make the most of upcoming end-of-fiscal-year seasonality · summary of findings. as lockdown starts...
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Make the most of upcoming end-of-fiscal-year seasonality
Australia – May 27, 2020
Microsoft Advertising. Intelligent connections.
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Summary of findingsAs lockdown starts to ease and Australians focus on the road to recovery, end-of-financial-year (EOFY) sales could act as an incentive for price-sensitive customers to shop beyond essential items. Success of Click-Frenzy Mayhem indicate a possible improvement in consumer spending intent.
EOFY seasonality kicks in from May and increased activity lasts until August giving a pocket of
opportunity for retailers to move stocks
Australians spent $82.2b in the retail sector during 2019 EOFY
period* – ABS data
Consumer Electronics and Apparel witness highest growth in searches
during EOFY seasonality
*Source: Australian Bureau of Statistics | Retail Turnover | May – Jul 2019
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Market watch
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Established sales events such as EOFY, Mother’s Day and Valentine’s Day drove strong growth for first half of 2019
These events are becoming popular online, growing by 17.6% in the first half 2019, 3.6 percentage points above the average – Auspost
Source: Inside Australian Online Shopping | 2019 eCommerce Industry Update | Auspost
Source: Inside Australian Online Shopping | 2019 eCommerce Industry Update | Auspost
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Household appliances were the most reviewed products in June 2018, indicating consumer interest in finding the best bargain for these big-ticket items
https://www.choice.com.au/shopping/everyday-shopping/bargain-hunting/articles/most-popular-products-in-the-eofy-sales
EOFY top 5 products
1. Electric Heaters2. Washing Machines3. Televisions4. Coffee Machines5. Ovens
Source: Top 5 reflects traffic to product reviews on choice.com.au from June 2018
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“Click Frenzy smashed records and created an uplift for retailers across the country” –Power Retail Australia
+70%Year-over-year (YoY) uplift in traffic
(with a peak of 165,000 concurrent visitors on the site)
+173%Average revenue uplift YoY
Technology and Sports were the strongest performing categories
https://powerretail.com.au/news/click-frenzy-mayhem-2020/https://powerretail.com.au/in-focus/was-this-the-biggest-click-frenzy-ever/
Click-Frenzy drove a very much needed revenue uplift for retailers
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Search trends on MSA
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EOFY seasonality kicks in from May and continues until August providing a long window of opportunity for retailers to move stocks
Microsoft internal data | Retail | Search Volume | 2019
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Indexed search volume by month
Click-Frenzy Mayhem EOFY Sales Prime Day
Month-over-month (MoM) uplift in search volume
+14%+3% +4% +5%
Winter Sales
With Amazon postponing its Prime Day to September, we might see a slightly different pattern this year
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User engagement intensifies from mid June and continues until August
4.72% 4.78%4.86%
4.75%4.62% 4.60%
4.84%4.95% 4.97%
5.14%
5.61%
5.64% 5.62%5.59%
3-May 10-May 17-May 24-May 31-May 7-Jun 14-Jun 21-Jun 28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug
Weekly CTR Trends
Week ending date
Microsoft internal data | Retail | May - Aug 2019 | CTR
End-of-financial-year sales peak
Amazon Prime Week
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Search Seasonality (indexed search volume)
Apparel Dept. store Electronics & OfficeHome & Garden Online Marketplace8%
13%
25%
20%
34%
Search Volume (%)
Dept. Store Online Marketplace Home & Garden
Apparel Electronics & Office
Apparel and Consumer Electronics are most responsive categories to the EOFY seasonality
Microsoft internal data | Retail | Search Volume | 2019Microsoft internal data | Retail | Search Volume | Jan – Apr 2020
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Most searched products in EOFY 2019KEY SUB-CATEGORIES BY SEARCH VOLUME (M A Y-J U L Y 2019)
Microsoft internal data | Retail | May - Jul 2019 | search volume
Not an exhaustive list per category. Only categories important for EOFY are included.
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What are the most recognised brands in each category?*
kmart
Bigw
target
Myer
DJ
Top department stores
JB HI-FI
Officeworks
HarveyNorman
TGG
Bing Lee
Top electronic stores
Bunnings
Ikea
Spotlight
Fantasticfurniture
Amart
Top home & garden stores
Source: Microsoft internal data | Jan – Apr 2020*brands ranked by search volume
Iconic
Cotton On
Country Road
Asos
Best and Less
Top Apparel stores
ebay
Amazon
catch
Kogan
Grays Online
Top Marketplaces
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Key Takeaways
With customers shopping increasingly online, Australian retail businesses have increased their eCommerce capability
1. EOFY is a good opportunity for retailers to attract customers from the comfort of their homes.
2. While it will not make up for the losses suffered in past few months, it could offer the much-needed boost
3. Brands should ensure there is strong keyword coverage, capturing increased demand for online retail products & services
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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