Autos
marketplace:
Device-specific
trends and usage
during lockdown
May, 2020
Microsoft Advertising. Intelligent connections.
1 National emergency timeline (3)
2 Objectives (4-5)
3 Market overview (6-13)
4 Consumer journey (14-20)
5 KPI insights (21-26)
6 Search patterns (27-31)
7 Disaster recovery (32-43)
8 Appendix (46-49)
Navigating
devices
Analysis compares pre vs. post timeframes
“Pre” timeframe “Post” timeframe
Determined by the COVID-19 National Emergency (NE) Declaration date (March 13, 2020)
4-Jan 11-Jan 18-Jan 25-Jan 1-Feb 8-Feb 15-Feb 22-Feb 29-Feb 7-Mar 14-Mar 21-Mar 28-Mar 4-Apr 11-Apr 18-Apr 25-Apr 2-May 9-May 16-May 23-May
January February March April May
Have device usage and performance shifted as
auto shoppers acclimate to the new normal?
+3%Slight increase in handheld device share
-25%Overall decline in in-market cost-per-clicks (CPCs), driven by the
Partner Network on handheld
+69%Improvement in post-NE vs. pre-NE handheld query volume delta
(-4%) compared to prior year same period delta (-13%)
Macro state of the market year-to-date (YTD)
Automotive shoppers are actively searching
the Microsoft Network on their PCs
Source: ComScore qSearch (custom), U.S., December 2019; industry categories based on comScore classifications.
16MAutomotive PC searchers noton Google
46%Automotive PC Paid click share
The partner network drives the Automotive
space with 62% share of searches, 89%
attributed to Mobile + Tablet
Mobile PC Tablet Microsoft
Microsoft Internal Data, January-May 24, 2020.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
However, the search opportunity on Microsoft
is not limited to PCs. Handheld is critical to
Autos advertisers, generating 76% more query
volume for Autos than for the Total Market.
YTD search results page views (SRPV) share by Network & Device
Handheld
devices
account for
67% of all
partner
network
queries
PC
Handheld
Partner Network
10% 26% 52% 7% 3%2%
11% 50% 4% 12% 1%22%
Since the COVID-19 outbreak, Americans are spending
more time on devices: smartphones (45%), tablets
(22%), desktops (24%), and laptops (43%)
Source: GWI The Global Consumer Impact Wave IV – May, 2020
Although autos queries declined
Post-NE, trends followed (and
improved upon the prior year’s
-11% drop) historical Jan-May
seasonality
Microsoft Internal Data, January-May 24, 2020; January-May 25, 2019.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Driven by a slump in PC volume, Autos
queries fell -6% post-lockdown, while the
Total Market (TM) grew +14%
Automotive
Search volume trend YTD
Mobile PC Tablet
Total Market
Search volume trend YTD
LowHigh
-10%
-4%
Post-NE absolute SRPV delta I BY DEVICE
2019 Auto SRPVs
Attributed primarily to handheld, the
number of served ads on in-market
Autos queries dropped -5% post-NE.
Meanwhile, ad serving increased +2%
for the total market (TM).
Secure your positioning and
establish history by returning to
market while the search engine
results page (SERP) is less
saturated
Microsoft Internal Data, January-May 24, 2020; January-May 25, 2019.
Autos = in-market for new + CPO; Total Market = total universe of MSFT + Partner Network queries.
Competition wanes in the in-market Autos
space post-NE, effecting surging
efficiencies and an unprecedented return-
to-market opportunity
January February March April MayApril 20
Monthly CPC trends by device YTD
Total Market I PC TabletMobile HighLow
Automotive I PC TabletMobile HighLow
-4%
-6%
Post-NE density delta I BY DEVICE
January February March April MayMarch 15 March 30 April 20April 20
Driven by the Partner Network, CPCs
for Autos declined by -25% and by
-17% for TM, contributing to overall
platform efficiencies (and widening
the return on investment (ROI) gap
between Microsoft and its SEM
competitors).
Microsoft Internal Data, January-May 24, 2020; January-May 25, 2019.
Autos = in-market for new + CPO; Total Market = total universe of MSFT + Partner Network queries.
Efficiency gains in the Partner Network
enabled advertisers in the in-market Autos
space (and across TM) to achieve more
visits for a much lower cost
Partner Network CPCs by device YTD
Total Market I PC TabletMobile HighLow
Automotive I PC TabletMobile HighLow
-14%
-23%
-17%
-37%
Autos vs TM post-NE CPC delta I BY NETWORK
-3%
4%
Device usage share for the Total
Market also saw minimal yet similar
movement post-NE
*When removing the Partner
Network, TM device share remained
relatively flat (-2% drop in
handheld; +0.5% in PC)
Microsoft Internal Data, January-May 24, 2020.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Device usage patterns shifted slightly post-
NE: Autos share on handheld devices
increased 3% while PC decreased -5%.
Autos device share growth post-NE
-6%
-4%
-2%
0%
2%
4%
6%
PC Tablet Mobile
TM post-NE search results page views (SRPV) share
delta I BY DEVICE
Consumer journey
With the limited real estate on handheld devices,
customizing ad messaging to speak to your
customers’ needs throughout their shopping journey
is imperative
Although auto shoppers began
their journeys on handheld devices
10% more frequently post-NE than
pre-NE, PCs continued to be the
most prevalent starting point in the
auto journey with 84% device share
Journeys compared: start date Pre-NE vs start date Post-NE.
Microsoft Internal Data, January-March, 2020. Query paths include 2+ touchpoints.
MSFT Owned & Operated, All Devices.
Automotive journeys starting on mobile
jumped 68% following the lockdown
announcement
Auto
journeys
analyzed
crossed 23
Makes and
10 3rd
Parties
-2%
10%
-2%
-19%
68%
-40%
-20%
0%
20%
40%
60%
80%
Device share of first searches growth post-NE
PC Tablet Mobile
Post-NE first search share delta I BY DEVICE
-3%
14%
Auto shoppers who began their search
paths post-NE were 14% more likely to
end on handheld devices than when
starting their journey pre-NE
Journeys compared: start date Pre-NE vs start date Post-NE.
Microsoft Internal Data, January-March, 2020. Query paths include 2+ touchpoints.
MSFT Owned & Operated, All Devices.
Automotive journeys starting after
lockdown saw a 36% increase in mobile
share of path endpoints
Device share of last searches growth post-NE
-3%
-9%
36%
-20%
0%
20%
40%
1
PC Tablet Mobile
Post-NE last search share delta I BY DEVICE
With only four ad placements on a
mobile device, stacking ads allows
OEMs to own the SERP
Enable all tiers to serve
simultaneously and capture
shoppers at every stage in the
purchase funnel, increasing share
of SERP
Journeys compared: start date Pre-NE vs start date Post-NE.
Microsoft Internal Data, January-March, 2020. Query paths include 2+ clicked touchpoints.
MSFT Owned & Operated, All Devices.
Original Equipment Manufacturer (OEM) visits
double when stacking 2+ ads. Multi-serving
is increasingly effective post-NE, generating a
14% higher response.
Stacking ads (2+ vs. 1) OEM page click-through rate (CTR) increase by device
0%
20%
40%
60%
80%
100%
120%
140%
160%
Pre-NE Post-NE % Delta Post vs. Pre
1 Ad
2 Ads
3+ Ads
Post-NE mobile OEM page CTR I BY ADS SERVED
92% more
effective than
serving 1 ad
62-78% of Americans approve of brands advertising in
response to COVID-19, running promotions / loyalty
perks and offering flexible payment terms
Source: GWI The Global Consumer Impact Wave IV – May, 2020
Handheld device share of organic
automotive clicks dropped -12%
With the mobile screen size
limitations, the implications of the
inability to update search engine
optimization (SEO) in real-time were
more pronounced than on PC
Leverage responsive search ads
to ensure the right message
reaches your customersJourneys compared: start date Pre-NE vs start date Post-NE.
Microsoft Internal Data, January-March, 2020. Query paths include 2+ touchpoints.
MSFT Owned & Operated, All Devices.
Handheld users are clicking on paid
automotive results 20% more frequently
while in quarantine, finding comfort in
automakers’ relief ad messaging
Paid / Organic click share growth on handheld devices post-NE
-28%
20%
-40%
-20%
0%
20%
40%
Organic Paid
2%
-12%
Post-NE organic click share I BY DEVICE
Key performance indicator (KPI) trends
January February March April May
Although overall volume declined
along with the Autos marketplace,
dealer share of the Autos queries
remained relatively flat following
stay-at-home mandates across all
devices
Microsoft Internal Data, January-May 24, 2020.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Aside from a slight dip in April as users
adapted to modified shopping tactics,
dealer queries primarily sustained its share
of mind
Dealer query volume by device vs. all Autos
In April,
Mobile
Dealer
SRPVs fell
-22%
MoM and
-18% YTD.
3%
0%
Autos (All Devices)PC Tablet Mobile
Post-NE dealer query share delta I BY DEVICE
SRPV = search results page view
MoM = Month over month
YTD = year to date
Microsoft Internal Data, January-May 24, 2020.
Size of text indicates frequency.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
https://www.usatoday.com/story/money/cars/2020/05/28/coronavirus-car-buying-pandemic-home-deliveries-online-sales/5274230002/
https://www.cnbc.com/2020/05/21/the-coronavirus-pandemic-has-upended-auto-sales-and-buying-a-car-will-never-be-the-same.html
Automotive shoppers searched not only to
buy, but to understand how and when to
purchase
Frequency of tokens in emerging dealer queries across all devices post-NEHome deliveries have shot up
from less than 5% of new-vehicle
sales to nearly a quarter of all
sales
Add relevant keywords and
customize copy to address
interest in alternative shopping
options
Microsoft Internal Data, January-May 24, 2020.
Size of text indicates volume.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Question queries are prevalent in emerging
dealer queries
Top emerging dealer queries across all devices post-NE
64%
36%
Anomalous to the autos marketplace,
emerging dealer queries (many of
which focused on home deliveries)
were searched more frequently on
[home] PCs than handheld devices
Remarket to these shoppers with
updates about dealership
openings and delivery offerings
Post-NE emerging dealer query share I BY DEVICE
January February March April May
Despite post-NE incentive SRPVs
declining -5%, incentive share of IMNV
queries rose 9% driven by PC’s 16% jump
Incentive share of IMNV queries on
handheld devices is currently 23.4%
Respond to both new vehicle and
incentive queries with special offers
and timely promos in your ad copy
Microsoft Internal Data, January-May 24, 2020.
*IMNV: new or undefined (ie not CPO / used)
Incentive queries for in-market-for-new
vehicles* (IMNV) drove the Autos
marketplace up in March with OEMs
pushing their relief efforts broadly
IMNV query volume by device vs. Autos*
16%
7%
Post-NE incentive share delta I BY DEVICE > HANDHELD
Autos (All Devices)PC Tablet Mobile
January February March April May
The decline in fuel economy is seen
primarily on PCs and Microsoft
Owned & Operated properties
Target UV and Truck shoppers
searching on home computers
with alt fuel vehicle options in
the same segments
Audience target consumers
interested in sustainability
Microsoft Internal Data, January-May 24, 2020.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Interest in fuel-efficient vehicles dropped -11%
post-NE as the U.S. Corporate Average Fuel
Economy (CAFE) standards relaxed
Fuel Economy absolute SRPVs by device vs. all Autos
Autos (All Devices)PC Tablet Mobile
Post-NE fuel economy query share delta I BY DEVICE
-11%
-1%
Search patterns
-15%
-10%
-5%
0%
5%
10%
15%
Medium to long (3+ words)
automotive query share grew 5%
across all devices post-lockdown
Leverage search term reports
to identify longer tail
keywords additions
Microsoft Internal Data, January-May 24, 2020.
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
With more time to search, automotive
queries grew in length, primarily on tablets
Query length share growth patterns post-NE by device
Short Medium / Long
5%
4%
Post-NE 3+ word share delta I BY DEVICE
57% more males than females say they will prioritize
purchasing cars / vehicles after COVID-19
(% who say they will prioritize making these large purchases first)
Source: GWI The Global Consumer Impact Wave IV – May, 2020
-15%
-10%
-5%
0%
5%
10%
Microsoft Internal Data, January-May 24, 2020.
*Only logged-in users are identified by gender (~50% of O&O; 1% of Syndication).
**https://www.kff.org/coronavirus-covid-19/issue-brief/kff-health-tracking-poll-late-april-2020/
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Likely attributed to a blend of decreased necessity
and dwindling disposable time, post-NE share of
females searching for autos declined across all
devices, with mobile usage falling -14%
Autos search share by gender* post-NE
Female Male
Female Male
March 15 March 30 April 20
% More Females
In surveys** conducted post-NE, share
of Americans who say their lives have
been disrupted by the coronavirus
outbreak has increased, with females
consistently feeling more impacted
than males (11% greater in aggregate)
Leverage audience targeting to
customize messaging to each
demographic
Apart from Tesla, all makes seeing a
statistically significant drop in female
interest share are imports
Remarket imports to re-engage
with women and to retain male
shoppers
Microsoft Internal Data, January-May 24, 2020.
*Only logged-in users are identified by gender (~50% of O&O; 1% of Syndication).
Autos = in-market for new + CPO and aftermarket; Total Market = total universe of MSFT + Partner Network queries.
Shifting interest from imports post-NE,
females prefer domestic brands across all
devices
Post-NE female SRPV share delta by rising make
-11%
-11%
-10%
-8%
-6%
-6%
-5%
-5%
-4%
Nissan
Volkswagen
Honda
Hyundai
Tesla
Toyota
Kia
BMW
Subaru
GMC7%
Dodge8%
Jeep10%
Chevrolet11%
Ford12%
GMCDodgeJeepChevroletFord
Post-NE female SRPV share delta I BY DECLINING MAKE
In-market vehicles: disaster recovery guide
DISASTER RECOVERY: Performance expectations and recommendations to operate in a pandemic
Analysis compares immediate pre vs. post timeframes
“Pre” timeframe “Post” timeframe
Determined by the COVID-19 National Emergency (NE) Declaration date (March 13, 2020)
25-Jan 1-Feb 8-Feb 15-Feb 22-Feb 29-Feb 7-Mar 14-Mar 21-Mar 28-Mar 4-Apr 11-Apr 18-Apr 25-Apr
Jan. February March April
The following sections analyze the
immediate 7-week impact post-NE and
offer guidance on how to most
effectively manage your business
In-market vehicles by model year
Post-NE, overall searches for new vehicles peaked
in weeks 11 to 13, largely due to strong purchase
incentives. Since then, new vehicles searches have
been declining on all three device types.
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 10
Since the NE, the top rising branded
searches for new vehicles were for UVs
on mobile, followed by cars on mobile,
UVs on PC, and trucks on mobile
Nati
on
al Em
erg
en
cy
Shift budgets to support new
UVs and cars on mobile, and to
cover UVs on PCPC Tablet Mobile
Branded searches for new vehicles
Rising branded models by searches for new vehicles
Searches for new vehicles by device type post-NE (includes
brand & non-brand)
Since the NE was declared, overall searches
for used vehicles have decreased by -20% on
PC, -4% on tablet, and -3% for mobile
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 10
Since the NE, the top rising branded
searches for used vehicles were for
trucks on mobile
Consider prioritizing keyword
budget for used trucks on
mobile, followed by cars and
UVsPC Tablet Mobile
Branded searches for used vehicles
Rising branded models by searches for used vehicles
Searches for used vehicles by device type post-NE
(includes brand & non-brand)
In-market vehicles by segment
Truck searches on mobile have increased +6% while
cars and UVs saw minimal movement at +1% and
-3% respectivelyCPCs across all defined segments dropped -36%, driven by the Partner
Network’s (-41%) decline
Although mobile searches for UVs
are down post-NE, five of the top
ten rising models are UVs
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 10
Car Truck UV
Top 10 rising models by searches I MOBILE
Prioritize trucks and cars /
UVs with gains while
efficiencies in the market are
optimal
Branded mobile searches
Mobile searches by vehicle segment post-NE
(includes Brand & Non-Brand)
Since NE was declared, PC searches for cars and UVs
have decreased by -13% and -12% respectively but
increased for trucks by 11%. Truck lift is likely
attributed to incentive benefits / personal use needs1.CPCs across all defined segments dropped -16%, driven by O&O’s $0.30 (-
16%) decline.
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 101 https://www.comscore.com/Insights/Press-Releases/2020/3/The-Impact-of-COVID-19-on-the-Auto-Industry
Despite declines in car and UV
queries on PCs, cars and UVs
represent nine of the top ten
rising models.
Top 10 rising models by searches I PC
Promote rising models and
trucks to target the most
captive audience on PCs while
the market is extremely
efficient.Car Truck UV
Branded PC searches
PC searches by vehicle segment post-NE
(includes brand & non-brand)
Post-NE, segment queries on tablets peaked
during weeks 11 to 13 and subsequently fell,
continuing to decline through April
Driven by the Partner Network, CPCs across all defined segments
dropped -24%
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 10
UV models account for 40% of
rising models on tablets, while
cars and trucks are both 30% of
growth by searchesN
ati
on
al Em
erg
en
cy
Consider a relatively even
split on keyword budget
between cars, trucks and UV
for tablets
Top 10 rising models by searches I TABLET
Car Truck UV
Branded tablet searches
Tablet searches by vehicle segment post-NE
(includes brand & non-brand)
In-market vehicles by class
Overall economy vehicle searches have
decreased by -7% on PC, -1% on tablet,
and –7% on mobile post-NE
Microsoft Internal Data, January - April 30, 2020
Post-NE period of Weeks 11 to 17 compared to Weeks 4 to 10
Although overall economy searches are
declining post-NE, several vehicles have seen
statistically significant search increases:
• Toyota Tacoma (Truck)
• Volkswagen Passat (Car)
• Subaru Outback (UV)
• Toyota Highlander (UV)
• Volkswagen Atlas (UV)
• Chevrolet Silverado (Truck)
• Ford F-150 (Truck)
• Chevrolet Sonic (Car)
• Buick Enclave (UV)
• GMC Sierra (Truck)
• Chevrolet Silverado (Truck)
• GMC Sierra (Truck)
• Volkswagen Beetle (Car)
• Volkswagen Tiguan (UV)
• Toyota Tundra (Truck)
*Bold indicates statistically significant
growth (greater than one standard
deviation)
PC Tablet Mobile
Branded economy vehicle searches
Economy vehicle searches by device type post-NE
(includes brand & non-brand)
After peaking in week 13 due to strong purchase
incentives, luxury vehicle searches have declined
for all three device types, potentially driven by
rising unemployment1 and economic uncertainty2
Microsoft Internal Data, January - April 30, 2020
1 https://fred.stlouisfed.org/series/ICSA
2 https://fred.stlouisfed.org/series/USEPUINDXD/
• Volvo XC60 (UV)
• Acura MDX (UV)
• Cadillac CT5 (Car)
• Volvo XC90 (UV)
• Audi R8 (Car)
• Volvo XC40 (UV)
• Volvo XC60 (UV)
• Audi RS (Car)
• Audi E-Tron (UV)
• Cadillac XT6 (Car)
• Volvo XC40 (UV)
• Volvo XC60 (UV)
• Audi RS (Car)
• Infiniti QX60 (UV)
• Acura RDX (UV)
Although overall luxury searches are declining,
several models have seen statistically
significant search increases post-NE:
*Bold indicates statistically significant
growth (greater than one standard
deviation)
Nati
on
al Em
erg
en
cy
PC Tablet Mobile
Branded luxury vehicle searches
Luxury vehicle searches by device type post-NE
(includes brand & non-brand)
Strategies and recommendations
Learn immediate and recovery-phase strategies, and how to approach new
opportunities and optimize account health in the Digital Advertiser’s Guide to
COVID-19
Thank you!
advertising.microsoft.com
Appendix
“Home shopping enables control over the purchase
process as well as stronger knowledge about prices
and deals.”
Source: https://www.usatoday.com/story/money/cars/2020/05/28/coronavirus-car-buying-pandemic-home-deliveries-online-sales/5274230002/
“A byproduct of the shutdown is that more dealers are
embracing digital tools to enable sales without having
to show up in person.”
Source: https://www.kbb.com/articles/car-news/coronavirus-COVID-19-car-buying-advice-deals/
“The Trump administration’s rollback of mileage
standards marks a win for Americans who like their
SUVs and pickup trucks.”
Source: https://nypost.com/2020/04/01/trump-rollback-of-mileage-standards-guts-climate-change-push/