The Expected Winter Season with Microsoft Ads

The winter season is currently the most trending topic in the e-commerce world. We have already covered this topic on our blog several times. For instance, in the article Preparing for the Winter Season, we shared some tips on how to achieve maximum results during the Cyber 5 season. We also took a closer look at the Winter Season with Google Ads strategies. In this article, we will focus on the topic from Microsoft’s perspective and discuss utilizing Microsoft Ads campaigns effectively.

Shopping behavior during the winter season of 2024 indicates significant changes and trends that marketers should consider when planning their campaigns. With the rise in online shopping and increasing competition across different product categories, consumer preferences are evolving.

• Most Christmas shopping begins only after Halloween, and up to 75% of customers plan to spend less than €500. 
• A large proportion of transactions (up to 95%) are made online, reflecting a growing interest in e-commerce. 
• The most popular categories this season are cosmetics, gift cards, and toys.
• Brand recognition plays a crucial role in purchasing decisions, with over 75% of consumers taking it into account. 
• Meanwhile, up to 55% of customers plan to shop at more affordable e-commerce platforms such as Temu, SHEIN, or Alibaba, showing a preference for budget-friendly options.

To succeed this shopping season, marketers should focus on optimizing their campaigns and aligning their messaging with the current trends.

People who search through networks are more likely to be planning a purchase or have already made one. When shopping online, consumers compare available products and search for the best deals. Microsoft Ads anticipates an increase in click volume across countries and categories between November 9th and December 7th. As the Black Friday week approaches, competition within individual categories intensifies, leading consumers to try to maximize their use of seasonal discounts.

Clicks in October have a significant impact on November, influencing conversions across various product categories. Launching campaigns early, regardless of the channel, can significantly enhance their performance during the most crucial months of the season.

Microsoft indicated in the chart below that the search volume in the retail sector grew by 19% from Q1 2023 to Q1 2024. The strongest growth was observed in the apparel, home and garden, and toys and games sectors.

The second graph shows that the search ratio is gradually increasing compared to the click ratio. This is because consumers are placing less focus on brands and paying more attention to product prices.

Microsoft Advertising is an ideal tool for promoting home and garden products. Users on the MAds platform search for these products 17% more frequently compared to the general internet average. In the smart devices and home appliances category, Microsoft platform users have a 22% higher search rate than on standard online platforms.

Audience Ads effectively capture customers’ attention with large-format visuals. These ads stand out among other formats, increasing the chances that consumers will notice and remember your offer. Additionally, bold graphic elements paired with compelling visual content strengthen positive brand perception and drive higher engagement from the target audience.

Performance Max (PMAX) campaigns use multi-format and multi-channel optimizations to ensure effective promotion of products and services. These campaigns combine various formats (text, images, video) and distribute them across multiple channels to maximize reach and relevance. They leverage automation and artificial intelligence to tailor content based on user behavior, thereby improving performance across all marketing networks.

Microsoft reported that between April and June 2024, Performance Max (PMax) campaigns outperformed traditional search campaigns. Key results included:

• Increasing click-through rates (CTR) for multimedia ads by 5%,
• Boosting CTR for product ads in Copilot by up to 25%,
• Achieving a 6-fold increase in CTR for dynamic search ads on Bing.

Additionally, retail customers who viewed ads created through PMax were 2.6 times more likely to visit the website and 4.2 times more likely to convert compared to those who didn’t view the ads.

If you want to boost your brand’s visibility, focus on creating appealing images. Capture consumers’ attention with bold visuals that effectively showcase your products and communicate your brand identity.

Users in Europe who saw Multimedia Ads alongside traditional search ads experienced a 3.1x increase in click-through rates and a 4.0x increase in conversion rates.

The upcoming winter shopping season is expected to see intense online activity and heightened competition across various product categories. Microsoft Ads forecasts an increase in clicks from November 9th to December 7th, with peak activity during the week leading up to Black Friday. Consumers will prioritize seasonal discounts and seek to capitalize on special offers.

To stand out and maximize sales during the 2024 winter shopping season, it’s essential to stay ahead of current consumer trends. That’s why being well-prepared is crucial to avoid any surprises. Partnering with a campaign optimization tool like BlueWinston can help you make the most of this season. Feel free to reach out to us as soon as possible to get started.