Google about ROPO

Orange Online Meet-Up
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Agenda:
Evolution of Search and Adwords
E-commerce overview for Western Europe and Romania
Effect of search beyond online sales: Research Online, Purchase Offline (ROPO)
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Evolution of Adwords
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Q: How many internet searches are made in Europe per month?
A: 19 billion
Q: What proportion of these were performed with Google?
A: 75%
Q: What % of the UK media market is invested with Google?
A: 11%
Sources: IAB UK, ComScore

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In the Beginning
Annoying pop up
c1990s
Google Adwords
2000
Google Adwords
2009

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AdWords - making advertising affordable and accountable

Evolution of Search
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Evolution of Search

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The first evolution
Results page 2002

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Results page 2009

Making Google easy is hard
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E-Commerce Overview
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E-commerce in Western Europe:
20% of the Western European consumers shop online.
Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008, Forrester, “Western European Online Retail And Travel Forecast, 2008 To 2014” as cited by Research Recap, March 18, 2009,
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50% of the Western European consumers will be shopping online by 2014.
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Average Western European consumer will spend 1086 Euros per yearon online shopping by 2014.
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Total e-commerce volume will reach $200B from 2008 to $100B by 2014
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... and in Romania:
96%of the Romanian internet users are aware of the possibility of online shopping…
Source: E-commerce: Trends and Attitudes, Research into Romanian Internet Users, gemiusReport, Dec 2008
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... and in Romania:
…and 50% of them have shopped online at least once.
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... and in Romania:
In Romania Online shopping is the second most popular online activity aftersending and receiving e-mails
Source: Eurostat, "Data Table: Internet: Internet Activities—Individuals," December 2008
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... and in Romania:
44% of Romanian internet usersuseInternet as the main source of information for phones and GSM accessories

Research Online, Purchase Offline
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What is ROPO?
Online marketing
Offline marketing
Total Return
-
+
ROPO Effect
ROMI
Return onMarketingInvestment
Online SalesResearch Online
Online SalesResearch Offline
TOTAL
Offline Sales Research Online
(ROPO)
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ROPO is constantly growing in the retail industry
$1,280B
In-Store sales influenced by Internet
$1,093B
$992B
$634B
Online sales influenced by Internet
$215B
$182B
$166B
$108B
2012
2010
2009
2006
Source: Internet Retail Off-line Influence Model, Jupiter Research; December 20007 (US)
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Online consumer behaviour
Purely ROPO related activities
Your web site needs to cater to both people who want to buy online and to those who research online.
Source: GfK NOP Ltd. For Google, July 2009
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How to Measure ROPO?
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Study Design
Discover efficiency by comparing 3 cities with different media formats
Flyer in daily newspapers and regionally-targeted Google advertising
Hamburg
Berlin
Munich
Flyer in newspaper
3 Karstadt Stores
n= 400 in-store interviews
Flyer & reg. Google advert.
5 Karstadt Stores
Regional Google advertising
3 Karstadt Stores
Measure Offline sales
Questionnaire data

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Cost-Revenue Relationship (Index)
Highest efficiency in online-only advertising area, highest revenue in mixed campaign area (online and offline advertising)
Index
Hamburg, Berlin: Attribution of online revenues by direct link to online campaigns; Munich: 50% of revenues, not generated by campaigns
Source: Karstadt

How to measure ROPO?
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Geo Test
Tracking
Modelling
Regions test and control
Maximize spend in test region,
Oher factors consistent
Analyse before, during, after
6-8 weeks
Additional Adwords tracking
Coupons:
Loyalty Programs:
Dedicated Hotline:
Regression model
Time series (at least 3 years)
Reflect all drivers of sales
Analyze
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Thank You
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http://www.ropo.fr	1160
http://ibiz.net.pl	98
http://understand-ropo.blogspot.com	57
http://orange.ro	47
http://www.orange.ro	29
http://www.slideshare.net	25
http://translate.googleusercontent.com	6
http://www.paperblog.fr	2
http://static.slidesharecdn.com	1

Google about ROPO

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