1.73 billion ***This slide builds in one part *** ***Click to add user numbers by region*** Don’t need me to tell you that internet is a global phenomenon. What do users do when they’re online? You know yourself – we communicate, email and chat – we want to be entertained (YouTube supreme example) – and we want to find information. And the way we find information is to search for it (recent data from econsultancy.com shows 80% of travellers use search engines to plan their trip). User numbers continue to increase strongly with significant further growth expected here in the Middle East, Asia and Africa too.
SPEAKER NOTES (Mar 07 data comparing Google’s share of search page views, as a percentage of total page views within the country. Share figures quoted exclude search page views from third parties in Google’s Search Network e.g. ask.co.uk. Greek data is from Q1/Q2 2006 surveys which included the question “ Which of the following is the search engine that you use the most?”)
S2. Approximately how much time do you typically spend in each following phases of travel planning process? “Comparing specific destinations” Asked of Destination Travelers (n=1,276) ** indicates significance at the 95% level. * indicates significance at the 90% level.
DECISION PHASE: Source: ‘The Traveler’s Road to Decision’. O tx and Google. July 21 ,2009.
Stats for Travel – NA Did you know the typical Travel advertiser has a lower CPA on content than on search? This means that on average, it costs less to acquire a customer on the content network than on Google search. This comes from an analysis of advertisers running both content and search campaigns with conversion tracking enabled. This statistic is based on all campaigns that run on content and is not split out between text-based and display-based campaigns. We understand that the majority of content campaigns are still heavy in text. Further, the median advertiser sees 20% of their total conversions come from content. This means that if the advertiser is only buying search with us, then they are missing out on a significant amount of potential business. And this additional conversions come from the content network, they’re not just additional conversions from search. So you not only get more conversions, you get them cheaper as well. Here are some reasons for this: 1). Users spend about 50% of their time online browsing content compared to roughly 5% on a search engine. 2). There’s a lot of content inventory out there, and in most cases it’s less competitive than search. That drives CPCs down, which makes conversions cheaper. 3). Smart Pricing helps drive down CPCs as well. 4). Optional tools, like Conversion Optimizer and Site Exclusions, can help.
Google- E Tourism Africa
E-Tourism Africa Summit Your global media partner for the 21 st century Andrew Pozniak – [email_address] - Travel Industry Leader – Emerging Europe, Middle East and Africa
The Internet - the world’s most visited destination Asia 738m Europe 418m North America 253m Central/South America 179m Africa 67m Middle East 57m Oceania/ Australasia 21m Source: Internet World Stats – Sep 09 <ul><li>User numbers by region </li></ul>
In this fast growing world our company has a mission…
With a global presence Approximately 20,000 full-time employees worldwide
And a leading market position Europe 76% US 55% Austria 88% Denmark 89% Finland 94% France 78% Germany 78% UK 73% Switz. 75% Sweden 86% Spain 84% Russia 28% Norway 86% Netherlands 79% Ireland 86% Italy 75% Sources: Market share of search page views, measured by Media Metrix and NetRatings – Jun 09
Despite the slowdown, customers never stopped searching (e.g. +20% Jun-Aug 09 v Jun-Aug 08 in DE) Source: Google Internal Travel searches on Google DE <ul><ul><li>2008 </li></ul></ul><ul><ul><li>2007 </li></ul></ul><ul><ul><li>2009 </li></ul></ul>+ 20% + 19%
In fact, here in South Africa, paid clicks from Google have accelerated (+46% Oct 09 v Oct 08) Source: Google Internal Travel clicks on Google ZA <ul><ul><li>2008 </li></ul></ul><ul><ul><li>2007 </li></ul></ul><ul><ul><li>2009 </li></ul></ul>+ 46% + 35%
And searches for South Africa have regained their 2007 ‘share’
Taking the UK as a source market, South Africa is one of the year’s stronger performers Source: Google Internal Jan - Oct 09
As you know, the Internet influences travel decisions more than ever before Source: Google & Compete 2009, US
But undecided travellers take time a long time to compare 36% take more than one month to make their decision Source : Compete US August 2009 ** indicates significance at the 95% level. Q. - Approximately how much time do you typically spend in each following phases of travel planning process? “Comparing specific destinations”
(In the US) non-transactional sites account for 1/3rd of traffic Source: PhoCusWright Online Traffic and Conversion report – Sep 09
PhoCusWright/Compete break down ‘non-transactional’ traffic across five categories ‘ Non-transactional’ Source: PhoCusWright Online Traffic and Conversion report – Sep 09
Customer searches are becoming more specific Travel Query Length 2008 vs 2009 Query length has increased for Travel queries during 2009 In September 2009 there were more 3, 4, 5, 6 and 7 word queries, as a percentage of total queries, than in the equivalent period in 2008. Source: Google internal data Source: Google UK Internal Jan - Oct 09
The same PhoCusWright study highlights significant differences in conversion rate Source: PhoCusWright Online Traffic and Conversion report – Sep 09 Conversion % = Purchases/unique visitors (shoppers for OTA’s) Category/ Channel Q2 09 Conversion % Air Suppliers 11.6% OTA Air 8.5% Hotel Suppliers 10.8% OTA Hotel 7.4% Car Suppliers 19.7% OTA Car 13.0% OTA Packages 2.5%
Source: PhoCusWright European Online Travel overview – Oct 09 Whilst, as expected, the USA continues to lead Europe and AsiaPacific in overall online penetration
Video content is now increasingly widely accessed Source: Google & OTX, The Traveler’s Road to Decision; June 2009 36% PERSONAL BUSINESS 65% (Q1) Typically, how often do you watch videos on the Internet? (Q3) What types of videos have you ever watched on the Internet? 55% 56% Watch videos on the Internet at least once a week: Watch TRAVEL videos on the Internet: In a similar April 2008 study, only 41% of travelers watched online video at least once a week and only 15% of online video viewers watched travel related videos
Throughout the whole planning and booking process Source: Google & OTX, The Traveler’s Road to Decision; June 2009 Base: Watch travel videos online (Q5) At what points in your travel planning process do you view videos online? (N=1035 Personal; n=801Business) 63% 66% PERSONAL* BUSINESS* 47% 56% 60% 64% 64% 66% 57% 66% *Top 2 box summary
We’re very pleased that Google Maps ZA is now live!
And we’re making a serious investment in Street View <ul><li>Trike competition winners </li></ul><ul><li>Chapman's Peak and Cape coastal routes </li></ul><ul><li>Kruger National Park </li></ul><ul><li>Blyde River Canyon </li></ul>
We’re pleased with the results of Street View so far
<ul><li>“ Installing Google Maps on our websites was quick and easy, it was a simple step-by-step process” - Jenny Pretorius - www.countryroads.co.za </li></ul>It’s straightforward to install Google Maps on your site
“ Not only were we able to roll Google Maps out on the RE/MAX of Southern Africa website, but also across over 50,000 listings in less than a day using the API. Since then, we have received nothing but praise from our agents and the public as the maps now give an accurate over view of each listings’ suburb. Google Maps has opened up sales in previously low performing areas”- Jonathan Hart, RE/MAX of Southern Africa - www.remax.co.za And to customise it to your needs
Use Local Business Center to keep your business listing up-to-date on Google Maps
The information also feeds through to Place pages - we’re hoping for Place pages for every Place on Earth
The increasing importance of video and content
YouTube in summary Enter - Over 400 million people come to YouTube every week Discover - T he world's second largest search engine Watch - Billions of daily playbacks - our video viewership rivals the reach of many TV networks Engage – 20+ hours of content uploaded every minute
YouTube is the media destination on the Internet Source: Comscore/Nielsen – Jun 09 Selected countries Unique monthly visitors (millions) UK 15.2 Germany 15.1 France 13.3 Spain 13.1 Italy 9.9
Example of a new brand channel - Emirates Experience
It’s also far more flexible than TV as an advertising medium - Las Vegas home page takeover
YouTube is the largest individual property in our Content Network
The same ads can be precisely targeted throughout the Google Content Network
Our Content Network of publishers gives Travel advertisers additional conversions for comparable cost The median Travel advertiser has a content CPA that’s 2% lower than search. The median Travel advertiser gets 20% of their conversions from the content network. Internal analysis of North America advertisers advertising on both search and content, with conversion tracking enabled, from Dec. 2007 – Nov. 2008 2% 20%
How to understand us… The Information destination The Entertainment destination The Largest Online Advertising Network Supported by Geographic tools Increasingly enabled via Mobile + + Google Content Network
Thank you! Your global media partner for the 21 st century Andrew Pozniak – [email_address] - Travel Industry Leader – Emerging Europe, Middle East and Africa