Learn the latest retail tips and trends for 2015
Retail vertical insightsbing AustraliaLandscape, key trends and recommendations
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Top trendsCustomer expectationsOpportunities for SEM
PersonalFrom mass merchandise to personal merchandiseContext Analytics
SeamlessFrom the companys channel to my channelConsistent Device responsive
Differentiated
From standard to standout Innovation Competition
OverviewAustralian retail industry Australian retail onlineABS & Citi analysis Nielsen & Bing
Retail industry overview and trends
Areas for optimisation Page 2Bing SMB Advertisers Search Ads2/29/2016 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
Australian retail industry
Overview
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Australia Retail Sales MOM 2Change month over monthApr / 14Jul/ 14Oct / 14Jan / 15
FY 2014 saw Food and Household categories perform wellWhat is driving the growth?Weakening dollar makes domestic goods more attractiveCheap credit and lower fuel prices increase disposable incomeFeb 2015 saw the second solid month gain (5-6%)Retail spending growth for 12 months to December 2014 1Food retailShopping centresLarge format retailers
1. Craig Woolford, CFA | Senior Analyst; Retail Sector; Citi Research March 2015. 2. www.tradingeconomics.com | Australian Bureau of Statistics.Retail spending is up according to recent data from the ABS and CiTi
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Retail online
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How big is the online retail market?6.9%of total retail spending is now onlineor $16.6 billion Online retailers are actively reclaiming lost market share10%of non-food shopping in Australia is online (similar to the U.S.)Online sales growth is leveling off after a few years of 20-30%growth75%of total online sales are through domestic online retailers1Online retail search ads 21%10%vsdrive above average traffic4of cutting costs, retailers are now beginning to investAfteryears
1. NAB Online Retail sales Index Survey. 2: Hitwise Paid v Organic traffic Feb 2015 3: CiTi research Feb 2015Retail online
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Amain page views, sessions and audienceBrand retailers are in the second leader group the Nielsen Top 100 Retailers
3Clear leaders 8BignamesAmazon Coles Woolworths1. Nielsen trend Report March 2015 Retail Sector.Retail online: dominated by the top 3
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Ama
Retail online: international trends
50%-60%of Media, Hobbies and Electronics are forecast to be purchased online in 2020Media, Hobbies and Electronics
1. Nielsen trend Report March 2015 Retail Sector.
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Convenience
Gourmet
Clicks / week6233415683KeywordsGourmet pizzaHealthy snacksProtein shakesDark chocolateGrilled chicken
of the Australian urban population changed their lifestyle and search style in food and grocery in FY-14
33% 1. Bing Ads Intelligence Data March 2015.Food and grocery 2014: search trends
79% of Females search for Travel Insurance on a Smartphone
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44%of search terms were for Gardening
30%of search terms were for Home Furnishings
25%of search terms were for Home Appliances1. Bing Ads Intelligence Data March 2015.Home and garden 2014: search trends
79% of Females search for Travel Insurance on a Smartphone
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Personal
From mass merchandise to personal merchandise
The numbers do not add up to 100% as an individual can fall into more than one profile.
Planners
20%Plan their spending. Visit a wide variety of stores. Middle aged.
28%Most spending done very soon after paydayPaydayers
29%Always spend in the same shopping strips or shopping centresLocalists
24%Always shop with the same store brands or websitesLoyalists
21%Spend at the same time each weekClock watchers
22%Most spending done online rather than in a shopCyber spenders
10%of Australians have varied spending patterns, which are much more difficult to track. They spend at a wide variety of locations and stores, and at varied times. The rest
1. American Express Pattern Spending Report, conducted in February 2015, polling 1,993 Australian consumers.There is no typical retail customer
Source: American Express Pattern Spending Report, conducted in February 201 5, polling 1,993 Australian consumers.12
SeasonsApparel SeasonsSpring: Women AugSummer: Men NovBack to school: Mar
Jewellery: DecImpulse shoppersSalesEOFY salesNew Year salesBlack Friday 65% 25-54 age groupHighest traffic session
60% Rarely venture beyond 10 retail brands (Bricks & Mortar stores + Online Stores)~10% with 85% sticking to the same spending patternsMonth to focus
Age
Loyalty
1. Bing Ads Competitor Data 2014 Nielsen Landscape Report 2014.Retail: when and who are buying online
Double Check Data Piece13
Male Split between PC & TabletCool gadgets and things
FemalePredominantly tabletDiscount perfume, engraving and phone
Online: by retail generic keywords (age 25-34)1. Bing Ads Intelligence Age and Gender March 2015.
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FemalePredominantly tabletFashion, internet shopping sites & pens
Male Smartphone & tabletCool gadgets & cufflinks
Online: by retail generic keywords (age 35-49)1. Bing Ads Intelligence Age and Gender March 2015.
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How can Bing help?Retailers provide a more personalised customer experience.
Men and women tend to
Your account manager can help you optimise your campaignsUse different keyword searches and Use different devices when they searchEnhance your keyword search termsChange bids on higher performing keywordsTarget the appropriate deviceat the most appropriate time
SeamlessMeet consumer demand by seamlessly connecting the brick-and-mortar and online experience (often referred to as Omni-Channel)
Step123456789SocialSearchWeb Site VisitContact CentreIn Person Bricks & Mortar
Recommendation
IntentOrganic searchAD Content20% click on relevant paid retail search Ads 1Call centres$16.6 bn Purchased online 3 ~7% of all AU retail salesLocal stores33% Additional re-search in-store 2Share on social media
4 MUnique AU Bing Searchers 2
Click & Collect15-50% of online sales 4Purchase In Store93% of all retail sales 3
Share on social media
Australian retail customer journey1. Hitwise Paid v Organic traffic Feb 2015. 2. comScore qSearch Explicit Core Search, June 2014. / AU: Nielsen, September 2014. 3. Online Retail Sales Index: In depth report January 2015. 4. SMH march 2014; 'Click and collect' boost Australian online retailers.
16.6Bn18
Now Available: App Extensions Coming Soon: Product Ads
Call ExtensionsImprove the search experience
SitelinkExtensions
Enhanced Sitelinks
Location ExtensionsShorten the distance between intent and purchaseProviding a far more cost effective model for both CPC & CPA
Unified Device Targeting
How can Bing help retailers?Provide a more seamless customer experience.
83% of Home and Garden related searches are on a desktop
10% of Home and Garden related searches are on a smartphone
7% of Home and Garden related searches are on a tablet
Top keyword categories
gardeningliving room furniture major kitchen appliances
Home and garden1. Bing Ads Intelligence Data March 2015.
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89% of searches for Toys and Hobbies are on a desktop
8% of searches for Toys and Hobbies are on a smartphone
3% of searches for Toys and Hobbies are on a tablet
Toys and hobbies
1. Bing Ads Intelligence Data March 2015.
79% of Females search for Travel Insurance on a Smartphone
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81% of searches for Apparel and Accessories are on a desktop
11% of searches for Apparel and Accessories are on a smartphone
8% of searches for Apparel and Accessories are on a tablet
Apparel and accessories
1. Bing Ads Intelligence Data March 2015.
79% of Females search for Travel Insurance on a Smartphone
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DifferentiatedFrom standard to standout
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Occasionsare driving increased sales
Click & collectkeeps people in control
Data Driven innovation
New entrants
Some emerging trends
1. Bing Ads Intelligence Data March 2015.
79% of Females search for Travel Insurance on a Smartphone
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In clothing over the past 20 years:Per capita spending is up 77% ($695 to $1,231)Prices are up 2%Per capita volume is up 74%How much bigger is the wardrobe?
Clothing replacement cycle compression has driven over three-quarters of growthWhen retail increase the occasions to purchase we tend to buy more often
Craig Woolford, CFA | Citi ResearchSenior Analyst Retail SectorBest innovation opportunities in lifting frequency of occasion and enticing shoppers to trade up
Creating new occasions
Innovation needs to return to lift retail spendingWeaker retail innovation globally is stunting retail sales growth
1:: CiTi research Feb 2015
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Emerging new business model - click & collectWhere the store and the online presence work together to drive sales Click & collect keeps people in control.Humans when you need them. Technology when you don't.MYERAustralian traditional retailers have been investing greater funds in their omni-channel platforms in the past two years, seeking to make use of their physical stores (which were once seen as an impediment to online sales) as pick-up points for parcels bought online.
Click & collect Tipped to hit 50% penetration15% of online salesMyerDavid Jones WoolworthsColes 1. SMH; March 2014.
http://www.smh.com.au/business/click-and-collect-boost-australian-online-retailers-20140304-345df.html26
Everyday Rewards customer loyalty program
Use patterns of aggregated customer behaviour to improve offerings and services
1. http://www.adnews.com.au/news/woolies-and-quantium-to-launch-dsp-with-australian-first2. http://www.cmo.com.au/article/553618/quantium_helps_woolworths_get_personal_customers_ceo_says/Woolworths innovating with customer analytics
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Etsy briefly took the top spot in the middle of last year
1. Nielsen: Retail Data: Jan 2014 Feb 2015The market can be disrupted by online innovationHere we see reaction to a new entrant
1. The Guardian.The market can be disrupted by online innovationHere we see reaction to a new entrant
CompetitiveCPCSpendPosition
1. Bing Ads Intelligence Retail Competitors March 2015.Competitor analysis
1. The Global Innovation 1000: Top 20 R&D Spenders 2005-2014.
For Bing, the future of search is not about more search boxes its about building a platform that enables applications and devicesto empower people with knowledge and help them do more,not just search more.Bing Blog April 2nd 2015Cortana
Personal
Seamless
Differentiated
Top 3 trendsFrom mass merchandise to personal merchandiseFrom the companys channel to my channelFrom standard to standout Customer expectations
Context and content
From intent to purchase
Continued innovationHow can Bing help?
Conclusion
Thank you
2016 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.