@BingAds

Seizing the Mobile OpportunityInsights from the Bing Network

May 3, 2023

Mobile ecommerce continues to surge

UK mobile shoppers by device

Source: UK Mobile Shoppers, eMarketer 2014 -2019

2014 2015 2016

Shoppers on Smartphones (Million)

28.2 31.9 35.3

% of Digital Shoppers

74.5% 80.6%67.6%

22.5 25.4 27.3Shoppers on Tablets (Million)

54.1% 59.2% 62.3%% of Digital Shoppers

Increasing ad spend on mobile

Spend on the rise

Source: UK Mobile Ad Spending, eMarketer 2014 -2019

2014 2015 2016Mobile Internet Ad Spending (Billion)

£2.3 £3.3 £4.4

% YoY Change 45% 35%90%

UK mobile users who have made a purchase due to research conducted

on a mobile device2 (% of respondents)

Writing a product or service review

None of these

Purchasing for home delivery/ collection

Reserving for collection in-store

Researching specific details

Browsing with intention of a purchase

Checking and comparing prices

Browse products for fun

12%

2%

24%

20%

23%

26%

28%

33%

7%

10%

19%

20%

21%

25%

26%

40%

Shopping related mobile activities: Smartphone Vs Tablets1

(% of respondents)

Smart-phonesTablets

64%19%

17%Chart Title

Yes

plan to pur-chase in near future

No

Mobile devices are critical to the purchasing funnel

1: Source: eMarketer, Webloyalty and Conlumino, “The Mobile Consumer”, Sep 20152: Source: eMarketer, xAd and Telmetrics, UK Mobile Path to purchase 2014

Over 90% of smartphone & tablet users are using their mobile devices for shopping-related activities, most popularly for browsing & comparing prices.

80% of UK mobile device users have either made a purchase or plan to make a purchase due to research conducted on their mobile devices.

Many timesa day

A few timesa day

At least once

a week

At least once

a month

Less than

once a month

4%7%

23%21%

11%

Smartphone M-commerce shoppers, by frequency1

(% of respondents)

Smartphone shopping habits are shifting

1: Source: eMarketer, OfCom-UK, International Communications Market Report 2015.2: Source: eMarketer, xAd and Nielson, 2015 Mobile Path to purchase, UK 2015

One third of smartphone shoppers actively shop on their smartphones at least once a week.

Two thirds of UK smartphone shoppers now primarily shop in the comfort of their home.

2013 2014 2015

43%61% 64%

57%39% 36%

Location where UK smartphone shoppers researched products via smartphones2

At home Out of home

42%

Smartphone opportunities for advertisers

19% 36%Currently use mobile advertising

Plan to use mobile advertising

Have never used mobile advertising

According to an IAB study, only 42% of UK organisations are promoting products/services via ads on smartphones.

Source: IAB UK Mobile Advertiser Snapshot StudyBase: All respondents including screen -outs (713)

26%It’s critical

18%It’s useful, not

essential53%

It’s important

3%It’s of limited

or no importance

According to an IAB study, 79% of UK

organisations consider mobile advertising an

important as part of their overall

advertising strategy.

How critical is the smartphone to the overall advertising strategy??

Source: IAB UK Mobile Advertiser Snapshot StudyBase: All respondents answering the question (295)

Mobile Device trends on the

Bing Network

YoY search volume growth

Search volume share by device

Searches on mobile devices see robust growth on the Bing Network

Internal Source: UK Bing Network search volume year on year growth across mobile devices, Dec 2015 vs, Dec 2014 Internal Source: UK Bing Network search share across devices, Dec 2015

Searches from mobile devices make up almost two-thirds of searches on the Bing

Network

38%

25%

37%PC

Tablet

Smartphone

+14%

+23%

Over 50% of searches on smartphones are from people aged less than 35.60% of searches on smartphones and tablets are by women.Internal Source: UK Bing Network search volume (Bing and Yahoo sites) split by demographics for the period Dec 2014

– Dec 2015

Smartphone

Tablet

PC

21%

12%

17%

34%

15%

18%

32%

33%

30%

11%

32%

26%

2%

8%

9%

< 24 25-34 35-49 50-64 65+

57%

61%

51%

43%

39%

49%

Series1 Female

UK search share by demographics across devices

Under 35’s & Women lead mobile device charge on the Bing Network

• Social, Health and Restaurants & Food lead smartphone search share• Tablet share particularly strong for Retail, Auto and Travel

UK search share by device across categories

Tech & TelcoCareers & Education

FinanceB2B ServicesB2C Services

ReferenceTravel

AutoEntertainment

GamblingOthersRetail

Restaurants & FoodHealthSocial

16%

17%

18%

19%

19%

21%

23%

24%

25%

25%

28%

30%

35%

37%

43%

8%

10%

12%

7%

14%

12%

15%

15%

12%

10%

11%

16%

13%

14%

7%

76%

74%

70%

75%

67%

67%

62%

61%

63%

65%

61%

54%

52%

50%

50%

Smartphone Tablet PC

Mobile device share by category on Bing Network

Internal Source: UK Bing Network search volume (Bing and Yahoo sites) split by devices for key categories, UK, Dec 2014 – Dec 2015

11

UK search share across devices over weekdays and weekends for top 3

categories

1 in 2 searches on the weekends are from mobile devices on the Bing Network. Retail sees the highest share of searches from mobile devices on the weekend.

Weekends important for mobile device searches

Internal Source: UK Bing Network search volume (Bing and Yahoo sites) split over weekdays & weekends by devices for top 3 categories, UK, Dec 2014 – Dec 2015

12

Weekday Weekend Weekday Weekend Weekday Weekend Weekday Weekend

27% 35%

0%

28% 35%21% 28% 17% 21%

11%15%

0%

15%19%

14%20%

11%15%

62%50%

0%

57% 47%65%

52%72% 64%

Smartphone Tablet PC

All up FinanceRetail Travel

• Mobile device searches are strongly aligned to leisure time with peak volumes rising during the evening when consumers are in a very different mindset

Mobile device searches driven by consumers in their leisure time

Internal Source: UK Bing Network search volume (Bing and Yahoo sites) by hour of the day on weekdays & weekends by devices, Jan 2016

UK search share by hour of the day on the weekends/weekdays across devices

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 230%1%2%3%4%5%6%7%8%9%

10%

Hot hours = > 50% of the searchesMobile devices: 4pm – 10 pmPC: 10 am – 4 pm Weekdays Weekends

Hot hours = > 50% of the searchesMobile devices: 3pm – 10 pmPC: 1 pm - 7 pm

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Smartphone PC Tablet

Investments in growing our supply

Platform investments to drive performance

Ad performance on smartphones

Ad Extensions that drive user engagement

+14%mobile search

results

+24%click growth

+40%click through

rate

Internal Source: UK Bing Network year on year trends on smartphones, Dec 2014 & Dec 2015

Device KPIs on the Bing Network in the UK

Smartphone searches provide stronger CTRs and lower CPCs

Average CPC by device, on Bing & Yahoo sites in the UK, December 2015

100%

182%

220%

£0.33

£0.29

£0.22

Average CPCsCTRs vs. desktop (indexed)

Average CTR for top queries in the UK on Bing & Yahoo sites, indexed to desktop, December 2015

Get local with your mobile audience• Combining ad extensions on mobile results in higher

average CTR. • Sitelinks and location extensions are key on

smartphones.

Internal Source: Analysis based on mainline performance of Ad Extensions on the Bing Network (Bing & Yahoo Sites) from smartphones, Dec 2015

Text Ads Text Ads + Location Extension

Text Ads + SiteLink Extension

Text Ads + SiteLink Extension + Location

Extension

3%5%

11%

16%Top ad formats for smartphones on the UK

Bing Network, by highest average CTR

75%

22%

2% 1% 0%

68%

16%8% 4% 4%

64%

20%10%

6%1%

SmartphonePCTablet

Paid clicks according to ad position for Bing UK searches across devices

It pays to be first on smartphone searches on the Bing Network• 75% of smartphone clicks are from the top ad position which

is significantly higher than on PC and Tablet

Internal Source: UK Bing Network clicks (Bing site only) split across the ad positions by devices, UK,, Dec 2015

Ad Position 1

Ad Position 2

Ad Position 3

Ad Position 4

Ad Position 5+

what which why where when how who

48%

32%

25% 23% 23%19%

13%

More questions are asked on smartphones Question related queries

on Bing smartphones have increased by more than 20% YoY, with the highest growth in the what’s & which’s.

Internal Source: UK question query growth on Bing by question type on smartphones Dec 2015 vs. Dec. 2014

Growth in

Question Query YoY

21%

UK question query growth on Bing smartphones searches

MERCHANT RATINGSAnnotations that enhance your ads by adding icons and links to high-rated reviews within the ad

MOBILE PRODUCT ADSShowcase your products in an impactful ad format that includes custom images, price and company name.

5

6

Increase your clicks on mobile by adopting Mobile ad products

APP EXTENSIONSPromote your app on Bing. Compatible with every major app store.CALL EXTENSIONSMake it easy for people to call your business by displaying your phone number.

3

4

MOBILE SITELINKSDrive more traffic to your website by promoting specific pages on your ads.

LOCATION EXTENSIONSDrive foot traffic to your business with your business address and directions.

1

2

1

2

4

3

6

5

Ad Extensions that drive user engagement

Investments in relevancy,matching, and click prediction

Source: Microsoft Internal Data, Microsoft and Yahoo DE sites, Jan 2015 vs Jan 2016, mobile devices only.

How should you optimise for the mobile device opportunity?

Invest in the Mobile experienceDevice specific ad copy and device optimised landing pages that recognise the user context

Tailor campaigns to the audienceMobile devices bring in new audiences, search behaviours and search queries

Extensions to drive engagementUtilise sitelinks, location and call extensions to drive CTR gains

Stay on TopOptimise bids to stay in the top two page positions, particularly for smartphone

Thank You!

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