Loans & Lending Insights

(Australia)

Microsoft Advertising. Intelligent connections.

MICROSOFT ADVERTISING

April 16th 2020

Real estate is experiencing a significant slowdown as a result of COVID 19

Source: Corelogic datasets capturing coronavirus shift.

https://www.corelogic.com.au/news/corelogic-datasets-capturing-coronavirus-shift

Up or relatively steady

Down less than 10%

Down 10 - 25%

Down 25 - 50%

Down more than 50%

0 10 20 30 40

Buyer enquiry shifts over past week

(20th March)

HOME LOAN

Up or relatively steady

Down less than 10%

Down 10 - 25%

Down 25 - 50%

Down more than 50%

0 10 20 30 40

Seller enquiry shifts over past week

(20th March)

105% 110%132%

211%

138%

93%111%

147%

196%

151%

116% 125% 130%

0%

50%

100%

150%

200%

250%

300%

350%

400%

0

20

40

60

80

100

120

Jan 4 Jan 11 Jan 18 Jan 25 Feb 1 Feb 8 Feb 15 Feb 22 Feb 29 Mar 7 Mar 14 Mar 21 Mar 28

Axi

s Tit

le

Ind

ex

Lending insurance search volume, clicks and clicks YoY by week

Clicks YoY Searches Trend Clicks Trend

Contracting housing market softened by RBA cash rate cuts inspiring users to compare new rates

Home Loan* comprises of home equity loans, mortgage loans, and loan refinancing.

Microsoft Internal Data Jan – Mar 2020, data across all devices.

The clicks and search volume trend is indexed to their respective starting value as at 1st January 2020.

1. COVID 19 caused a sharp

decline in consumer sentiment

and rise in unemployment rates,

affecting people’s confidence

and/or ability to purchase

property

2. Clicks began contracting at

average -8% WoW from 4 weeks

between Feb 29 and Mar 21,

however there’s been recovery

from Mar 21 due to 0.25% cash

rate announcement

3. Earlier in March, RBA cash rate

announcements trigger click

activity spikes on platform, as

people are looking to compare

new rates and refinance

HOME LOAN

Reactive audience shown by query volume spikes in line with RBA cash rate announcements

“Home Loan” consists of query bucket that contains “home loan” as a phrase within the query.

Microsoft Internal Data, Mar 2020, data across all devices.

- Lending* click activity

on Microsoft

Advertising platform

shifts in line with RBA

cash rate

announcements

- Clicks still higher year

on year, clicks trending

at -8% WoW for last 4

weeks from rising

coronavirus

uncertainty

0

50

100

150

200

250

300

Ind

ex

“Home loan”* searches in March by day

136%

Trending Queries:

home loan calculator/repayment

calculator

home loan rates/interest rates

[brand] home loan rates

home loan comparison

90%

HOME LOAN

Cash rate cut announcements inspire more engagements as measured by increasing clickthrough rate

Microsoft Internal Data, Mar 2020, data across all devices.

- Lending* click activity

on Microsoft

Advertising platform

shifts in line with RBA

cash rate

announcements

- Clicks still higher year

on year, clicks trending

at -8% WoW for last 4

weeks from rising

coronavirus

uncertainty

$2.63 $2.60 $2.47 $2.45 $2.38 $2.28$2.01 $1.93 $1.97

$0.89

$2.10 $2.03 $1.95

-$4.50

-$3.50

-$2.50

-$1.50

-$0.50

$0.50

$1.50

$2.50

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

CTR and CPC year on year by week

CTR YoY

CPC YoY

CPC

Cash Rate set

to 0.25%

Cash Rate set

to 0.5%

HOME LOAN

32% 48% 29% 31% 20% 18% 34% 50% 57% 60% 24% 5%

-10% -20%

30%

80%

130%

180%

230%

280%

330%

380%

0

50

100

150

200

250

300

350

400

450

500

Jan 4 Jan 11 Jan 18 Jan 25 Feb 1 Feb 8 Feb 15 Feb 22 Feb 29 Mar 7 Mar 14 Mar 21 Mar 28

Axi

s Tit

le

Ind

ex

Personal loan search volume, clicks and clicks YoY by week

Clicks YoY Searches Trend Clicks Trend

Heightened search volume in March due to corona relief queries and RBA cash rate cuts

Microsoft Internal Data Jan – Mar 2020, data across all devices.

The clicks and search volume trend is indexed to their respective starting value as at 1st January 2020.

1. Earlier in March, RBA cash rate

announcements trigger click

activity spikes on platform, as

people are investigating the

impact on personal loan rates

2. The search volume increase in

March unmet by increase in

clicks can be explained by

searchers investigating into:

• Loan relief

• Repayment deferrals

• Arranging repayment

schedules

PERSONAL LOAN

$1.85

$2.21

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50CPC trends YoY by week

2020 2019

Market competition has declined both year on year and week on week, marking a good time for

investment

PERSONAL LOAN

Microsoft Internal Data. Jan – Mar 2020, data represents all devices.

-25%

Personal loan searches revolve around speed and ease of application

PERSONAL LOAN

Microsoft Internal Data. March 2020, data represents all devices.

Timeliness Ease of application

Search volume is highest during weekend period, whilst click volume is highest towards start of week

Microsoft Internal Data Mar - Apr 2020, data across all devices.

Searches and clicks based on averages from 7th of March to 3rd of April.

Values depicted are indexed to the daily average.

- Earlier in March, RBA cash rate

announcements trigger click

activity spikes on platform, as

people are investigating the

impact on personal loan rates

- The search volume increase in

March unmet by increase in

clicks can be explained by

searchers investigating into:

- Loan relief

- Repayment deferrals

- Arranging repayment

schedules

0

20

40

60

80

100

120

140

Ind

ex

Searches

0

20

40

60

80

100

120

140

Ind

ex

Clicks

PERSONAL LOAN

Lending activity within Microsoft audience skewed towards older ages and males

OVERALL

- Lending* click activity

on Microsoft

Advertising platform

shifts in line with RBA

cash rate

announcements

- Clicks still higher year

on year, clicks trending

at -8% WoW for last 4

weeks from rising

coronavirus

uncertainty

Microsoft Internal Data. Jan – Feb 2020 aggregates. Data represents all devices.

59%

41%

Searches by gender

Female

Male

Benefits of the Microsoft Advertising

Audience for lending

Microsoft Search Network represents unduplicated visitors to Aol.com web search, Bing web

search and Yahoo! Web Search. https://about.ads.microsoft.com/en-au/insights/planning-

tools/microsoft-search-network-data?Market=AU

23% have household

income in the top

25%

9% are looking to

refinance

+44% lending

searches YoY (1st Jan

to 31st Mar)

OVERALL

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