Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
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MICROSOFT ADVERTISING Australia’s smartphone opportunity on Microsoft Search Advertising Microsoft Advertising. Great relationships start here.
Smartphone sales in Australia are forecasted to grow 16.2% in 2021 to 9.1 million units Source: 5G expected to spur, Link
5G enabled devices will lead smartphones sales in 2021 In 2021, 55% of the handsets sold would be 5G enabled.1 43% believe they will have better connectivity with 5G.2 “We know that our customers want 5G, in fact eight out of every 10 devices we sell in store today are 5G 47% of the early adopters are 18-34 years old. 2 capable” -Optus 3 Source: 1. 5G expected to spur smartphone sales, Link 2. Driving the need for 5G, Deloitte, Link 3. Optus Australia’s fastest 5G Network, Link
New device arrivals follow three key stages Pre-announcement, pre-order and release (+sustain) Pro tip: Phase your budget to cover each stage. Allocate 10% to pre-announcement, Weekly search volume: iPhone 12 30% to pre-order and 60% for release. Search volume trends Announcement, 13th October. 100 Pre-order, 16th October 75 Release, 23rd October 50 Pre-announcement 25 0 30-Aug 6-Sep 13-Sep 20-Sep 27-Sep 4-Oct 11-Oct 18-Oct 25-Oct 1-Nov 8-Nov 15-Nov 22-Nov 29-Nov 6-Dec 13-Dec Proprietary Microsoft Advertising Source Data | Queries containing iPhone 12 | Search volume, August 2020-December 2020
Early adopters search for release information before launch Searches for features, accessories and price peak in 3rd and 5th week from launch Weekly search volume indexed, iPhone 12, 2020 125 20 Announcement, 13th October 100 Pre-order, 16th Oct 15 75 10 50 5 25 0 0 -5 30-Aug 6-Sep 13-Sep 20-Sep 27-Sep 4-Oct 11-Oct 18-Oct 25-Oct 1-Nov 8-Nov 15-Nov 22-Nov 29-Nov 6-Dec 13-Dec 20-Dec 27-Dec Pro tip: Optimize ad copy to include key new model features and leverage site links. Set up accessories related campaigns. Proprietary Microsoft Advertising Source Data | Queries containing iPhone 12 | Search volume, August 2020-December 2020 * Represented on secondary axis
Forecast for 2021
Search volume for iPhones are expected to double this September iPhone searches increase 100%-150% during launch month Search volume over time & forecasts: iPhone searches Search volume over time iPhone 13, iPhone 13 Pro iPhone 12, iPhone 12 Pro +112%* iPhone 11, iPhone 11 Pro iPhone SE +142%* +34%* Search Volume Forecast * MoM uplift 75% year-over-year growth in impressions Pro tip: Plan your campaign budgets to take advantage of increased consumer interest this 41% year-over-year growth in clicks launch season. Proprietary Microsoft Advertising Source Data | Queries containing iPhone | Search volume, 2019-2021
For key months, we recommend… Based on top 2K iPhone queries …an average monthly spend of $19k for 23k average monthly click opportunity 29.4K 26.K 26.9K 24.6K 24.8K 22.4K 19.8K 16.3K 13.1K 6.6K Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Est. Clicks Est. Investment Proprietary Microsoft Advertising Source Data | Queries containing iPhone | Search volume, August 2021-December 2021
Smartphone purchase channel and penetration rates Smartphone landscape
Despite a high smartphone penetration rate, the repurchase cycle remains healthy Key drivers $9.5B Revenue forecast Growth of consumer sentiment over next 5 years.1 for 2021-2022, growth 1.2%.1 3G mobiles will be deprecated by 2024.3 Students, work from home professionals and 47% technology enthusiasts are keen on getting the 18-24 year olds latest devices.2 purchased a smartphone last year. 2 5G and foldable smartphone to drive interest.2 Source: 1. IBISWorld, Industry Report: Mobile Phone and Tablet Wholesaling in Australia. September 2020. 2. Deloitte, Digital Consumer Trends 2020. 3. Australian 3G network shutdown, Link
24-month contract purchase increased over the past 5 years Smartphone purchase channels, 2019-2020 Retailers 46.2% The rising price of smartphones has meant that more consumers are purchasing through carriers and led to retailers accounting for a declining share of revenue over the past 5 years. Telco carriers 53.8% Source: IBISWorld, Industry Report: Mobile Phone and Tablet Wholesaling in Australia. September 2020.
Maximize performance by combining Microsoft Search & Native strategies (US) Technology & Telecommunications Ad Effectiveness Study Users exposed to both Microsoft Search ads & Search Native Microsoft Audience ads are only only more likely to visit and convert on a Technology & Telecommunications advertiser’s website Both search & compared to those who are native exposed to only one type of ad. 2.7x 3.3x Higher visitation rate Higher conversion rate vs. only search ad exposure vs. only search ad exposure Notes: Results may vary for each advertiser based on campaign settings, targeted audiences, and other factors. Lift metrics represent an average of all Technology & Telecommunications advertisers with completed lift studies to date (Feb. 2021). These advertisers may be a non-representative sample of all advertisers on the marketplace. Lift measured between exposed users and a control group of eligible unexposed users, with lift represented on a per-user basis. Average user count per advertiser study = 844K
Key takeaways
Raise awareness and hype around announcement Pre-announcement INSIGHTS ACTIONS New device launch follows 3 • Phase your budget according to each stage. Allocate 10% to pre-announcement, stages. 30% to pre-order and 60% for release. • Create remarketing lists to re-connect with searchers who showed interest in the pre-launch phase. Short window of increased • Feature count-down ads for livestream announcement events. demand. • Leverage Sitelink Extensions to link to flagship retail stores. • Ensure high visibility to capitalise on increased demand. • Leverage Microsoft Audience Network along with search to reach out to users Re-kindled interest for older looking for older models towards new flagship model. models. • Remarketing to people who showed interest in older models for upgrades.
Make it easy to pre-order, upgrade, switch and compare Announcement and pre-order INSIGHTS Device purchases driven by • Use in-market audience and similar audience feature to reach out to relevant young people, WFH audiences professionals and Tech • Use remarketing to connect with users due for a device upgrade. enthusiasts looking for upgrades. • Telcos and retailers should align budget planning and campaign New devices bundled with Telcos activity to the release cycle. plan are the main outlet for • Leverage rich ad format and real estate on Microsoft Advertising Shopping phone buyers. Campaigns.
Release and sustain consumer interest by ensuring your ads are on ACTIONS INSIGHTS New model buyers conduct • Optimise ad copy to include key new model features and leverage sitelinks. detailed research on features • Use Review Extensions to build your brand trust and specs. Accessories and features • Set up accessories related campaigns searches pick up 3rd and 5th • Set up remarketing campaigns to upsell accessories. week from launch
Summary ❑ Prepare for high consumer demand for smartphones, especially iPhones as searches are forecasted to double this September. Expect brick and mortar sales to rebound and ecommerce to sustain its growth momentum. ❑ Anticipate increased interest in both new and old model phones this year. Consumer interest in carriers brand terms is above pre-pandemic “normal”, don’t lose this audience! ❑ Invest in emerging non-brand keywords to expand your ad coverage. ❑ Take advantage of growing 5G search volume. Reference emerging keywords to find gaps and opportunities for coverage. When targeting consumers for iPhone 5G, keep in mind that they may not explicitly search for 5G (unlike with Samsung).
To get actionable data, insights and best practices to help make decisions and grow your business, visit MicrosoftAdvertising.com/Insights
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