Search is more important than ever (EMEA)

What’s inForecast and status quo

What’s thereBenefits of Search

What could bePost-pandemic perspectives

What’s inForecast and actuals

Search is the least affected media channel

Moderate Severe Moderate Severe Moderate SevereFrance Germany United Kingdom

Search Ad -7.8 -14.9 -8.2 -17.8 -6 -13Display Ad -11.2 -20 -12.2 -23.5 -8.5 -15.6TV Ad -14.7 -23.1 -12.4 -21 -22.5 -30.5OOH Ad -20 -27.2 -17.9 -24.3 -31 -43

-50-40-30-20-10

0

H1 forecast models(% change vs. the prior period)

Search Ad Display Ad TV Ad OOH Ad

Sources:eMarketer: HOW THE CORONAVIRUS WILL CHANGE OUR UK AD SPENDING FORECAST; April 2020eMarketer: HOW THE CORONAVIRUS WILL CHANGE OUR GERMANY AD SPENDING FORECAST; April 2020eMarketer: HOW THE CORONAVIRUS WILL CHANGE OUR FRANCE AD SPENDING FORECAST; April 2020

Search Ads remain a safe option for many advertisers

Paid Search: “A steady ship in stormy waters”

Paid Search has been the least impacted media

In many cases budgets have been shifted from other media to search

47%

13%

45%

19%

43%

14%

41%

7%

24% 24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Types of Media Paused, Cancelled or Pulled Budget From Types of Media Retaining Budgets or ReceivingBeneficiaries

Display Social media (paid) Digital Video Linear TV (Broadcast) Search (paid)

Sources: Advertiser Perceptions: Coronavirus Effect on Advertising Report; Survey fielded March 17 – 20, 2020SAMPLE: Marketer and agency contacts from The Advertiser Perceptions Ad Pros proprietary community

Consumers are looking for alternatives

As physical stores closed, search volume increased

80%

90%

100%

110%

120%

130%

140%

Jan 04 Jan 11 Jan 18 Jan 25 Feb 01 Feb 08 Feb 15 Feb 22 Feb 29 Mar 7 Mar 14Mar 21Mar 28Apr 04 Apr 11 Apr 18 Apr 25 May 2

Indexed search volume

France Germany United Kingdom

Linear (France) Linear (Germany) Linear (United Kingdom)

Lockdowns and restrictions

Source: Microsoft Advertising internal data; Indexed search volume with first week = 100; January 5 to May 8, 2020

Impact of COVID-19 by verticals

Vertical trends during pandemic show Internet and Telecom verticals leading the way

Source: Microsoft Advertising internal data; Indexed search volume with first week = 100; January 5 to May 8, 2020

0%

20%

40%

60%

80%

100%

120%

140%

Jan 04 Jan 11 Jan 18 Jan 25 Feb 01 Feb 08 Feb 15 Feb 22 Feb 29 Mar 7 Mar 14Mar 21Mar 28Apr 04 Apr 11 Apr 18 Apr 25 May 2

Indexed paid clicks by vertical(DE, FR, UK aggregated)

Apparel Computers & Consumer Electronics Finance

Internet & Telecom Travel & Tourism Vehicles

Lockdowns and restrictions

Source: Microsoft Advertising internal data; search volume year over year; Feb -May, 2019/2020

Computer & Consumer Electronics

Internet & Telecom

Apparel

Finance

Travel

Automotive

Impact of COVID-19 by vertical

What’s thereBenefits of Search

Search offers safe space for ads

Adaptability"When times are good, you should advertise. When times are bad, you must advertise"

Massive reach you can trustYour brand promoted at its best on high-quality native placements and brand-safe properties

Source: comScore, Microsoft Audience Platform Report, August 2019, U.S. desktop. MSN Content Sites, Live.com, Outlook Web. Numbers are rounded to the nearest percentage pointPartner publisher reach is based on expected partner participation in the network as of October 2019..

200M+U.S. monthly unique visitors

Outlook.com Publisher Partners

Microsoft Edge

Strict editorial content reviews

Rigorous partner onboarding process and management

AI-powered content reviews

Transparency and user controls

Control over supply allows maximum agility

Unique flexibility and control to respond immediately to consumer behaviour

Searches for Mundschutz (face masks) in Germany between March - April

+20.000 % searches year-over-year (YoY)

(1) Microsoft Advertising internal data; March 1 to Apr 27 , 2020; compared to same time frame in 2019.

Consumers want the truth

Source: Global Web Index (GWI), Corona Virus Research, March 2020

37%

24%

32%

30%

60%

40%

0% 10% 20% 30% 40% 50% 60% 70%

United Kingdom

Germany

France

% of respondents

Disagree (Strongly/Somewhat) Agree (Strongly/Somewhat)

% who agree / disagree that brands should advertise as normalBrand advertising is expected to change

Search clicks drive higher conversions, especially for Retail

Our multi-touch attribution study found that on average, search clicks are directly followed by a conversion 2.6x more than clicks from other ad types, including social and video

3.4x3.0x

2.4x1.8x

Retail Travel Auto FinServe

Microsoft internal data. N = 1000 users per vertical, August 2019 – January 2020, US and PC only. Analysis of paid media only. Inclusive of display, native, partner, referral (including affiliates), social, video and paid search. Publisher and platform agnostic. Multiple paid digital media click touchpoints required for analysis inclusion.

Opportunities for local businesses

22%28%

“The Microsoft Audience Network is a very efficient way to add scale and it performs.”Trevor Hettesheimer,Manager of KPI and analytics, search and planning for Volvo Cars USA

A tailored audience to reach

Variety of targeting options

New dimensions with LinkedIn

Remarketing for undecided buyers

Automation and measurement

Automated bidding

Sophisticated tools

Maximum control over advertising spend

What could bePost-pandemic perspectives

Retaining new customers

Shift to sustainable products

94 93 90 8782

777368

63 6152 50

0

25

50

75

100

Reducedpackaging waste

Eco-friendlypackaging

Fair wages andwork hours (fortransport anddelivery staff)

Reselling/reusingreturns

Low CO2-Emission during

transport

Climate neutralshipping

Importance of sustainability aspects for online shopping in Germany 2019 (in %)

Aspect is important to me Aspect has influenced my buying decision

Source: Global Web Index (GWI), Corona Virus Research, March 2020Source: YouGov; Trusted Shops, August 2019

Adapting the new way of lifeShift in Travel from international to domestic destinations

Shift in Retail to local products & services

Shift in Automotive to Renewable energies

Shift in Finance to safe investments

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

microsoftadvertising.ai