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Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
MICROSOFT ADVERTISING

Australia’s smartphone opportunity
on Microsoft Search Advertising

Microsoft Advertising. Great relationships start here.
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
Industry Outlook
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT 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
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
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
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
Forecasts and query trends

Consumer search trends on Microsoft
Search Advertising
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
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
Australia's smartphone opportunity on Microsoft Search Advertising - MICROSOFT ADVERTISING - Microsoft Advertising. Great relationships start here.
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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