. Pre Covid Period: Jan 2020 – Feb 2020. During COVID Period: Mar. 2020 – Apr. 2020. USand PC only. Analysis of paid media only. Inclusive of display, native, partner, referral (including affiliates), social, video and paid search. Publisher and platform agnostic. Multiple paid digital media clicktouchpoints required for analysis inclusion.

CHANNEL TRENDSNative remains a key channel during COVID-19; 72.5% ofnative ad clicks lead to those SEM clicksChannel FromChannel To123Touchpoint RowsSubsequent Touchpoint ColumnsMicrosoft internal data. Click based attribution ( impression ad exposure is not considered). N 1000 users. During COVID Period: Mar. 2020 – Apr. 2020. US and PC only. Analysis of paid media only. Inclusive ofdisplay, native, partner, referral (including affiliates), social and paid search. Publisher and platform agnostic. Multiple paid digital media click touchpoints required for analysis inclusion.

SEARCH TRENDSSince the attribution of SEM and SEO remained constant, advertiserswho exited the marketplace lost their paid clicks to competitors72%73%71%28%27%29%Microsoft Internal Data. Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makes in February, March or April 2020.

SEARCH TRENDSAs search grows in attribution, it also becomes more efficientBrandNonbrandConquestMicrosoft Internal Data. Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makesin February, March or April 2020.

QUERY TRENDSShoppers move up the funnel from comparison to researchINITIATIONRESEARCHNon-brand clicksremain strongdespiteinvestment cutsCOMPARISONPURCHASEMeanwhile, crossshoppingdecreases Microsoft Internal Data. Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makes in February, March or April 2020. Affinities include only multi-search paths and are basedonly on last 10 touchpoints leading up to a conversion.POST

QUERY TRENDSIn February, there were 20 distinct cross-shopping relationshipse.g. Users that searched for ‘acura’ were 2.17x more likely to also search for ‘lexus’Query pair‘acura’ ‘lexus’‘chevy’ ‘dodge’‘honda’ ‘hyundai’‘bmw’ ‘mercedes-benz’‘dodge’ ‘jeep’‘chevy’ ‘ford’‘bmw’ ‘acura’‘acura’ ‘honda’‘hyundai’ ‘nissan’‘dodge’ ‘ford’‘honda’ ‘toyota’‘bmw’ ‘lexus’‘chevrolet’ ‘dodge’‘honda’ ‘nissan’‘bmw usa’ ‘mercedes-benz’‘nissan’ ’toyota’‘acura’ ‘cadillac’‘hyundai’ ‘toyota’‘jeep’ ‘chevy’‘chevrolet’ ‘ford’Feb. 281.231.171.121.091.061.061.031.02Average February lift1.34Microsoft Internal Data. Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makes in February, March or April 2020. Affinities include only multi-search paths and are basedonly on last 10 touchpoints leading up to a conversion.

QUERY TRENDSBy April, there were only 7 distinct cross-shopping relationshipse.g. Users that searched for ‘bmw’ were 1.38x more likely to also search for ‘mercedes-benz’Query pairApril lift‘bmw’ ‘mercedes-benz’‘honda’ ‘toyota’‘bmw’ ‘lexus’‘cadillac’ chevrolet’‘honda’ ‘nissan’‘chevrolet’ ‘ford’‘nissan’ ‘toyota’1.381.211.211.141.071.051.03Average April lift1.16Microsoft Internal Data. Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makes in February, March or April 2020. Affinities include only multi-search paths and are basedonly on last 10 touchpoints leading up to a conversion.

QUERY TRENDSUser ad exposure also changed; likelihood for cross-classimpressions rose 12%, while distinct luxury impressions fell -49%Economy & LuxuryimpressionsLuxury A & Luxury BimpressionsEconomy A & Economy Bimpressions 12%-49% 3%Why? Searchers stayedWhy?Why?Driven by the -25% in conquestingand the 1.5% in retention clicksIncentive clicks ( 22%) kept crossshopping even despite theinvestment declinesIn likelihood users were served animpression from an economy anda luxury brandupper-funnel, clicks only decreased11% in non-brand despite 35%decrease in spendIn likelihood users were served animpression from two distinct luxurybrandsIn likelihood users were served animpression from two distincteconomy brandsMicrosoft Internal Data. Journeys end on a last click to 1 of 15 OEM makes in February or April 2020. Affinities include only multi-search paths and are based only on last 10 touchpoints leading up to aconversion.

SUMMARYThe online user journey is more SEM focused and oft Internal Data. Jan – April 2020SEMBrandSearch engine marketingNon-brandSEOSearch engine optimizationQuery

SUMMARYValue of Search key takeaways:Paid Search experiences increased engagement, at more efficientCPCs and with the chance for increased consumer brand influence During this most recent systematic global event (COVID-19), searchmarketing has become an even more important channel as illustrated by its10% points larger attribution role Similarly, the partner network grew in attribution by 1.8% points, whilethe native ad channel continued to fuel SEM clicks Given the attribution between SEM and SEO remained constant, advertiserswho exited the marketplace lost their paid clicks to competitors whomaintained their evergreen strategy What’s more, CPCs became more cost-efficient, thus furthering bolsteringadvertisers who remained in the marketplace Even as advertisers focused on brand-spend, clicks for non-brand wereresilient. Influencing users across the consumer journey remains essential. Finally, users showed a decrease in likelihood to cross-shop, signaling thatexisting advertisers in the marketplace could generate greater brand-loyaltyMicrosoft Internal Data. Jan – April 2020

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

APPENDIX

Query path data methodology0102USER BASEConsumer searchpaths that end on anautomotive paidclickSource: Microsoft Internal Data0304OEM PAID ADCOMPETITIVE SETDEVICESTIMELINEAcura, BMW, Cadillac,Chevy, Chrysler, Dodge,Ford, Honda, Infiniti, Jeep,Lexus, Lincoln, Mercedes,Nissan, RAM, ToyotaInclusive of all devicesPre-COVID-19February 2020During COVID-19March and April 2020

Consumer decision journey data methodology0102USER BASEConsumer browsingpaths that include atleast 10 automotiveweb domainengagementsSource: Microsoft Internal Data0304OEM TIER 1COMPETITIVE SETDEVICESTIMELINE40 OEM Tier 1 Sites4 Third Party SitesPC activity onlyPre-COVID-19Jan. – Feb. 2020During COVID-19Mar. – Apr. 2020

Microsoft Advertising. Intelligent connections.

Microsoft Owned & Operated data. Journeys end on a last click to 1 of 15 OEM makes in February, March or April 2020. Affinities include only multi-search paths and are based only on last 10 touchpoints leading up to a conversion. QUERY TRENDS e.g. Users that searched for ‘bmw’ were 1.38x more likely to also search for ‘mercedes-benz’

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