Microsoft Advertising Releases a Free Holiday Guide For Brands

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The holidays are approaching and Microsoft Advertising wants to help your brand prepare before the shopping season arrives.

Microsoft Advertising has released a new free guide called “Your Festive Season Marketing Playbook” which includes all the information you could need to prepare the most efficient and impactful ad strategies for the latest holiday trends and shopping behaviors. 

Below, we will share some highlights to help steer your ad strategies in the coming months.

Start Planning Early

The guide encourages brands to start planning their campaigns and budgets early, to avoid falling behind. Data from past years suggests that shopping for the holiday season may start as early as September, with a notable increase in both traffic and purchases between September and October throughout much of the world. 

October Clicks Matter In November and December

Another sign that holiday shopping begins earlier than expected is the discovery that approximately two-thirds of purchases in November and half of December purchases can be traced back to clicks in October. 

Now is when brands are able to plant the seeds in shoppers’ heads that turn into holiday purchases. Using remarketing, in-market audiences, and automated bidding strategies, you can develop these initial clicks into later sales.

Deal Seeking is Up

According to the guide, American consumers are spending much more time hunting for deals than in the past. Around two-thirds of shoppers are now devoting significantly increased time to looking for coupons, promotions, or other types of deals. Compared to other regions, shoppers in this area spend approximately 33% more time using search to find deals compared to the average shopper around the world. 

Desktop Drives Holiday Sales

According to the data collected from the Microsoft Advertising Network, just 28% of holiday ad clicks are made by mobile devices, which only account for 22% of total retail conversions around the holiday shopping season. 

This suggests that desktop devices are contributing to the bulk of holiday shopping activity despite the major rise in mobile shopping over the past few years. 

For more about these shopping trends, ad strategies, and holiday marketing recommendations, download the Festive Season Marketing Playbook for yourself here.

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LinkedIn to Test Targeted Ads During Streaming Content

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Would you like to be able to run video ads on streaming services that specifically target LinkedIn users? The social network is testing a new ad product that allows advertisers to reach LinkedIn’s 930 million users as they watch TV or movies at home. 

In a statement to Reuters, the Vice President of Marketing Solutions for LinkedIn, Penry Price, said: “In-stream video ads can change the way brands and buyers reach and engage their audiences.”

The new ad format comes following reports that the company’s ad platform is already up in sales by 8% year-on-year and is looking to further grow its advertising profits.

The new format could also be a boon for advertisers looking to increase their ROI by reaching their audiences with ads while they are most receptive. 

LinkedIn’s ad growth has been a bit of a surprise because it comes at a time when other ad platforms are being hit by falling ad budgets and an overall uncertain economy. Meanwhile, the social network’s ad platform continues to drive revenue from ad sales and subscriptions for recruiters, professionals, and B2B salespeople. 

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Microsoft Advertising Will Only Run Ads By Verified Advertisers Starting August 1

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Effective August 1st, Microsoft Advertising will stop running ads from anyone who is not a verified advertiser. 

The company announced the change this week, almost exactly a year after the Microsoft Ads Advertiser Identity Verification program was announced back in June 2022. 

At the time, the company said the verification program was part of their efforts to “enhance digital advertising safety” by reducing deceptive ads on the platform.

To ensure that any valid business can be verified in a timely manner, the process is automated and relies on government-issued personal identification or business-related documents for verification. 

Now that the majority of advertisers on the platform have been fully verified, the company is moving to stop running ads by those who have not undergone the verification process.

This will happen in a few steps:

  1. Starting July 1, new advertisers will be required to be verified before Microsoft Advertising will serve any of their ads. 
  2. Starting July 15th, brands are encouraged to contact Microsoft support if they have not been verified and have not received an email inviting them to become verified.
  3. Lastly, on August 1, Microsoft Advertising will begin only serving ads from verified advertisers.

What Information Microsoft Advertising Gives Users

Once verified, all ads from a Microsoft advertiser include information about the organization(s) behind the ad. This includes the advertiser’s name and location, information about targeting details used to show the ad, and who is paying for the ad. 

For more, read the newly updated help document from Microsoft Advertising about advertiser identity verification.

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Microsoft Advertising Makes Predictions For Ad Trends in Early 2023

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Microsoft Advertising is helping you get ready for the new year with three new predictions for upcoming trends in digital advertising. 

As we enter the final month of the year, many are already planning their marketing and ad campaigns for the start of 2023. Unsurprisingly, many of these campaigns will be focused on health and self-betterment as consumers make their New Year’s resolutions.

According to a recent study by Opeepl, approximately 60% of people reported making a New Year’s resolution in 2022 with the most popular resolution being to get healthier.

Even more interestingly, almost half (49%) of those who didn’t make a resolution reported that they still made changes to their lives to improve their wellness around the beginning of the year.

To help you take advantage of this with ads that will connect with health-minded consumers in the start of 2023, Microsoft Advertising shared three predictions for upcoming trends in Health and marketing:

‘Organic Food’ Will Spike In Interest

Microsoft believes clicks for ads related to organic food may leap up to 20% during the week of January 14 compared to the same week in December.

With that in mind, Microsoft recommends planning ahead:

“Target users searching for healthy, nutritious food options in January with In-market Audiences. Our internal forecasting data suggests that clicks will peak during the winter on January 14, so although you should ramp up your budget after the holidays end, make sure you don’t run out midway through the month.”

Target Sports Apparel From Now To Late January

The predictions indicate that searches for sports apparel are likely to surge beginning early this month and lasting through January, creating an opportune time to target customers with related shopping campaigns:

“Use Shopping campaigns to showcase your sports and fitness apparel products late November and early December during holiday shopping sales. Microsoft internal data estimates that consumers will be most heavily searching for gear between the weeks of and November 26 and December 3, but activity will remain high until January.”

‘Fitness & Nutrition’ Searches Regularly Surge In Interest

While it is true that searches for fitness and nutrition-related topics are likely to increase in the new year, Microsoft Advertising also notes that this trend is likely to pop back up throughout the year. Because of this, it may be better to take an “always-on” approach to targeting these areas:

“Using 2021 data as a comparison for what to expect activity wise over the next year, we can assume clicks for nutrition and fitness will peak in January, May, July, and October. Consider an always-on approach since Audience Ads are shown to drive users down the funnel to search tactics.”

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Google Introduces Frequency Targeting For Youtube Ads

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Google is officially rolling out frequency targeting controls for video ads on YouTube according to a new blog post from the company.

With this move, advertisers can now take control and set limits for how often individuals see their ads.

In the past, the only way to do this was through connected TV campaigns in Google Display & Video 360 – more advanced advertising tools and features.

What Is Frequency Targeting For Ads?

Frequency targeting lets advertisers set a target number of times their ad will be shown to specific users.

This helps make the most of ad budgets by preventing ads from being repeatedly displayed to unreceptive audiences.

As the announcement for the feature explains:

“This will help advertisers optimize towards more precise reach and frequency, while ensuring that we continue to provide a suitable advertising experience for viewers. Target frequency allows advertisers to select a frequency goal of up to four per week and our systems will optimize towards a maximum unique reach at that desired frequency.”

Why Set a Frequency Target For Your Ads

Though there may be times when repeatedly seeing the same ad may be beneficial to motivate potential customers, there is a limit. Most studies indicate that repeatedly seeing ads is much more likely to contribute to diminishing returns and bad will with consumers.

For example, one Google-commissioned study found that TV advertisers see a decrease in ROI of 41% when the frequency of their ads was more than 6 views per week. Based on the data, more than 46% of ad impressions were above this threshold, making nearly half of ad impressions wasted.

The study says:

“Almost half of the linear TV impressions in our study were considered waste but the same study from Nielsen shows that brands can increase their average weekly frequency from one to three on YouTube with a consistent ROI.

“This is a huge opportunity for marketers to maximize their impact across the same set of people they are already reaching today.”

Final Details

Frequency targeting is now rolling out to all Google Ads users around the globe. 

Google claims that over 95% of all campaigns using frequency targeting hit their goal using the tool in testing.

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New Google Tool Turns YouTube Videos Into 6-Second Ads

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Google is officially releasing its bumper ad tool to the general public. The tool, now being called simply “trim video”, makes it easy to turn existing videos (up to 140-seconds long) into short but sweet clips that can then be used as bumper ads for video campaigns.

Though the tool has been in testing in various forms since 2019, this is the first time the general public has been given access to it for their campaigns. 

In the time the tool was in beta testing, Google says it has “helped hundreds of brands drive more reach, frequency, and efficiency by effortlessly generating 6-second bumper ads.”

The announcement of the tool describes trim video like this:

“Trim video is a video ad production tool that helps advertisers make new bumper ads from their longer video assets quickly. Trim video uses Google Machine Learning to simplify the process of bumper ad creation by identifying the most important frames in a long ad and turning them into 6-second videos. It also has simple editing features that allow advertisers to modify the final output.”

Using the tool is as simple as copying and pasting a link to one of your existing YouTube videos or your Google Ads library. From there, you’ll be given four different options you can edit further or save as a bumper ad. 

To access the trim video tool for yourself, sign into your Google Ads account and select the asset library page. Then, select the tools and settings icon and look under “Shared Library” to find “Asset Library”. Here you’ll find the trim video tool under the Video section.

For more about the trim video tool, read the full announcement or visit the Help Center article dedicated to the tool.

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US Search Advertising Continues To Flourish According To New Report

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Brands across the US are increasing how much they spend on search advertising, with the overall US search ad spend predicted to reach almost $112 billion by next year. That is nearly double the amount spent in 2019, according to the new report from Insider Intelligence.

US Search Ad Spend 2019-2026 graph

This year, the data says $99 billion is being spent on search advertising. Much of this is driven by Google, which receives about 56% of the total ad spend. Google is in fact driving much of the growth in this area, outpacing all other traditional formats. 

While Microsoft remains the second-leading search ad platform, the data indicates that other platforms like Apple and Amazon may eventually overtake it. 

Data shows that Apple Search Ads will receive $5 billion dollars alone in 2022 revenue thanks to new ad and placement options which allow brands to find less competitive ad space.

Meanwhile, Amazon is gaining ground as the best platform for bottom-of-funnel customers. 

Interestingly, the report indicates that TikTok is also a growing force in search ad spending. The new data shows that up to 40% of 18- to 24-year-olds in the US already prefer to use TikTok and Instagram for their searches instead of Google. This may explain why recent studies showed that brands spent 60% more on overall advertising on the platform. 

Mobile Vs. Desktop

Unsurprisingly, mobile search advertising spend is far outpacing desktop by about two-thirds and shows no sign of slowing down. 

One indication of this is the fact that more than half of the U.S. population was reported to have used a smartphone to make an online search in 2016. By next year, that number should reach 70% by 2023. 

Privacy-Focused Platforms Lose Steam

After years of slow growth, privacy-first platforms like DuckDuckGo appear to be losing traction with US searchers. This is reflected in other recent reports, including data showing that DuckDuckGo had fallen to less than 100 million daily searches in June. 

For more findings about the current state of search advertising, download the full report from Insider Intelligence here.

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Ecommerce Brands Increased Ad Spend On TikTok 60% In Q2

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TikTok continues to gain more interest from brands – especially ecommerce brands – as it proves that the social app is here to stay. New data collected from over 5,000 stores shows that ecommerce brands spent 60% more to advertise on TikTok in Q2 of 2022. Even more, analysts believe the trend will continue for the foreseeable future.

This information comes from Triple Whale ecommerce analytics, which gathered the data from all the stores using their tools to estimate the overall growth of ecommerce ad spend on the increasingly popular social video app.

“It’s time to get on TikTok while the needle’s still moving in the upward direction, or before users are completely inundated with ads from new brands,” advises Triple Whale. TikTok “is no longer a channel serious paid media buyers can avoid without cutting into revenue and profit.”

Other Findings About Ecommerce Q2 TikTok Ad Spend

Notably, the most significant increases don’t come from major brands. Smaller retailers with annual sales between $1 million and-$5 million are instead leading the charge.

Along with these findings, the report also included a few other interesting facts:

  • Overall ad spend across the 5,000 online retailers rose by 11% in Q2 to a total of $529.7 million
  • Retailers with revenues between $1 million and $5 million are contributing to the biggest increases in ad spend
  • In the first two quarters of this year, retailers spent a total of $48.4 million on TikTok ads – which was a 231% increase over the previous 6 months
  • CPMs vary by industry. Baby, books and collectibles niches have a CPM below $10, while health & beauty & digital products are over $14 CPM
  • Stores with over $25 million in sales have the highest average order values and ROI

How TikTok Compares To The Competition

While TikTok is showing impressive growth in popularity among online retailers, it still trails Facebook and Google by a significant amount. Specifically:

  • Despite only growing 5.6% from Q1, Facebook remains the leading ecommerce choice for advertisers by a wide margin
  • Google grew 20.5% in Q2
  • Snap declined 10.8% in Q2

If you’ve been writing off TikTok as just another social network that will be here today and gone tomorrow, it is likely time to reconsider. The platform seems to be cementing its place among users and winning over brands through increased ad revenue.

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Google To End Support For Expanded Text Ads This Month

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As announced last August, Google is set to stop allowing advertisers to create, edit, or start running expanded text ads across the search engine’s ad network starting June 30, 2022.

Though expanded text ads have been a popular way to make your ads stand out and increase click-through rates, the company says it plans to replace the ad format with responsive search ads.

The goal, according to Google, is to simplify running ads while using automation to improve ad performance. 

According to the announcement, advertisers who have already made the switch from expanded text ads to responsive search ads saw an average 7% increase in their conversions.

Why Google Is Switching To Responsive Search Ads

Things are shifting all the time online, including the ways we are searching. According to Google, at least 15% of all search queries are never-before-seen searches. With responsive search ads, Google is trying to help brands keep up to date with these ever-changing trends and to always be where their audience is.

How To Prepare

For the time being, existing expanded text ads will be largely unaffected by the change. Though they cannot be edited, existing ads in this format will continue to run as normal. However, no new expanded text ads can be created.

To help you prepare for the upcoming change, Google recommends taking these steps:

  • Repurpose high-performing text ad content into responsive search ads and focus on improving ad strength.
  • Apply changes suggested in the account’s Recommendations
  • Pin headlines and other copy in specific positions to ensure they always show.
  • Use variations to test different ad versions.
  • Review assets in cross-campaign reporting based on performance to identify the most effective messaging.
  • Evaluate incremental growth in impressions, clicks and conversions at the ad group and campaign levels.

For more information, you can read the full announcement here.

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Google Shopping Ads Are Getting a “Swipeable” Makeover

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As part of its big Google Marketing Live event this week, the search engine announced a big makeover is coming to some shopping ads in the near future.

Initially limited to apparel-related shopping results, Google is revamping both online ads and organic listings to be more visually exciting and drive more engagement.

You can get a  preview of what to expect below:

Swipeable Google Shopping Ads

The revamp brings shopping ads more in-line with the more visual organic listings which have been rolling out since last year.

Google is accomplishing this using Search or Performance Max ad campaigns, though the images or graphics must be provided by advertisers.

As the company described the makeover:

“These will be clearly labeled as ads and will be eligible to appear in dedicated ad slots throughout the page. We’re also rolling out new ways to showcase multiple product images within Shopping ads in the U.S., along with information such as product descriptions, reviews, and product availability, with no further action required of advertisers.”

Though it is unclear when this revamp will be rolled out, advertisers should be excited by the more stylish and engaging presentation when it arrives.

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