Microsoft Advertising Insights Consumer eCommerce …...N=746 N=175 Average apparel spend by brand...

Microsoft Advertising

Insights: Consumer

eCommerce shopping

behaviors

A behavioral analysis of the

online shopping journeys

for apparel, health and

beauty, and electronics

2

Microsoft Advertising and

Luth Research have

partnered together to

conduct research and gain

deeper insights into how

search engine marketing

(SEM) and digital commerce

behaviors impact the online

path to purchase.

This eBook takes a deep dive

into the behavioral analysis

of the role search plays in

ecommerce shopping

journeys for apparel, health

and beauty, and electronics.View all Microsoft Advertising Insights

We understand that the

marketplace has changed

dramatically since this study was

fielded. Now more than ever, it’s

important to understand digital

behaviors in the path to

purchase. While this eBook focuses

on insights before the pandemic,

we’re confident that they’re still

very useful as we turn the corner,

and our economy returns.

https://about.ads.microsoft.com/insights

Methodology

Total:

• 12,336 apparel shoppers.

• 11,297 electronics shoppers.

• 6,596 health and beauty shoppers.

• Across 18 months, January 2018 to June 2019, in the United States.

• Passively metered behavioral data from computer and mobile devices.

Other terminology used:

• Brand sites = selected sites that only sell their brand products and have an e-commerce

function.

• Search = search engine search.

• Search visits = all category relevant search engine visits five minutes before visiting the relevant

brand sites or Amazon.

The selected insights in this report employed Luth Research’s ZQ Intelligence, a passive metering

technology and its database of digital behaviors to analyze search trends in the context of the

overall path to purchase.

1 Who is converting more?

2What are the digital behavioral

markers of those converting more?

3 How do you find them?

We examined

shopping

journeys for

apparel, health

and beauty, and

electronics to

explore three

key topics.

Insight summary

Shoppers who use

search spend more

APPAREL CASE STUDY

Amazon purchasers who search first spend more

Online Apparel Shopping Behavioral Analysis; Microsoft Advertising Market Intelligence, September 2019, J. Randolph.

Source: Luth Research ZQ Intelligence Passive Metering Panel Data.

Amazon apparel purchasers who perform an apparel search within five minutes

before purchasing on Amazon spend over 73% more than those who do not.

If you maintain a

strategy to focus on

Amazon, search is a

necessary and critical

touch point for

influencing and

acquiring your high-

value customers.$56.99

$98.50

$0

$20

$40

$60

$80

$100

$120

Amazon purchasers WITHOUT at least one

apparel purchase preceded immediately by an

apparel search within five minutes

Amazon purchasers WITH at least one apparel

purchase preceded immediately by an apparel

search within five minutes

+73% Increase

N=456N=2958

When the window of looking for

search behavior is widened from five

minutes to six weeks, searchers still

spend 70% more than non-searchers.

Average apparel spend by Amazon purchasers with or

without an apparel search within five minutes prior

$147.63$184.29

$0

$40

$80

$120

$160

$200

Brand site purchasers WIITHOUT at least one

apparel purchase preceded by an apparel search

within five minutes

Brand site purchasers WITH at least one apparel

purchase preceded by an apparel search within

five minutes

Brand site purchasers who search first spend more



Brand site apparel purchasers who perform an apparel search within five minutes before

purchasing on a brand site spend 25% more than those who do not.

+25%Increase

N=746 N=175

Average apparel spend by brand site purchasers with or

without an apparel search within five minutes prior

When the window of looking for

search behavior is widened from five

minutes to six weeks, searchers still

spend 47% more than non-searchers.

Comparing the direct

visitors and searching

visitors shows that

investing in search

advertising is

important in order to

influence the high-

spending shoppers.

Shoppers who use search1. Become purchasers more frequently, and

2. Become repeat purchasers more frequently

Looking back at our apparel case study, here is what the conversion funnels look like between

searchers and non-searchers to brand sites:

28% 17%

Searchers: Shoppers who had AT LEAST ONE visit

to a brand site for apparel shopping that was

preceded (within five minutes) by an apparel search.

Searching

shoppers

Purchasers

Repeat

purchasers

Non-searchers: Shoppers who NEVER HAD EVEN

ONE visit to a brand site for apparel shopping that was

preceded (within five minutes) by an apparel search.

Non-searching

shoppers

Purchasers

Repeat

purchasers



% who purchase

% of purchasers

who repeat

Insight summary

Search is a huge

part of the journey

and correlates with

higher conversion

ELECTRONICS CASE STUDY

Brand site shoppers using search have an 82% greater

probability of purchasing on brand sites

Based on electronics related search terms conducted five minutes prior to electronics related visits to brand sites.

Online Electronics Shopping Behavioral Analysis; Microsoft Advertising Market Intelligence, September 2019, J. Randolph.


When electronics

shoppers search

before visiting a

brand site, they’re

more likely to make a

purchase.

82%

Increase in likelihood to purchaseShoppers using a search engine versus shoppers

not using a search engine.

45%brand site shoppers

use search engines

before visiting.

15%brand site purchasers

use search engines

before visiting.

Of brand site shoppers:

Based on apparel related search terms conducted 5 minutes prior to apparel related visits to brand sites.



Nearly 1 in 2

shoppers use a

search engine

before visiting.

15% use a

search engine

before

purchasing.

Search provides many valuable opportunities to connect with

Amazon shoppers during their shopping journey

Overall Shopping Journey = all the search engine searches and visits to brand sites, Amazon and other key electronics related retailers during a journey to buy an electronics item.

A typical journey averages 4-6 weeks.



Electronics shoppers on Amazon are not “attention loyal” while shopping. They continue to rely on search

engines to discover and refine their purchase decisions.

77%Amazon shoppers used

search engines as part of

their overall

shopping journey.

11.8Amazon shoppers on

average used 11.8

searches during their

overall shopping journey.

3.9Amazon shoppers on

average made 3.9

“switches” to and from a

search engine during their

overall shopping journey.

AmazonDuring electronic shopping journeys that include Amazon:

Electronics shoppers are multi-tasking across their

purchase decision journey

Overall Purchase Journey = all the search engine searches and visits to brand sites, Amazon and other key electronics related retailers during a journey to buy an electronics item.

A typical journey averages 4-6 weeks.



Amazon shoppers use

search engines

concurrently during their

shopping at Amazon.

Amazon shoppers on

average perform 2.2

searches concurrently

while shopping on

Amazon.

Amazon shoppers on

average make 2.6 “switches”

to and from a search engine

while concurrently

shopping on Amazon.

AmazonConcurrently (during the same visit, perhaps in another tab or browser)

92% of these shoppers

abandon Amazon without

ever making a purchase.

17% 2.2 2.6

Many shoppers are using search engines while also on the Amazon site

When buying electronics, nearly 40% of digital shopping

moments take place in search

*Social only includes Pinterest and Instagram considering relevance for the category.** Retailers exclude Amazon.



Digital shopping moments = searches or site visits.

40%

<1%21%12%

Search engines

Amazon

Brand sites

27%

Retailers**Social

media*

Insight summary

Searches with product

detail and brand yield

higher conversions.

Non-brand search terms

are important.

HEALTH AND BEAUTY, AND

ELECTRONICS CASE STUDY

Of the 18% of brand site purchases preceded by searches . . .

18% of brand site purchases follow an electronics

search within five minutes.

Non-brand searches account for 40% of

those purchases.

Based on electronics related search terms conducted five minutes prior to electronics related visits.



60% are brand searches 40% are non-brand searches

52% 52% 56%

22% 24% 16%

26% 24% 28%

Total purchasers Amazon purchasers Brand site purchasers

Brand only

Non-brand only

Brand and non-brand

Of electronics purchasers who use a search engine, 22% of

them are using non-brand terms only

Based on electronics related search terms conducted five minutes prior to electronics related visits to Amazon or brand sites.



% of total purchasers broken by types of search terms they use

Non-brand terms remain very

important even for brand sites,

as 16% of electronics purchasers

who search before purchasing

are only using non-brand terms

for their searches.

Nearly half of the search terms used by electronics purchasers

are non-brand terms

Based on electronics related search terms conducted five minutes prior to electronics related visits to Amazon or brand sites.



53% 52%55%

47% 48%45%

Search terms of total purchasers Search terms of Amazon purchasers Search terms of brand site purchasers

Brand Non-brand

% of total search engine searches by purchasers

While electronics

purchasers who

purchase on brand

sites tend to more

frequently use brand

terms, still, nearly half

of the terms they use

are non-brand.

Non-brand terms

remain very important,

even for brand sites.

29%

52% 50%

41% 40% 40% 39% 37% 37% 36% 36% 36%31% 29% 26% 26%

To

tal

Revie

ws/

com

pari

sons

Siz

e (

e.g

., 30 m

l, 16 o

z,

etc

.)

Reta

iler

Ing

red

ients

(e.g

.,

sulfate

-fre

e, co

co

nut

oil,

natu

ral,

org

an

ic, etc

.)

Sto

re L

ocati

on

/wh

ere

to

buy

Su

perl

ati

ves

(e.g

., b

est

,

mo

st, sa

fest

, to

p, etc

.)

Desc

rip

tors

no

t a p

art

of

pro

du

ct n

am

e (

e.g

., fo

r

red

hair

, fo

r d

ry s

kin

,

that

wo

rks,

lo

ng

…

H&

B

Info

/Ad

vic

e/H

elp

/Tip

s/H

ow

To

H&

B –

gen

era

l, n

o

speci

fic

pro

du

ct typ

e

men

tio

ned

(e.g

., b

eau

ty

gift

set,

tre

atm

en

t, …

Pro

duct

Nam

e (

e.g

, o

gx

fad

e d

efy

ing

orc

hid

oil)

Sale

s/O

ffers

/Pro

mo

tio

ns

/Dis

coun

ts/C

ou

po

ns

Bra

nd

Pro

duct

Typ

e (

e.g

., fa

ce

cream

, h

air

care

, lip

balm

, lip

stic

k, sh

am

po

o,

sun

scre

en

, m

asc

ara

,…

Wh

o F

or

(e.g

., m

en

s,

wo

men

s)

Pri

ce/C

ost

(e.g

., ch

eap

,

22.9

9, etc

.)

$45.51 $47.87

$79.84

$48.88$45.20

$81.67

$43.53$48.16

$51.67 $50.71$55.85 $54.73

$49.36$45.17

$26.86

$41.91

Not all search terms are created equal

Online Health and Beauty Shopping Behavioral Analysis; Microsoft Advertising Market Intelligence, September 2019, J. Randolph.


High-conversion search terms include reviews/comparisons, size, retailer, ingredients and store

location. Terms for store location, size, product name, sales/offers, and info/advice tend to garner

higher shopper value.

HEALTH AND BEAUTY CATEGORY

Purchase conversion rate and average spend per purchaser

by search term type1 2 3 4

12

3 4

= Conversion rate %

= Avg $ spend per purchaser

5

5

Some types of search terms are much more valuable during the

holiday season

HEALTH AND BEAUTY CATEGORY

Changes in the average spend per purchase trip during the holiday

season compared to the full year*

$23.06

$19.17

$12.06

$9.46

$7.60

$6.25

$6.16

$5.31

$3.64

$3.56

$3.49

$3.24

$2.43

$0.00 $5.00 $10.00 $15.00 $20.00 $25.00

Size (e.g., 30 ml, 16 oz, etc.)

Price/cost (e.g., cheap, 22.99, etc.)

Sales/offers/promotions/discounts/coupons

Descriptors not a part of product name (e.g., for red hair, for dry skin,…

H&B – general, no specific product type mentioned

Superlatives (e.g., best, most, safest, top, etc.)

Brand

Ingredients (e.g., sulfate-free, coconut oil, natural, organic, etc.)

Product Type (e.g., face cream, lip balm, lipstick, shampoo, sunscreen,…

Retailer

Product name (e.g, ogx fade defying orchid oil)

Who for (e.g., mens, womens)

Reviews/comparisons Avg. total increase in holiday spend $6.20

NOTE: *Full year includes the holiday shopping period.



36%

% of purchasers

among group

Product detail

search terms (no brands)

Product detail + brand

search terms

34%

% of purchasers

among group

Brand only

search terms (no product detail)

$48.6

Average spend per

purchaser

$56.5

Average spend per

purchaser

$52.8

Average spend per

purchaser

Targeting product detail AND brand search terms can yield a

higher conversion rate



Product detail search terms without brands have a lower purchase value.

N=186 N=521 N=350 N=1019N=99 N=225

• Aveda

• bare minerals eyeshadow

• bobby brown lip stick

• Nyx makeup

• 4d silk fiber eyelash mascara

• color correcting makeup for

hyperpigmentation

• hypoallergenic make up for sensitive eyes

• Clinique clarifying lotion 1 dry skin pump

• Covergirl exact eye lights mascara

black ruby

• L'Oréal infallible amber rush looks

44%

% of purchasers

among group

Examples of search terms Examples of search termsExamples of search terms

Among purchasers, brand search terms yield a slightly higher

spend on average. Both brand and non-brand search terms have

comparable repeat purchaser rates.

Based on related search terms conducted 5 minutes prior to related visits to Amazon or brand sites.



Brand terms Non-brand terms Difference

Average spend

Health and beauty $86 $82 5%

Electronics $601 $554 8%

Apparel $114 $105 9%

Purchase rate

Health and beauty 61% 39% 22%

Electronics 53% 47% 6%

Apparel 46% 54% -8%

% of repeat purchasers

Health and beauty (H&B) 39% 37% 2%

Electronics 22% 22% 0%

Apparel 51% 51% 0%

Brand terms yield a slightly higher spend.

Both brand and non-brand search terms

have comparable repeat purchaser rates.

Brand terms yield a higher purchase rate

in H&B, and electronics but not in apparel.

For more than 40 years, Luth Research has been a leader in the market research industry by responding to our clients’

most critical business needs. Powered by our proprietary online research panel and cross-platform digital tracking

capabilities, our innovative research methods help today’s businesses thrive.

ZQ Intelligence is Luth Research’s patent-pending, cross-platform digital behavior measurement system. It combines

Luth Research’s research panel with proprietary web and mobile tracking technologies to correlate consumer actions and

attitudes. This innovative technology is the only and most comprehensive platform that has deep visibility into computer,

both iOS and Android mobile operating systems, both web and app data, and empowers our clients to passively track

digital behaviors and activities on a single-source basis. ZQ Intelligence owns and provides access to the industry’s

largest panel database of shopping behaviors and media behaviors going back over five years.

Contact us at 800.465.5884 or

[email protected] to

learn how to measure your

customers’ path to purchase.

Contact Microsoft Advertising.

ABOUT LUTH RESEARCH

ABOUT MICROSOFT ADVERTISING

Represent your brand at its best with advertising solutions guided by an uncompromising respect for privacy, brand safety,

and data security. Microsoft Advertising provides intelligent solutions that empower you to deliver engaging, personalized

experiences to over a half a billion people worldwide. Bing powers billions of searches monthly on the Microsoft Search

Network, including Verizon Media properties (AOL, Yahoo), platforms like Amazon and Apple, and on Microsoft services

like Windows, Office and Microsoft Edge. Extend your reach and campaign performance with Microsoft Audience Network,

high-quality native placements across devices on premium sites like MSN, Outlook.com, Microsoft Edge and select

publisher partner properties. Only Microsoft Advertising offers LinkedIn Profile targeting on search and native to help you

find highly relevant audiences based on their company, job function and industry. With Microsoft Advertising, gain access

to in-depth insights, intelligent advertising tools that use AI to improve campaign performance and audience targeting

solutions to create more personalized advertising experiences.

Microsoft Advertising. Intelligent connections.

https://luthresearch.com/

https://luthresearch.com/digital-measurement/technology/zq-intelligence/

mailto:[email protected]

https://about.ads.microsoft.com/resources/support/contact-sales

Microsoft Advertising Insights Consumer eCommerce …...N=746 N=175 Average apparel spend by brand...

Documents

Transcript of Microsoft Advertising Insights Consumer eCommerce …...N=746 N=175 Average apparel spend by brand...