Prepare for the new UK vehicle registration plate launchFebruary 2016

Microsoft’s cross-over reach with internet users on Automotive sites

Microsoft has a strong cross over with consumers in the Automotive category in the UK

Source : comScore Segment Metrix January 2016. Automotive 18+ NB: Bing numbers form a part of overall Microsoft numbers which also include other major properties such as MSN, Microsoft.com

All Automotiv

e

43%

80% 82%

41%

81%

42%

Percentage reach of total unique visitors in the Automotive category

Manufacturers

Automotive

Resources

Percentage reach of total unique visitors in the Automotive category

Source: GWI Q3 2015. Base: UK internet average. * TGI GB 2015 Q3. Base: Use internet within the last month

UK Internet average base (indexed)

116102

Purchased a vehicle within

the last 6 months

Bing searchers have a high purchase intent for new cars

Intending to buy a vehicle within the

next 6 months

Avg. willing to spend on next car

purchase*

145

100 £10,

809

£9,6

56

Methodology• UK Market• Top 20,200 Auto search queries based on

volume• Analysis period: Jan 2015– Apr 2015

(inclusive)

Objectives• Identify search behaviours last year• What does the Bing searcher look like?• What are their behaviours?• Advertiser opportunities

Query SegmentationHow we defined our query categories

Segmentation DefinitionLuxury OEM Search query contains either a manufacturer or model belonging to

a Luxury OEM. Includes dealership, repair services, used cars etcNon-Luxury OEM Search query contains either a manufacturer or model belonging to

a Non-Luxury OEM. Includes dealership, repair services, used cars etc

Other Auto More general auto terms. Independent dealerships, servicing, repair & third-party seller sites

New / Used Search query contains either the term ‘New,’ ‘2015,’ ‘2016’ or ‘Used’

Finance / Lease Search query contains either the term ‘Finance’ or ‘Lease’ inc. ‘Business Lease’

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

New

All Up Auto

Luxury OEM

Non-Luxury OEM

Used

2015Annual search query peaks for Autos sub-verticals on Bing Ads in the UK

Source: Internal - Volume of searches indexed to average monthly volume in 2015 on Bing & Yahoo sites in the UK, all devices.   

Mal

eFe

mal

e

Lease

Non-Luxury OEM

NewOther Auto

Finance

Bing Auto vertical average

55 years old

35 years old

The average Auto searcher is a 47 year old male. Luxury OEM searches have a slightly younger skew, although still in the favour of men. Queries containing the term Finance tend to be searched for by a much younger audience and are less gender-specific.

Source: Internal based on top auto search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015, Bubble size = volume.

50:50 Male to Female

70:30 Male to Female

UsedLuxury OEM

What does the average Auto searcher look like on Bing Ads?

Older40:60 Male to Female

Average Auto searcher on Bing

65% Male, aged 47 yearsBing Auto vertical average

Don’t Forge

t

The role of devices• Mobile & Tablet account for 40% of auto searches on the Bing Network• Searches containing the term ‘new’ have a slight skew towards Mobile, whilst the opposite is true for terms containing

‘Used’• Interestingly, nearly a third of searches related to Auto financing occur on the mobile device – the most of any category

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015. Numbers may not sum to 100% due to rounding

All Luxury OEM Non-Luxury OEM

Other New Used Branded Generic Lease Finance

Category Purchase type Query type Financing type

23% 24% 24% 22% 21% 18% 23% 23% 18%31%

17% 18% 17% 18% 18% 21%18% 17%

17%

11%

60% 58% 59% 61% 60% 62% 59% 60% 65%58%

% Volume by Device

Mobile Tablet PC

£0.26

£0.25

£0.21

100%

142%

173%

Average Autos CPCs

Average Auto CPC by device, UK Bing & Yahoo Sites, Jan 2016

Autos CTRs vs. desktop

Average CTR for top queries in Auto, indexed to desktop, UK Bing & Yahoo Sites, Jan 2016

How do Autos KPIs on Bing Ads compare between devices?

Internal Microsoft Data, 2015

Don’t Forge

t

OEM searches over the period

CES

1/1/2015

1/4/2015

1/7/2015

1/10/2015

1/13/2015

1/16/2015

1/19/2015

1/22/2015

1/25/2015

1/28/2015

1/31/2015

2/3/2015

2/6/2015

2/9/2015

2/12/2015

2/15/2015

2/18/2015

2/21/2015

2/24/2015

2/27/2015

3/2/2015

3/5/2015

3/8/2015

3/11/2015

3/14/2015

3/17/2015

3/20/2015

3/23/2015

3/26/2015

3/29/2015

4/1/2015

4/4/2015

4/7/2015

4/10/2015

4/13/2015

4/16/2015

4/19/2015

4/22/2015

4/25/2015

4/28/201560%

70%

80%

90%

100%

110%

120%

130%

140%

Luxury Non-Luxury

Daily

Inde

xed

volu

me.

Bas

e =

100

North American

Motor Show

(Detroit)

Geneva

Motor Show

Plates Launch

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015. Based on brand term only

1

2

3

1 Manufacturer searches first over-index during the North American Motor show. The initial interest comes from Luxury vehicles, which coincided with the announcement of several Luxury OEM vehicles during the show

2 Consumer interest intensifies two weeks before the plates launch, initially from Luxury manufactures, and later from the Non-Luxury manufacturers3 Cars are not front-of-mind for consumers during the Easter break, but interest rises for Luxury manufacturers from mid April, coinciding with the summer weather

..The average Luxury OEM searcher is 2 years younger than Non-Luxury OEM searcher

Who’s in the market?

Gender

When are they searching?

69%

31%

63%

37%

Non-Luxury OEM

Luxury OEM

Although both categories skew towards men, Luxury vehicles tend to be searched for by a slightly younger

audience than Non-Luxury manufacturers

Traffic is flat over the week, but with small spikes on Monday’s & Thursday’s for both

categories

Monda

y

Tuesd

ay

Wedne

sday

Thurs

day

Frida

y

Satur

day

Sund

ay0%2%4%6%8%

10%12%14%16%

Non-Luxury Luxury

% o

f wee

kday

traffi

cInternal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015. Based on brand term only

18-24 25-34 35-49 50-64 65+0%

10%

20%

30%

40%30% 32%35%

28%

Non-Luxury Luxury

% T

raffi

c by

de

mog

raph

ic

FemalesMales

How well will my ads perform?

The CTR on Luxury OEM terms is higher than Non-Luxury OEM throughout the period, and also marginally cheaper. The CPC for both categories peaks

in March coinciding with the new plates launch & Geneva Motor Show

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015. Data based on performance of brand term ads in Mainline positions 1 to 4

January February March April0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

£-

£0.05

£0.10

£0.15

£0.20

£0.25

Luxury OEM

CTR CPC

January February March April0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

£-

£0.05

£0.10

£0.15

£0.20

£0.25

Non-Luxury OEM

CTR CPC

Don’t Forge

t

New car searches are popular until mid March, after which used cars gain popularity

CES North American

Motor Show

(Detroit)

Geneva

Motor Show

Plates Launch

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015

1/1/2015

1/4/2015

1/7/2015

1/10/2015

1/13/2015

1/16/2015

1/19/2015

1/22/2015

1/25/2015

1/28/2015

1/31/2015

2/3/2015

2/6/2015

2/9/2015

2/12/2015

2/15/2015

2/18/2015

2/21/2015

2/24/2015

2/27/2015

3/2/2015

3/5/2015

3/8/2015

3/11/2015

3/14/2015

3/17/2015

3/20/2015

3/23/2015

3/26/2015

3/29/2015

4/1/2015

4/4/2015

4/7/2015

4/10/2015

4/13/2015

4/16/2015

4/19/2015

4/22/2015

4/25/2015

4/28/201560%

80%

100%

120%

140%

160%

180%

200%

New Used

Daily

Inde

xed

Volu

me

(Bas

e =

100)

1

2

3

1 Initially, used cars are more popular than new cars at the start of the New Year. Interest in new cars rises coincides with the opening day of the North American Motor Show, where search volume hits 130%

2 On 15th February new car searches peak at 178%. Queries containing the term ‘new car deals’ account for the surge, indicating that price is still front-of-mind in the consideration journey

3 Used cars are back on the minds of consumers by mid March, although the indexed volume is often lower than the base (100) for the remainder of the period

Monda

y

Tuesd

ay

Wedne

sday

Thurs

day

Frida

y

Satur

day

Sund

ay0%

4%

8%

12%

16%

New Used

% o

f wee

kday

traffi

c

..Who’s searching for new vs used cars and when are they searching?

Who’s in the market?

Gender

When are they searching?

67%

33%

66%

34%

New Used

New and used vehicles are searched by similar split of men & women. However used cars searchers tend to be

slightly older indicating that the status of an expensive car is preferred by younger people.

Thursday is the most popular day for new car searches, meanwhile used car searches are

more flat throughout the week, favouring no day in particular

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015

FemalesMales

18-24 25-34 35-49 50-64 65+0%

10%

20%

30%

40%

31%34%34% 34%

New Used

% T

raffi

c by

de

mog

raph

ic

How well will my ads perform?

The CTR for new car terms remains between 11-12% over the period, meanwhile used car terms have a slightly higher CTR range (13-15%). The

cheaper CPC on New terms is attributed to the fact that majority of terms in this category also contain brand terms e.g. ‘new Audi’

January February March April0%

2%

4%

6%

8%

10%

12%

14%

£0.30

£0.32

£0.34

£0.36

£0.38

£0.40

£0.42

New

CTR CPC

Clic

k Th

roug

h Ra

te

Cost

per

Clic

k

January February March April0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

£0.40

£0.42

£0.44

£0.46

£0.48

£0.50

£0.52

£0.54

£0.56

Used

CTR CPC

Clic

k Th

roug

h Ra

te

Cost

per

Clic

k

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK, Jan-Apr 2015. Data based on performance of ads in Mainline positions 1 to 4

Brand & Endorsements CTA Delivery Incentives

Token Ad Quality Token Ad Quality Token Ad Quality™ º collect � same day delivery �official � shop � home delivery �Brand Term � get � next day delivery �recommended º buy � free p&p º® º view � free delivery �as seen on tv � compare º free returns ºnumber 1 � call º free shipping �© � find �        enquire �        see º        check º               

How to read an ad copy heat map

� Strong impact, rarely usedº Strong impact, sometimes used

� Strong impact, but used often� Fair impact, rarely usedº Fair impact, sometimes used� Fair impact, but used often� Limited impact, but rarely usedº Limited impact, but sometimes

used� Limited impact, but used often

Individual Tokens

Ad quality explanations

Top Tip: The greener and fuller the circle, the more likely your ad will stand out

How well tokens impact your ad

quality

How many other

advertisers are actively using

the token

We’ve looked at two dimensions in Bing Ads:1 2

. .

Luxury OEM searchesAd Copy Analysis

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK for Luxury OEM ads, Jan-Apr 2015

Brand Endorsements CTA

Dynamic Inclusion and

Special Symbols

Pricing and value perception

driversUser Needs USP

Token Ad Quality Token Ad Quality Token Ad Quality Token Ad Quality Token Ad

Quality Token Ad Quality

As seen on TV � Dealership � {para

m2: � Low cost � Locate � Full Range �

Right �Request a brochure

� {keyword: º Savings º Compare � Find used �

Official � Visit º ? º Bargain º Lease º Find new ºBrand � Book � & � Finance

Offers º Certified º Find �™ º Dealer º ! � Save � New � Our range ºUnbeatable º Now � + � Offer �     Cheap �

Leader º Call today �     Affordable �        

Top � Call �     Variable �                    Low prices º        Recommended �         Free �        

Award Winning º         Cheap �        

            Deal �                    Interest �                    Reductions �                    Great price �                    Extra º                    Discount �        

Non-Luxury OEM searchesAd Copy Analysis

Internal Source: Based on top search queries on Bing & Yahoo sites in the UK for Non-Luxury OEM ads, Jan-Apr 2015

Brand Endorsements CTA

Dynamic Inclusion and

Special Symbols

Pricing and value perception

driversUser Needs USP

Token Ad Quality Token Ad

Quality Token Ad Quality Token Ad Quality Token Ad Quality Token Ad Quality

Leader � Dealership � {para

m2: � Finance Offers � New � Full Range º

Unbeatable º Visit º + � Bargain º Compare � Our range �

Top � Book � & � Low prices º Locate � Find �Official � Dealer º ? º Savings � Lease º Find used º

Award Winning � Request a

brochure � ! º Save �     Find new �

As seen on TV � Now � {para

m1: � Cheap �     Cheap �

™ º Call today � {keyword: � Affordable �        

Right � Call �     Interest �        Brand �         Low cost º        Voted Best �         Deal �        

Recommended �         Free �        

        Offer �                    Variable �                    Reduction

s �        

            Great price �        

            Extra º                    Discount º                               

Internal Source: Comparison of average mainline CTR for Autos, UK Bing & Yahoo sites, PC & Tablet (Jan 2016)

Combined ExtensionsFor Auto campaigns, Enhanced Sitelinks + Location + Call

Extension yields the highest CTR

Location Extension

Call Extension

Sitelinks

Enhanced Sitelinks

Enhanced Sitelinks + Location + Call Extension

7%

8%

10%

20%

25%

Summary

Consider your device strategy depending on the type of campaign. Mobile accounts for

almost a quarter of all searches, even higher for Financing queries

Remember to raise campaign budgets for February & March to

account for the increased seasonal

demand

Use the ad copy heat maps to help

differentiate your ads against the competition

Adopt extensions to increase your

presence on the mainline

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