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Consumers and Marketing Strategies
in the Digital Space
Andrew Pozniak – Industry Leader, Emerging Markets
Bucharest, 04 N...
Agenda

   Internet evolution

   Understanding user activity

   What drives Search?

   Search and brands

   Ideas for ...
Internet evolution




                     Google Confidential and Proprietary   3
The evolution of the Internet
     Information &              Commerce              Community
    Communication           ...
Hours online / month

Growth in online usage                                         2003              2007               ...
Where does your business sit?




           43%                             50%            7%

     Internet as          ...
Understanding user activity




                        Google Confidential and Proprietary   7
Search is a
universal consumer
behaviour




         Google Confidential and Proprietary
81%
                   of internet users enter
                   websites via a search
                   engine




Sour...
Automotive
     Internet is the number one starting point                                                                 ...
Search behaviour
is also personal
and iterative




        Google Confidential and Proprietary
On average mobile phone shoppers do 8.5
searches prior to conversion


                             Share of Mobile Phone ...
These searches occur over an extended period of
time - average 27 days between first search and sale

                    ...
From ‘holiday in the sun’ to holiday
                                                                                     ...
Automotive
        Buyers are undecided when they start                                                                   ...
Again this is true across different industries

        Destination you
          want to go
                             ...
Automotive
 In fact search enables discovery of new brands                                                                ...
Automotive
                                                                                                         Exampl...
What drives Search?




                      Google Confidential and Proprietary   19
All touchpoints
drive online search




         Google Confidential and Proprietary
67% of online search
                                                                37%                                  ...
Of course, online ads drive search activity too


Display                            Video
 Ads                           ...
Search and brands




                    Google Confidential and Proprietary   23
Search Results
pages reflect and
influence
consumers’ brand
perceptions



         Google Confidential and Proprietary
Advertising on your brand names reinforces your
brand in the mind of the consumer




                                    ...
Consumers associate search ranking with the
                  success of the company




71% of userson top ofleading bran...
Search ads have a clear impact on brand metrics

               Brand Affinity                                            ...
Ideas for an economic slowdown




                      Google Confidential and Proprietary   28
1. Users never stopped searching




                                   113 billion searches
                             ...
Search query growth in Romania (+40% Q3 09 v
  Q3 08)
                                                             2009
  ...
2. When incentivised, consumers will buy

       Recent retailer incentives spurred great consumer demand and sales




  ...
3. Shopping starts earlier…

As of September 2009, consumers have already begun shopping for the upcoming
holidays




   ...
3. …and ends later

During the last holiday season, some consumers waited till close to the holidays to
complete their hol...
4. Consumers have more choice

Consumers today have many more choices: greater product options, new marketplaces
(i.e. onl...
5. Online continues to outpace offline

Online conversions continue to show year-over-year growth, outpacing negative over...
6. Online increasingly drives offline




   “Lundgren said that every dollar spent online at Macys.com influences $5.77
 ...
7. Focus on sales conversion is key




                         It’s easier to double profits by
                 doublin...
7. Your visitors will show you what works and
what doesn’t


              Media tested               Buttons tested

    ...
Final thoughts




                 Google Confidential and Proprietary   39
Marketers need to catch up with consumers
   Search is at the start of the     Where is it in
       consumer process     ...
You can always experiment and measure…




                                     Google Confidential and Proprietary   41
“To have a great idea – have a lot
            of them"
            - Thomas Edison




                    Google Confide...
Q&A
         Andrew Pozniak
Industry Leader, Emerging Markets


         Thank you!




                                Go...
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Andrew Pozniak Consumers And Marketing Strategies In The Digital Space

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Transcript of "Andrew Pozniak Consumers And Marketing Strategies In The Digital Space"

  1. 1. Consumers and Marketing Strategies in the Digital Space Andrew Pozniak – Industry Leader, Emerging Markets Bucharest, 04 November 2009 Google Confidential and Proprietary
  2. 2. Agenda Internet evolution Understanding user activity What drives Search? Search and brands Ideas for an economic slowdown Final thoughts Google Confidential and Proprietary 2
  3. 3. Internet evolution Google Confidential and Proprietary 3
  4. 4. The evolution of the Internet Information & Commerce Community Communication Self Expression & Entertainment 1.0 2.0 3.0 1994 1998 2000 2003 2006 2009 Users 77M 400M 500M 1,000M 1,600M Google Confidential and Proprietary 4
  5. 5. Hours online / month Growth in online usage 2003 2007 2012 11 16 32 Entertainment 0.5 2 6.5 Community 1 1.5 7 eCommerce 2 2.5 4.5 2.25 4 6 Communication Information 5 6 7.5 Google Confidential and Proprietary 5
  6. 6. Where does your business sit? 43% 50% 7% Internet as Internet as Internet as brochureware sales channel engagement tool Source: Fortune 500 web audit (Feb 2008) Google Confidential and Proprietary 6
  7. 7. Understanding user activity Google Confidential and Proprietary 7
  8. 8. Search is a universal consumer behaviour Google Confidential and Proprietary
  9. 9. 81% of internet users enter websites via a search engine Source: Forrester Research Inc., “UK Internet User Monitor” Google Confidential and Proprietary
  10. 10. Automotive Internet is the number one starting point Example 80% of new car buyers started their search on the internet Source: Ipsos MORI, Question 4.1: As you started to research your new car purchase, where was the first place you began searching for information? Question 4.2: Which other sources of information did you use at any stage in researching and buying your car? Base: All respondents Google Confidential and Proprietary 10
  11. 11. Search behaviour is also personal and iterative Google Confidential and Proprietary
  12. 12. On average mobile phone shoppers do 8.5 searches prior to conversion Share of Mobile Phone converters by number of searches conducted per converter Number of mobile phone searches per converter 22% do 10 or more Google Confidential and Proprietary 12
  13. 13. These searches occur over an extended period of time - average 27 days between first search and sale 42% Sales 38% Searches Time from First Search 42% of mobile conversions occur after 30 days Purchases & research tracked at a leading set of mobile phone retailers’ websites – Carphonewarehouse.com, dialaphone.co.uk, mobilefun.co.uk, o2.co.uk, orange.co.uk, phones4u.co.uk, three.co.uk, t-mobile.co.uk, virgin mobile, vodafone.co.uk Google Confidential and Proprietary 13
  14. 14. From ‘holiday in the sun’ to holiday Travel purchase in 33 days – 11 searches, 28 site visits Example HolidayRentals Teletext Holidays ebookers Hotels.com TUI TripAdvisor TUI Visits TravelRepublic TUI First Choice TripAdvisors First Choice TUI Thomas Cook First Choice HolidayWatchdog TUI AirTours Expedia AirTours Thomas Cook AirTours Thomas Cook First Choice First Choice Tui First Choice Olympic Holidays Day 1 5 8 13 21 29 33 Holiday in the sun Cheap Flights Cyprus Cyprus Palm Beach Hotel Thomson Hotels Larnaca Cyprus Holidays Searches Spain Holidays Cyprus Holidays Cyprus holidays Beau Rivage Hotel Cyprus Europe Holidays Holidays in the Sun Source: Comscore Research Paper October 2007 Google Confidential and Proprietary
  15. 15. Automotive Buyers are undecided when they start Example 52% 62% 69% Undecided on Undecided on Undecided on Type of car Brand of car Model of car (eg. Sports car) (eg. Ferrari car) (eg. Enzo car) Source: Ipsos MORI, Question 3.1/3.2/3.3: When you first started looking, how much did you know about the Type / Make / Model of car you wanted to buy? Base: New car buyers (n=500) Google Confidential and Proprietary
  16. 16. Again this is true across different industries Destination you want to go 75% Days you want to fly 44% Price you want to 23% spend Times you want to fly 18% Airline you want to fly 8% N=1894 Q: “You indicated that you use search engines to help you research flights. Before using a search engine to help you research flights, have you already made up your mind about the:” Source: Media-Screen/GMI Apr 06 Google Confidential and Proprietary 16
  17. 17. Automotive In fact search enables discovery of new brands Example Automotive Example: Search engines help me Discover new brands 44% Discover new models 48% Discover new and relevant websites 61% Compare makes and models 64% Make more informed decisions 64% Find the best price 47% Source: TNS / Google Automotive consumer study June 2007; Base: All respondents who bought a new car % - Completely Agree - Agree Google Confidential and Proprietary
  18. 18. Automotive Example The majority of car buyers switch brands 55% Source: Ipsos MORI, Question 5.2: What type of car did you buy in the end? Google Confidential and Proprietary Base: All respondents
  19. 19. What drives Search? Google Confidential and Proprietary 19
  20. 20. All touchpoints drive online search Google Confidential and Proprietary
  21. 21. 67% of online search 37% users are driven to search for information about a particular 30% company, product, service, or slogan 20% by an offline channel 39% 40% Source: iProspect, “Offline Channel Influence on Online Search Behavior,” 2007. (Q. Within the last six months, which of the following prompted you to go to a search engine to look for information on a particular company, product, service, or slogan? Select all that apply.)/ RAB Word of Mouse Study 2007. Google Confidential and Proprietary
  22. 22. Of course, online ads drive search activity too Display Video Ads Ads Driving Search 27% vs 31% After seeing display ads, nearly as many users search as those who click on ads. Google Confidential and Proprietary 22
  23. 23. Search and brands Google Confidential and Proprietary 23
  24. 24. Search Results pages reflect and influence consumers’ brand perceptions Google Confidential and Proprietary
  25. 25. Advertising on your brand names reinforces your brand in the mind of the consumer Google Confidential and Proprietary 25
  26. 26. Consumers associate search ranking with the success of the company 71% of userson top ofleading brands expect to be the search results page 36% of users link placement to company prominence Source: comScore, US, CPG study, October 2007 Google Confidential and Proprietary 26 Jupiter Research / Ipsos Insight Consumer Survey, n=2.103 (Search Engine users US only), Jan 2008
  27. 27. Search ads have a clear impact on brand metrics Brand Affinity Purchase Intent Brand Recall (do you like it?) (would you buy it?) (do you remember it?) 1.18x 1.14x + 2.5x Source: Enquiro Research/Ipsos Interactive Services, May 2008, Aggregated Data: All Industries, all countries (UK, Germany, France) Google Confidential and Proprietary
  28. 28. Ideas for an economic slowdown Google Confidential and Proprietary 28
  29. 29. 1. Users never stopped searching 113 billion searches worldwide in July 2009 + 41% versus 2008 In Europe, 36 billion searches in July 2009 Source: comScore Google Confidential and Proprietary 29
  30. 30. Search query growth in Romania (+40% Q3 09 v Q3 08) 2009 2008 2007 + 40% All searches on Google RO Source: Google Internal Google Confidential and Proprietary 30 30
  31. 31. 2. When incentivised, consumers will buy Recent retailer incentives spurred great consumer demand and sales Cash for Clunkers 700,000 new car sales 690,000 dealership vouchers $2.88 Billion jetBlue All You Can Jet All passes sold out in 2 days 31 Million searches in 7 hrs 10 Million blog results Google Confidential and Proprietary 31
  32. 32. 3. Shopping starts earlier… As of September 2009, consumers have already begun shopping for the upcoming holidays 47% Have started holiday shopping/researching.1 36% Have made holiday purchases. 2 Source: Google/OTX Consumer Pulse Check, 9/09. Base: Those who plan to shop/research or purchase this holiday season (Nearly 9 out of 10 plan to shop/research or purchase.) [1] Have you started your 2009 Holiday shopping/researching? n=2,331. [2] Have you started your 2009 Holiday purchasing? Please think of any gifts that you may shop for or purchase during the Holiday Season, as well as those you may shop for or purchase after the holidays (e.g., post-holiday sales). n= 2,361. Google Confidential and Proprietary 32
  33. 33. 3. …and ends later During the last holiday season, some consumers waited till close to the holidays to complete their holiday shopping 98% Year-over-year e-commerce sales growth happened during the weekend before Christmas. 3 Source: [3] comScore Press Release, December 2008. Google Confidential and Proprietary 33
  34. 34. 4. Consumers have more choice Consumers today have many more choices: greater product options, new marketplaces (i.e. online, store, mobile), and increased retailer competition New Retailers Online Expanded Product Offerings +7% Source: Hitwise. Shopping & Classified Website Ranking Report, week ending 9/26/09 vs. 9/27/08. Google Confidential and Proprietary 34
  35. 35. 5. Online continues to outpace offline Online conversions continue to show year-over-year growth, outpacing negative overall retail sales growth Home Apparel & Home Consumer 174% Furnishings Accessories Department Improvement Electronics Stores Stores Stores Stores Stores 135% 90% 59% 51% -7% -7% -10% Home Apparel Department Home Consumer Furnishings Stores Improvement Electronics -12% -14% Google Search-Driven Conversions YoY Growth Overall Retail Sales YoY Growth (January – August 2009) (January – August 2009) Source: Compete/Google Retail Dashboard, January through August 2009. Overall Retail sales from US Census Monthly Retail Trade Report for Jan-August 2009. Google Confidential and Proprietary 35
  36. 36. 6. Online increasingly drives offline “Lundgren said that every dollar spent online at Macys.com influences $5.77 spent in stores within 10 days after an online purchase.”1 Source: [1] Internet Retailer, http://www.internetretailer.com/dailyNews.asp?id=31879. Google Confidential and Proprietary 36
  37. 37. 7. Focus on sales conversion is key It’s easier to double profits by doubling your conversion rate, than trying Will text work better than display? to double traffic Website optimization is key to boosting ROI THE BOTTOM LINE Performance Marketer Google Confidential and Proprietary 37
  38. 38. 7. Your visitors will show you what works and what doesn’t Media tested Buttons tested SIGN UP LEARN MORE JOIN US NOW SIGN UP NOW 38 Google Confidential and Proprietary 38
  39. 39. Final thoughts Google Confidential and Proprietary 39
  40. 40. Marketers need to catch up with consumers Search is at the start of the Where is it in consumer process media planning? Search is an integral part of the Where is it in consumer decision process media activity? Google Confidential and Proprietary 40
  41. 41. You can always experiment and measure… Google Confidential and Proprietary 41
  42. 42. “To have a great idea – have a lot of them" - Thomas Edison Google Confidential and Proprietary
  43. 43. Q&A Andrew Pozniak Industry Leader, Emerging Markets Thank you! Google Confidential and Proprietary
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