Orange Online Meet-Up<br />1<br />
Agenda:<br />Evolution of Search and Adwords<br />E-commerce overview for Western Europe and Romania<br />Effect of search...
Evolution of Adwords<br />3<br />
4<br />Q: How many internet searches are made in Europe per month?<br />A: 19 billion<br />Q: What proportion of these wer...
5<br />In the Beginning<br />	Annoying pop up<br />c1990s<br />Google Adwords<br />2000<br />Google Adwords<br />2009<br />
6<br />AdWords - making advertising affordable and accountable<br />
Evolution of Search<br />7<br />
8<br />Evolution of Search<br />
9<br />The first evolution<br />Results page 2002<br />
10<br />Results page 2009<br />
Making Google easy is hard<br />11<br />
E-Commerce Overview<br />12<br />
E-commerce in Western Europe:<br />20% of the Western European consumers shop online. <br />Source: Eurostat, &quot;Data T...
E-commerce in Western Europe:<br />50% of the Western European consumers will be shopping online by 2014.<br />Source: Eur...
E-commerce in Western Europe:<br />Average Western European consumer will spend 1086 Euros per yearon online shopping by 2...
E-commerce in Western Europe:<br />Total e-commerce volume will reach $200B from 2008 to $100B by 2014<br />Source: Eurost...
... and in Romania:<br />96%of the Romanian internet users are aware of the possibility of online shopping…<br />Source: E...
... and in Romania:<br />…and 50% of them have shopped online at least once. <br />Source: E-commerce: Trends and Attitude...
... and in Romania:<br />In Romania Online shopping is the second most popular online activity aftersending and receiving ...
20<br />... and in Romania:<br />44% of Romanian internet usersuseInternet as the main source of information for phones an...
Research Online, Purchase Offline<br />21<br />
What is ROPO?<br />Online marketing<br />Offline marketing<br />Total Return<br />-<br />+<br />ROPO Effect<br />ROMI<br /...
ROPO is constantly growing in the retail industry <br />$1,280B<br />In-Store sales influenced by Internet<br />$1,093B<br...
Online consumer behaviour<br />Purely ROPO related activities<br />Your web site needs to cater to both people who want to...
How to Measure ROPO?<br />25<br />
26<br />Study Design<br /><ul><li>Discover efficiency by comparing 3 cities with different media formats
Flyer in daily newspapers and regionally-targeted Google advertising</li></ul>Hamburg<br />Berlin<br />Munich<br />Flyer i...
27<br />Cost-Revenue Relationship (Index)<br /><ul><li>Highest efficiency in online-only advertising area, highest revenue...
How to measure ROPO?<br />1<br />2<br />3<br /> Geo Test<br />Tracking<br />Modelling<br /><ul><li>Regions  test and control
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Google about ROPO

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Gokhan Sahin, EMEA Top Account Associate la Google, presented at Orange Online MeetUp event about Search, AdWords, ecommerce and ROPO (Effect of search beyond online sales: Research Online, Purchase Offline )

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  • Two things to take away: 1- E-commerce has enormous growth potential with 80% of the Western European consumers constituting a currently untapped customer segment2- There are still many people who buy offline even in mature markets
  • There are certainly no issues regarding awareness of shopping online in Romania. Internet users know that they can buy things online
  • .. And they are also willing to try online shopping
  • When it comes to phone and phone accessories related issues Romanian’s are likely to consult the web for research purposes. Most probably the purchase happens in a store but internet should be utilized fully as a place to connect with the consumers and make sure they can find information about your products and stores when they are looking for them.
  • Which we call ROPO
  • User behavior also shows that people don’t only use internet for e-commerce purposes. There are actions that are solely related to ROPO behavior and the rest of the actions can be attributed to both ROPO and online purchase. So your web site and online marketing investment needs to replicate this behavior.
  • Google about ROPO

    1. 1. Orange Online Meet-Up<br />1<br />
    2. 2. Agenda:<br />Evolution of Search and Adwords<br />E-commerce overview for Western Europe and Romania<br />Effect of search beyond online sales: Research Online, Purchase Offline (ROPO)<br />2<br />
    3. 3. Evolution of Adwords<br />3<br />
    4. 4. 4<br />Q: How many internet searches are made in Europe per month?<br />A: 19 billion<br />Q: What proportion of these were performed with Google?<br />A: 75%<br />Q: What % of the UK media market is invested with Google?<br />A: 11%<br />Sources: IAB UK, ComScore<br />
    5. 5. 5<br />In the Beginning<br /> Annoying pop up<br />c1990s<br />Google Adwords<br />2000<br />Google Adwords<br />2009<br />
    6. 6. 6<br />AdWords - making advertising affordable and accountable<br />
    7. 7. Evolution of Search<br />7<br />
    8. 8. 8<br />Evolution of Search<br />
    9. 9. 9<br />The first evolution<br />Results page 2002<br />
    10. 10. 10<br />Results page 2009<br />
    11. 11. Making Google easy is hard<br />11<br />
    12. 12. E-Commerce Overview<br />12<br />
    13. 13. E-commerce in Western Europe:<br />20% of the Western European consumers shop online. <br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />13<br />
    14. 14. E-commerce in Western Europe:<br />50% of the Western European consumers will be shopping online by 2014.<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />14<br />
    15. 15. E-commerce in Western Europe:<br />Average Western European consumer will spend 1086 Euros per yearon online shopping by 2014. <br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />15<br />
    16. 16. E-commerce in Western Europe:<br />Total e-commerce volume will reach $200B from 2008 to $100B by 2014<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009, <br />16<br />
    17. 17. ... and in Romania:<br />96%of the Romanian internet users are aware of the possibility of online shopping…<br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />17<br />
    18. 18. ... and in Romania:<br />…and 50% of them have shopped online at least once. <br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />18<br />
    19. 19. ... and in Romania:<br />In Romania Online shopping is the second most popular online activity aftersending and receiving e-mails<br />Source: Eurostat, &quot;Data Table: Internet: Internet Activities—Individuals,&quot; December 2008<br />19<br />
    20. 20. 20<br />... and in Romania:<br />44% of Romanian internet usersuseInternet as the main source of information for phones and GSM accessories<br />Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008<br />
    21. 21. Research Online, Purchase Offline<br />21<br />
    22. 22. What is ROPO?<br />Online marketing<br />Offline marketing<br />Total Return<br />-<br />+<br />ROPO Effect<br />ROMI<br />Return onMarketingInvestment<br />Online SalesResearch Online<br />Online SalesResearch Offline<br />TOTAL<br /> Offline Sales Research Online<br />(ROPO)<br />22<br />
    23. 23. ROPO is constantly growing in the retail industry <br />$1,280B<br />In-Store sales influenced by Internet<br />$1,093B<br />$992B<br />$634B<br />Online sales influenced by Internet<br />$215B<br />$182B<br />$166B<br />$108B<br />2012<br />2010<br />2009<br />2006<br />Source: Internet Retail Off-line Influence Model, Jupiter Research; December 20007 (US)<br />23<br />23<br />
    24. 24. Online consumer behaviour<br />Purely ROPO related activities<br />Your web site needs to cater to both people who want to buy online and to those who research online. <br />Source: GfK NOP Ltd. For Google, July 2009<br />24<br />
    25. 25. How to Measure ROPO?<br />25<br />
    26. 26. 26<br />Study Design<br /><ul><li>Discover efficiency by comparing 3 cities with different media formats
    27. 27. Flyer in daily newspapers and regionally-targeted Google advertising</li></ul>Hamburg<br />Berlin<br />Munich<br />Flyer in newspaper<br />3 Karstadt Stores<br />n= 400 in-store interviews<br />Flyer & reg. Google advert.<br />5 Karstadt Stores<br />n= 400 in-store interviews<br />Regional Google advertising<br />3 Karstadt Stores<br />n= 400 in-store interviews<br />Measure Offline sales<br />Questionnaire data <br />
    28. 28. 27<br />Cost-Revenue Relationship (Index)<br /><ul><li>Highest efficiency in online-only advertising area, highest revenue in mixed campaign area (online and offline advertising)</li></ul>Index<br />Hamburg, Berlin: Attribution of online revenues by direct link to online campaigns; Munich: 50% of revenues, not generated by campaigns<br />Source: Karstadt<br />
    29. 29. How to measure ROPO?<br />1<br />2<br />3<br /> Geo Test<br />Tracking<br />Modelling<br /><ul><li>Regions test and control
    30. 30. Maximize spend in test region,
    31. 31. Oher factors consistent
    32. 32. Analyse before, during, after
    33. 33. 6-8 weeks
    34. 34. Additional Adwords tracking
    35. 35. Coupons:
    36. 36. Loyalty Programs:
    37. 37. Dedicated Hotline:
    38. 38. Regression model
    39. 39. Time series (at least 3 years)
    40. 40. Reflect all drivers of sales
    41. 41. Analyze</li></ul>28<br />28<br />28<br />
    42. 42. Thank You<br />29<br />

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