Adwords In A Down Economy


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Presentation on Adwords in a Down Economy. How Adwords marketing can help even the smallest of companies during a recession.

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Adwords In A Down Economy

  1. 1. The Value of Search Marketing in a Down Economy Google Confidential and Proprietary 1
  2. 2. Challenge and Opportunity “Brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost during good economic times…” Professor John Quelch, Harvard Business School So how do you speed up in a slowdown? Source: Harvard Business Online, March 2008 Google Confidential and Proprietary 2
  3. 3. With Marketing That Is… Essential Cost-Effective Measurable Nimble Google Confidential and Proprietary 3
  4. 4. Search: One of the Most Popular Online Activities 192M Online searchers in the US Almost half of all US Internet users search online on a typical day – up from one-third in 2002 – rivaling email in popularity. 1. comScore qsearch, June 2008, (divided over 30 days for daily value) 2. PEW Internet & Search Engine Life, Search Engine Use Study, August 2008. Google Confidential and Proprietary 4
  5. 5. Consumers Go Online in Tight Times We asked U.S. consumers how their 53% use search engines more to research shopping habits have purchases changed since the downturn in the economy. 54% spend more time researching products online before they buy them in a store 39% buy more products online (rather than in- store) Google Confidential and Proprietary 5 Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 U.S. respondents
  6. 6. And Look To Search Engines First We asked U.S. consumers about their main sources of information on products and services since the economic downturn. 0% 5% 10% 15% 20% 25% 30% 35% Search engine results/ads 29% Websites 22% Recommendations 11% Physical stores 8% TV ads 6% Newspaper ads 4% TV shows 3% Internet ads 2% Newspaper articles 2% Email newsletters 2% Sales people 2% Product/service experts 2% Radio shows 1% Radio ads 1% Magazine articles 1% Magazine ads 1% Direct mail/Catalogs 1% Outdoor ads 0% Telemarketing 0% Print phone books 0% Online sources total: 53% Google Confidential and Proprietary 6 Source: Google Touchpoints Consumer Survey January 2009. Base: 8,675 US respondents.
  7. 7. Marketers Find Search Essential, Too • 25% of senior marketers would increase online spending in a recession, while only 13% would cut it • Analysts predict a 15.3% increase in search engine marketing spend in 2009 • Forecasted $14.1 billion spent on U.S. search marketing in 2009, and $33.4 billion by 2013 Sources: Forrester Research April 2008. Asked 33 marketers with 200 or more employees : “How would you change your online spending patterns if there is an economic recession in the next six months?”; eMarketer, “Search Marketing Trends,” February 2009 ; Google Confidential and Proprietary 7
  8. 8. With Marketing That Is… Essential Cost-Effective Measurable Nimble Google Confidential and Proprietary 8
  9. 9. Search Marketing Provides Highest ROI Types of Online Marketing Offering “Great ROI,” according to U.S. Online Marketers (Jan. 2009) Pay-per-click search ads 51% Emails to house lists 44% SEO 39% Behavioral targeting 32% Affiliate marketing 31% Contextual targeting 26% Rich media ads 23% Contextual text ads 17% Banner ads 13% Emails to third-party lists 12% Pop-ups, pop-unders 9% 0% 10% 20% 30% 40% 50% 60% Source: MarketingSherpa and ad:tech, “Year End Surveys,” January 2009. n=1,260. Google Confidential and Proprietary 9
  10. 10. Even Beyond the Click 50% of searchers are “Brand Advocates” sharing recommendations with friends and family versus 38% for non-searchers Google Confidential and Proprietary 10 Source: comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market
  11. 11. Paid Ads and Organic Search Work Together 1 + 1 = 3! Branded ads supplement performance of natural search In a recent case study of car company, adding branded ads brought in more new visitors % New Visitors to Site Example: Branded 52% 64% Branded R s 12% Increase re Natural c Source: Luxury Vehicle Brand Case Study; Google, GSD&M, July 2007 Google Confidential and Proprietary 11
  12. 12. With Marketing That Is… Essential Cost-Effective Measurable Nimble Google Confidential and Proprietary 12
  13. 13. Be Ready as New Consumer Trends Emerge U.S. searches for “coupons” on since 2004 U.S. searches for “deals” on since 2004 Source: Google Insights for Search. Query numbers are normalized and presented on a scale of 0-100 relative to Google Google Confidential and Proprietary 13 queries over time.
  14. 14. Track Trends With Google Insights for Search Google Confidential and Proprietary 14
  15. 15. Be Ready Throughout the Purchase Funnel With one search campaign, you reach customers who are ready to buy—and those who aren’t Awareness Recognition Preference Action Companies are more • Put your brand in • Paid search listings • Purchase intent likely to use search consumer’s increase brand equity increases when marketing for consideration set paid search is used increasing brand • Impressions provide awareness (61%) than • Searchers are “free” brand lift • Searchers spend for selling directly more engaged than 20% more than online (58%) or non-searchers2 non-searchers2 generating leads (20%)1 Use search to reach Change ad copy to Brand and target induce purchase Marketing consumers and Advertise on Advertise on your or offer promotions Direct specific lifestyles non-branded terms branded keywords and coupons Response Source: 1 SEMPO's annual survey of SEM agencies and advertisers, Jan. 08 Google Confidential and Proprietary 15 2 comScore Digital Shelf Study (Survey), Feb 2007 – Apr 2007, Total U.S. Market
  16. 16. With Marketing That Is… Essential Cost-Effective Measurable Nimble Google Confidential and Proprietary 16
  17. 17. Monitor Your Campaigns in Precise Detail The “hourly (by date)” report is just one example of the detailed data available in Google AdWords Google Confidential and Proprietary 17
  18. 18. Easily Track ROI with Google Analytics Google Confidential and Proprietary 18
  19. 19. Thank You Google Confidential and Proprietary 19
  20. 20. Appendix Google Confidential and Proprietary 20
  21. 21. Measurement Tools: Google Conversion Tracking Track ROI and make smarter online advertising decisions. How does it work? • Tool tracks users who click on your AdWords ad and records a conversion when that user reaches your conversion page Benefits for Marketers • Correlate ad clicks to custom conversion metrics • Easily set up tracking for sales, sign-ups, leads, page-view, demo plays, and more • Measure conversion value of campaigns, ad groups, and/or keywords and optimize bids accordingly • Track Google and non-Google ads from one interface Learn more about Conversion Tracking: Google Confidential and Proprietary 21
  22. 22. Measurement Tools: Google Website Optimizer Increase your site’s conversion rate. Reports – Timbuktu Bikes Running Pause I Stop I Settings I Copy How does it work? • Free website testing and optimization tool allowing you to increase effectiveness of your website and visitor conversion rates Benefits for Marketers • Increase visitor satisfaction, time spent on site, and decrease bounce rates • Works with all analytics solutions and all site traffic, not just AdWords traffic • Test alternative headlines, images, and promotional copy – let your visitors tell you what works best New • Access detailed reports on combination Google Website Optimizer Service Plans (June ’08) – of content and components of Hourly technical service and support for marketers, in sites that drive highest conversion rate cooperation with Google Website Optimizer Authorized Consultants Learn more about Website Optimizer: Google Confidential and Proprietary 22 22
  23. 23. Case Study: Picasa Experience Google Confidential and Proprietary 23
  24. 24. Picture Was Not Worth 1,000 Conversions This version drove 30% more downloads. It was the best of 200 versions – an insight gained through Website Optimizer Google Confidential and Proprietary 24