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Mobile Local Ads: The next big opportunity?

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  • 1. Mobile-Local ads: The next big opportunity? Frank Albert Coates Mobile & Local Evangelist April 28, 2010 Google Confidential and Proprietary
  • 2. Four Factors Driving Opportunity 1 Information Ubiquity 2 The Mobile Web Location, 3 Location, Location 4 Driving Action Google Confidential and Proprietary
  • 3. Enabling Consumers to Use Mobile Communicate Entertainment Find Information Transact Google Confidential and Proprietary
  • 4. 1. Information Ubiquity Google Confidential and Proprietary
  • 5. 9%  46% Smartphone % of global mobile phone sales 2008 vs. 2013 Google Confidential and Proprietary Source: Gartner as cited by MediaPost, August 2009 5
  • 6. Case Study: More Conversions, Lower Cost Mobile advertising seems to be a well-kept secret…. we’re finding that mobile can actually deliver a lower cost per conversion than desktop targeted ads. Retailer Location Danny Huynh, Associate Search Director for Razorfish Results  7.5% more efficient cost per conversion compared to desktop campaigns  Over 9.3% more conversions with mobile-specific ad text Google Confidential and Proprietary 6
  • 7. The Mobile Apps Explosion • Over 4 billion app downloads and counting • Average Android user downloads 40 apps • 25% of iPhone & Android users spend 2 hours per day in apps Google Confidential and Proprietary Source: Complete, Inc. 2009, mocoNews 2009
  • 8. Case Study: Increased Conversions on Apps CTR with Google Mobile Ads [for Apps] is consistent and often even better that what we currently see [on desktop]…. clicks are great, but even more impressive, is the direct effect on app downloads. Matthew Shadbolt, Director of Internet Marketing for The Corcoran Group Results  Improved performance: 8 to 10 times higher CTR  Increased downloads: Achieved an estimated 20% of total app downloads Google Confidential and Proprietary
  • 9. Make it easier to promote apps AdWords for mobile apps • Transparent setup: Automatic device targeting • Improved call-to-action: Ad text optimized Google Confidential and Proprietary
  • 10. 2. The Mobile Web Google Confidential and Proprietary
  • 11. Google Confidential and Proprietary
  • 12. Leveraging the Power of the Cloud Google Translate Google Voice Search Google Confidential and Proprietary
  • 13. 3. Location, Location, Location Google Confidential and Proprietary
  • 14. Location Makes Search More Actionable 37% of local online 46% of local online searchers visited a searchers contacted a business in person business by telephone Find a store Order nearby a pizza Get driving Phone the directions business Google Confidential and Proprietary 14 Source: TMP Directional Marketing and comScore, 2009
  • 15. Half a Decade of Location Investments Google Confidential and Proprietary
  • 16. Local Mobile Ad Solutions Sponsored Ad Listings Near Me Now Click to Call Google Confidential and Proprietary
  • 17. Ads on mobile linked to Google Places Location extensions Coupons Google Confidential and Proprietary
  • 18. Multiple locations: Store locator ads Google Confidential and Proprietary 18
  • 19. Challenges with mobile local advertising Advertiser User Targeting Privacy Scale Trust Offline Conversion User Experience Tracking Google Confidential and Proprietary 19
  • 20. 4. Mobile Drives Action Google Confidential and Proprietary
  • 21. Explosive Growth in 3 Years Android Nexus One Google Mobile “Shopping” Category Query Growth Smart Phone Launches Moto Droid & Eris Android myTouch iPhone 3GS Blackberry Storm Android G1 iPhone 3G Palm Pre iPhone Google Confidential and Proprietary 21 Source: Google Internal Data, based on a basket of 20,000 keywords within the shopping category
  • 22. Most Active, Biggest Spenders Total Internet Spending in the Last 6 Months Under $50 - $100 - $200 - $500 $1k - $2.5 - $5k - $7.5k $10k None $50 $100 $200 $500 - $2.5k $5k $7.5k – $10k + $1000 * % of active mobile users who spent money in one of the “amount spent” categories * Index: Higher = population more likely to use their phones to access mobile content Google Confidential and Proprietary Source: comScore, Google commissioned study, October 2009
  • 23. Google Local Shopping Google Confidential and Proprietary
  • 24. Mobile Transactions for Fortune 100 Retailer Increasing order value More transactions More visitors on mobile from mobile phones t=0 More time spent on mobile Google Confidential and Proprietary
  • 25. Case Study: Mobile Drives Online Sales Customers were engaging with our website through their mobile devices and actually completing transactions…. only now does the data exist to support heavy investment [in mobile]…. as part of our long-term growth strategy. Search Engine Analyst for Fortune 100 National Retailer Results  Incremental traffic: Over 17% increase in iPhone visits  Great ROI: Achieved a 6:1 return within the first three months  Increased online revenues: Grew average order value on mobile 14% Google Confidential and Proprietary
  • 26. Thank You ! frankalbert@google.com Google Confidential and Proprietary